nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2021‒01‒25
four papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Tax Evasion and Unions in a Cournot duopoly By Luciano Fanti; Domenico Buccella
  2. Immigration and Employment: Substitute Versus Complementary Labor in Selected African Countries By Arina Viseth
  3. Self-employment and subjective well-being By Binder, Martin; Blankenberg, Ann-Kathrin
  4. The Policy Drivers of Self-Employment: New Evidence from Europe By Annabelle Mourougane; Balazs Egert; Mark Baker; Gábor Fülöp

  1. By: Luciano Fanti; Domenico Buccella
    Abstract: In a Cournot duopoly with indirect taxes evasion, this paper counter-intuitively shows that, in the presence of unions, a higher taxation may increase profits because taxes reduce wage claims. This result is likely to occur if the market size is adequately large and the detection probability is not too high. Moreover, unionisation 1) leaves unaltered the absolute while reduces the relative tax evasion; and 2) increases tax revenue. Since consumer and social welfare are unaffected by taxation, the policy implication is that higher taxes (which are always revenue-enhancing) ultimately lead to a redistribution from wages to profits.
    Keywords: Tax Evasion, Sales Tax, Cournot duopoly, Unions
    JEL: H20 H25 H26 J5
    Date: 2020–12–01
    URL: http://d.repec.org/n?u=RePEc:pie:dsedps:2020/266&r=all
  2. By: Arina Viseth
    Abstract: This paper uses census and household survey data on Cameroon, Ghana, and South Africa to examine immigration’s impact in the context of a segmented labor market in Sub-Saharan Africa. We find that immigration affects (i) employment (ii) employment allocation between informal and formal sectors, and (iii) the type of employment within each sector. The direction of the impact depends on the degree of complementarity between immigrants and native workers’ skills. Immigration is found to be productivity-enhancing in the short to near term in countries where, the degree of complementarity between immigrants and native workers’ skill sets is the highest.
    Keywords: Migration;Employment;Labor markets;Informal employment;Self-employment;WP,immigration share,wage employment,native worker,immigration's impact,impact immigration
    Date: 2020–07–31
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:2020/149&r=all
  3. By: Binder, Martin; Blankenberg, Ann-Kathrin
    Abstract: Self-employment contributes to employment growth and innovativeness and many individuals want to become self-employed due to the autonomy and exibility it brings. Using "subjective well-being" as a broad summary measure that evaluates an individual's experience of being self-employed, the chapter discusses evidence and explanations why self-employment is positively associated with job satisfaction, even though the self-employed often earn less than their employed peers, work longer hours and experience more stress and higher job demands. Despite being more satisfied with their jobs, the self-employed do not necessarily enjoy higher overall life satisfaction, which is due to heterogeneity of types of self-employment, as well as motivational factors, work characteristics and institutional setups across countries.
    Keywords: self-employment,entrepreneurship,subjective well-being,job satisfaction,lifesatisfaction
    JEL: L26 J24 J28
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:zbw:cegedp:411&r=all
  4. By: Annabelle Mourougane; Balazs Egert; Mark Baker; Gábor Fülöp
    Abstract: Using cross-country time series panel regressions for the last two decades, this paper seeks to identify the main policy and institutional factors that explain the share of self-employment across European countries. It looks at the aggregate share of self-employed as well as its breakdown by age, skill and gender. The generosity of unemployment benefits, and to a lesser extent, spending on active labour market policies appear to be robust determinants of the long-term share of self-employed in European countries. No significant relation could be identified between the stringency of employment protection and aggregate self-employment. However, there are significant, and oppositely signed, impacts on high- and low-skilled self-employed separately. Both the tax wedge and the minimum wage appear to be related positively to the share of self-employed in the long term, but the relation holds for some categories of workers only.
    Keywords: self-employment, labour market, labour market regulations, labour market institutions, Europe
    JEL: J01 J21 J41 J48
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_8780&r=all

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