nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2021‒08‒16
two papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia
  1. When You Can't Afford to Wait for a Job: The Role of Time Discounting for Own-Account Workers in Developing Countries By Thiago Scarelli; David Margolis
  2. Supporting Informal Child Care Providers in Detroit By Megan Hague Angus; Jaime Thomas; Mynti Hossain; Nazihah Siddiqui; Cleo Jacobs Johnson; Daisy Gonzalez; Patricia Del Grosso
  1. By: Thiago Scarelli (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); David Margolis (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Frictional labor markets impose a fundamental trade-off: individuals may work on their own at any time, but can only take a potentially better-paid wage job after spending some time looking for it, suggesting that intertemporal considerations affect how people choose their occupation. We formalize this intuition under the job search framework and show that a sufficiently high subjective discount rate can justify the choice for own-account work even when it pays less than wage work. With this simple model, we estimate a lower bound for the discount rate that is implicit in the occupational choice of urban own-accountworkers in Brazil. We find that at least 65% of those workers appear to discount the future at rates superior to those available in the credit market, which suggests constrained occupational choice. Finally, we show that the es- timated time preference lower bound is positively associated with food, clothing, and housing deprivation.
    Keywords: Financial constraints,Developing countries,Self-employment,Own-account work,Time discounting,Brazil
    Date: 2021–07
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03288728&r=
  2. By: Megan Hague Angus; Jaime Thomas; Mynti Hossain; Nazihah Siddiqui; Cleo Jacobs Johnson; Daisy Gonzalez; Patricia Del Grosso
    Abstract: This issue brief highlights learnings from a formative evaluation of a collaborative effort by a funder, a research organization, and three community partners that set out to shed light on the strengths, limitations, and needs of informal child care providers in southwest Detroit.
    Keywords: informal child care, child care, early care and education, families, child development
    URL: http://d.repec.org/n?u=RePEc:mpr:mprres:a88435366c5d492388ae770815941132&r=
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