nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2022‒09‒19
ten papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Immigration, Wages, and Employment under Informal Labor Markets By Delgado-Prieto, Lukas
  2. Consumption Cities vs. Production Cities: New Considerations and Evidence By Remi Jedwab; Elena Ianchovichina; Federico Haslop
  3. Does the Minimum Wage Affect Wage Inequality? A Study for the Six Largest Latin American Economies By Carlo Lombardo; Lucía Ramirez-Veira; Leonardo Gasparini
  4. The evolution of new forms of work in Moroccan companies following the application of the new labor code, statistical analysis of trends between 2009 and 2015 By Younes El Ansari
  5. Issues and Prospects of Women Street Merchants’: A Study in Davanagere District of Karnataka By H, Gopi
  6. How they hide money? An investigation on tax evasion of large corporations and wealthy taxpayers By Lompo, Miaba Louise; Ouoba, Marie Madeleine
  7. Taxing Moral Agents By Esteban Muñoz Sobrado
  8. A Mixed Duopoly in Interbank Payment Services By Carlos A. Arango-Arango; Yanneth Rocio Betancourt-Garcia
  9. Calidad del empleo agregado, formal e informal: un análisis para la economía colombiana en el periodo 2007 - 2019 By Montoya-Arbelaez, Jaime Alberto; Jurado, Andres Julian
  10. Opciones para expandir la cobertura contributiva de pensiones entre los trabajadores independientes en el Perú By Bernal Lobato, Noelia

  1. By: Delgado-Prieto, Lukas
    Abstract: This paper studies the labor market impacts of Venezuelan immigrants in Colombia. Exploiting spatial variation in exposure, I nd a negative e ect on native wages driven by the informal sector (where immigrants are concentrated) and a reduction in native employment in the formal sector (where the minimum wage binds for many workers). To explain this asymmetry, I build a model in which rms substitute formal for informal labor in response to lower informal wages. Consistent with the model's predictions, I document that the increase in informality is driven by small rms that use both labor types in production.
    Keywords: Immigration; Event study; Labor market; Informality
    JEL: F22 O15 O17 R23
    Date: 2022–08
    URL: http://d.repec.org/n?u=RePEc:rie:riecdt:96&r=
  2. By: Remi Jedwab (George Washington University); Elena Ianchovichina (The World Bank); Federico Haslop (George Washington University)
    Abstract: Cities dramatically vary in their sectoral composition across the world, possibly lending credence to the theory that some cities are production cities with high employment shares of urban tradables while others are consumption cities with high employment shares of urban non-tradables. A model of structural change highlights three paths leading to the rise of consumption cities: resource rents from exporting fuels and mining products, agricultural exports, and premature deindustrialization. These findings appear to be corroborated using both country- and city-level data. Compared to cities in industrialized countries, cities of similar sizes in resource-rich and deindustrializing countries have lower shares of employment in manufacturing, tradable services and the formal sector, and higher shares of employment in non-tradables and the informal sector. Results on the construction of "vanitous" tall buildings provide additional evidence on the relationship between resource exports and consumption cities. Finally, the evidence suggests that having mostly consumption cities might have economic implications for a country.
    Keywords: Structural Change; Urbanization; Consumption Cities; Macro-Development Economics; Industrialization; Natural Resources; Deindustrialization; Construction
    JEL: O11 E24 E26 O13 O14 O18 R1 R12
    Date: 2022–05
    URL: http://d.repec.org/n?u=RePEc:gwi:wpaper:2022-05&r=
  3. By: Carlo Lombardo (CEDLAS-IIE-FCE-UNLP & CONICET); Lucía Ramirez-Veira (CEDLAS-IIE-FCE-UNLP & CONICET); Leonardo Gasparini (CEDLAS-IIE-FCE-UNLP & CONICET)
    Abstract: Minimum wage (MW) policies are widespread in the developing world and yet their effects are still unclear. In this paper we explore the effect of national MW policies in Latin America’s six largest economies by exploiting the heterogeneity in the bite of the national minimum wage across local labor markets and over time. We find evidence that the MW has a compression effect on the wage distribution of formal workers. The effect was particularly large during the 2000s, a decade of sustained growth and strong labor markets. In contrast, the effect seems to vanish in the 2010s, a decade of much weaker labor markets. We also find suggestive evidence of a lighthouse effect: the MW seems to have an equalizing effect also on the wage distribution of informal workers.
