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on Informal and Underground Economics |
| By: | Costas Meghir; Renata Narita; Jean-Marc Robin |
| Abstract: | It is often argued that informal labor markets in developing countries promote growth by reducing the impact of regulation. On the other hand informality may reduce the amount of social protection offered to workers. We extend the wage-posting framework of Burdett and Mortensen (1998) to allow heterogeneous firms to decide whether to locate in the formal or the informal sector, as well as set wages. Workers engage in both off the job and on the job search. We estimate the model using Brazilian micro data and evaluate the labor market and welfare effects of policies towards informality. |
| JEL: | J24 J3 J42 J6 O17 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18347&r=iue |
| By: | Izabela Styczynska |
| Abstract: | This paper addresses the issue of household demand for services in Poland when informal sector is taken into consideration. The aim of the study is threefold: (i) to investigate the factors influencing households expenses for services, (ii) to find the determinants of households’ tax strategy (choice between acquiring services on regular labour market or not), (iii) to investigate the differences between the factors that influence the expenses for formal versus informal services. Two-step Heckman selection model is used to account for the selection into buying household services. Lee’s (1983) procedure is adopted to control for the selection into the particular choice of tax strategy when purchasing household services. The decision whether to buy household services and whether formally or informally is modelled as a sequential choice and estimated by bivariate probit with selection. An important novel feature of the model used is the inclusion of variables that capture social norms and personal attitudes toward tax evasion. The study concludes that factors influencing expenses for services are positively related to financial situation of households, education and age of household head. The probability of avoiding taxes is higher for lower income households, households with more than one member and for those where a positive attitude toward informal employment is expressed. The impact of determinants of expenses for formal and informal services separately is comparable. Only household structure has the opposite effect on expenses for formal services versus informal ones. |
| Keywords: | Informal employment, Households expenditure, Services in the home |
| JEL: | D13 H26 J23 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:sec:cnstan:0444&r=iue |
| By: | Fossen, Frank M.; Büttner, Tobias J. M. |
| Abstract: | We assess the relevance of formal education for the productivity of the self-employed and distinguish between opportunity entrepreneurs, who voluntarily pursue a business opportunity, and necessity entrepreneurs, who lack alternative employment options. We expect differences in the returns to education between these groups because of different levels of control. We use the German Socio-economic Panel and account for the endogeneity of education and non-random selection. The results indicate that the returns to a year of education for opportunity entrepreneurs are 3.5 percentage points higher than the paid employees' rate of 8.1%, but 6.5 percentage points lower for necessity entrepreneurs. -- |
| Keywords: | returns to education,opportunity,necessity,entrepreneurship |
| JEL: | J23 J24 J31 I20 L26 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:201219&r=iue |
| By: | Todd, Petra E. |
| Abstract: | This paper examines the effectiveness of a variety of policy interventions that have