    JEL: J22 J31 J38 K31
    Date: 2022–09
    URL: http://d.repec.org/n?u=RePEc:dls:wpaper:0302&r=
  4. By: Younes El Ansari (Université Mohammed V)
    Abstract: "عقب إصدار المدونة الجديدية للشغل بالمغرب قي سنة 2003، كان من المنتظر تطور الاشكال الجديدية للتعاقد من أجل العمل و التي أسس لها الاطار المرجعي الجديد حيث كان من المنتظر ان تتطور نسبة اللجوء الى عقود الشغل المحددة المدة و التشغيل المؤقت بشكل يحد من اللجوء الى النمط الكلاسيكي للتعاقد و هو العقد الغير المحدد المدة. لقد حلل خبراء علم الاجتماع هاته الظاهرة في دول الشمال و التي تتسم بتطور شكل جديدي من العلاقات التعاقدية في المقاولات و التي يصعب توصيفها بأنها علاقة شغل كلاسيكية بالرغم من ان الاجراء المعنيين بها يعتبرون من الاكثر مردودية و هو ما دفع الاخبراء الى توصيف هته العلاقات الشغلية ب ""المواضع الرمادية للتشغيل"". يتجه هذا العمل للوقوف على تطور طبيعة العلاقات الشغلية بالمقاولة المغربية بين فترة 2009 و 2015 ويخلص في الاخير الى انه ، على عكس المنتظر، تم ترسيخ العقد الغير محدد المدة كالالية الاساسية للتعاقد في المقاولات المغربية في هذه الفترة."
    Abstract: In 2003, a new labour law was promulgated in Morocco, new forms of labour relations were to emerge, resulting in atypical forms of contractualisation to the detriment of the traditional permanent contract (CDI). The emergence of these atypical forms of work, at the frontier of the informal, is what the sociologists of the organizations described as the «grey zone of employment» where workers are highly active despite the fact that their contract managers refer instead to a fixed-term contract. This article analyzes the dynamics of labour relations that have recomposed themselves in a period between two moments 2009 and 2015. the study shows that the new forms of work in Morocco have not experienced the expected evolution notably the Fixed-Term Contracts or the contracts of employment in the form of temporary. On the contrary, we are left with a pattern of consolidation of the Indefinite contract as the predominant form of contractualization.
    Abstract: Depuis la promulgation en 2003 du nouveau code du travail au Maroc, de nouvelles formes de relations de travail devaient émerger engendrant ainsi des formes atypiques de contractualisation au détriment du traditionnel contrat à durée indéterminée (CDI). L'émergence de ces formes atypiques de travail, à la frontière de l'informel, constituent ce que les sociologues des organisations qualifiaient de « zone grise d'emploi » où des travailleurs sont fortement actifs malgré que leurs cadres de contractualisation renvoient plutôt vers un contrat de type à durée déterminée. Cet article met la lumière sur les dynamiques des relations de travail qui se sont recomposées dans une période située entre deux moments phares 2009 et 2015. l'étude montre que les nouvelles formes de travail au Maroc n'ont pas connu le développement attendu notamment en ce qui concerne le développement des CDD ou des contrats de travail sous la forme d'intérim comme ce qui s'est passé dans les pays de Nord. Au contraire, on se retrouve avec un schéma de consolidation de la CDI comme forme prédominante de contractualisation.
    Keywords: labor code,labor relations,gray area of employment,fixed-term contract,indeterminate contract,acting,code de travail,relations de travail,Zone grise d’emploi,CDD,CDI,Interim
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-03723860&r=
  5. By: H, Gopi
    Abstract: Predominance of informal employment has been one of the central features of the labor market scenario in India. While the sector contributes around half of the GDP of the county, its dominance in the employment front is such that more than 90% of the total workforce has been engaged in the informal economy. As per survey carried out by the National Sample Survey Organization in the year 2011-12, the total employment in both organized and unorganized sector in the country was of the order of 47 crores. Out of this, about 8 crores were in the organized sector and the balance of 39 crore in the unorganized sector. The workers in the unorganized sector constitute more than 90 percent of the total employment in the country. Women unorganized force has virtually shared the total labor force across the nation. Likewise, Karnataka is also has been running most of the women entrepreneurs in an unorganized sector. Davanagere is one of the emerging districts in Karnataka state which has major commercial places, due to lack of finance, advances, technical issues and exploitation from the dominance hands many of the women entrepreneurs do not ready to involve under organized sector. Nowadays, especially the street vendors appearing more than organized shop labor force. They do survival their businesses in an unorganized sector with many issues. Therefore, the study aims to analyze the problems and prospects of women street vendors’ of Davanagere district. The analysis considered both primary and secondary sources and with a systematic presentation which is going to analyzed by required statistical tools followed by the interpretation.
    Keywords: Street Vendor, GDP, Unorganized labor, Organized labor, Entrepreneur
    JEL: D11 D14 D18 D6 D8 J5
    Date: 2021–11–13
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:114226&r=
  6. By: Lompo, Miaba Louise; Ouoba, Marie Madeleine
    Abstract: Understanding tax evasion and tax avoidance mecanism is of critical importance in both developed and developing countries. This paper shed light on five main strategies used by corporation and wealthy taxpayers to avoid taxes including tax heavens, underground economy, aggressive tax optimization, parallel financial markets and cryptocurrencies. We also propose several actions to deal with tax non-compliance across the globe including prevention, peer reporting, active monitoring of compliance indicators and international cooperation. Theses actions might be combined to achieve optimal results in reducing the iompact of tax evasion and tax avoidance.
    Keywords: tax evasion, tax avoidance, tax compliance
    JEL: M48
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:114235&r=
  7. By: Esteban Muñoz Sobrado
    Abstract: Experimental and empirical findings suggest that non-pecuniary motivations play a significant role as determinants of taxpayers’ decision to comply with the tax authority and shape their perceptions and assessment of the tax code. By contrast, the canonical optimal income taxation model focuses on material sanctions as the primary motive for compliance. In this paper, I show how taxpayers equipped with evolutionary Kantian preferences can account for both these non-pecuniary and material motivations. I build a general model of income taxation in the presence of a public good, which agents value morally, and solve for the optimal linear and non-linear taxation problems.
    JEL: H21 H41 D91
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_9867&r=
  8. By: Carlos A. Arango-Arango (Banco de la Republica de Colombia); Yanneth Rocio Betancourt-Garcia (Banco de la Republica de Colombia)
    Abstract: In this paper, we analyze theoretically the coexistence of two means of payment, such as cash and digital or electronic payments, introducing some distortions in the payments markets to understand the widespread use of cash, specially in emerging countries. Lagos and Wright (2005) theoretical approach allows us to model explicitly the frictions in the exchange process considering money as essential. We introduce in this framework theft and informality (measured by tax evasion) as factors aecting cash usage and competition with a private digital payment platform. Considering heterogeneity in the seller's side by assuming dierent levels of productivity we nd the factors that explain the use of cash or digital payments. If a public provider enters the market with a less expensive platform the fees charged by the private provider have to be adjusted to the cost level of the public platform, decreasing the use of cash in the economy.
    Keywords: Cash; means of payments; payments services; digital payments; instant payments
    JEL: E40 E41 E42 E44
    Date: 2022–08–15
    URL: http://d.repec.org/n?u=RePEc:gii:giihei:heidwp19-2022&r=
  9. By: Montoya-Arbelaez, Jaime Alberto; Jurado, Andres Julian
    Abstract: Este trabajo presenta una medida alternativa del nivel de empleo agregado, formal e informal para la economía colombiana entre 2007 y 2019, la cual permite obtener una medida alternativa de capital humano que es llamada calidad laboral. Uno de los principales resultados es que el nivel educativo tiene un impacto altamente positivo sobre la calidad laboral agregada y por sectores. En segundo lugar, se observan importantes diferencias en la calidad laboral entre los sectores formal e informal, las cuales aumentaron durante el periodo estudiado. En tercer lugar, se evidencia que la caída en la tasa de informalidad que se ha dado en el país ha tenido efectos positivos en la calidad laboral. Finalmente, se presenta una estimación de la Productividad total de factores (PTF), considerando esta medida alternativa del empleo.
    Keywords: Calidad laboral; Nivel de empleo agregado; Informalidad laboral; Índice de Divisia; Contabilidad del crecimiento económico
    JEL: C43 E25 J24 O47
    Date: 2022–08
    URL: http://d.repec.org/n?u=RePEc:rie:riecdt:95&r=
  10. By: Bernal Lobato, Noelia
    Abstract: Ante un contexto marcado por la alta informalidad laboral y las brechas de cobertura contributiva del sistema de pensiones en el Perú, y en atención a los impactos ocasionados por la pandemia de enfermedad por coronavirus (COVID-19), en este estudio se analizan las características del mercado laboral y su relación con el sistema de pensiones en el país, con énfasis en la cobertura de los trabajadores independientes. Junto con indagar en la institucionalidad y los indicadores del sistema de pensiones, así como en el impacto de la pandemia y en experiencias recientes de algunos países de América Latina, el estudio plantea un conjunto de recomendaciones para ampliar la cobertura del sistema de pensiones para los trabajadores independientes en el país.
    Keywords: MERCADO DE TRABAJO, SEGURIDAD SOCIAL, PENSIONES, SECTOR INFORMAL, AUTOEMPLEO, GASTOS PUBLICOS, POLITICA SOCIAL, COVID-19, VIRUS, EPIDEMIAS, ASPECTOS SOCIALES, ESTUDIOS DE CASOS, LABOUR MARKET, SOCIAL SECURITY, PENSIONS, INFORMAL SECTOR, SELF-EMPLOYMENT, PUBLIC EXPENDITURES, SOCIAL POLICY, COVID-19, VIRUSES, EPIDEMICS, SOCIAL ASPECTS, CASE STUDIES
    Date: 2022–08–08
    URL: http://d.repec.org/n?u=RePEc:ecr:col022:48051&r=

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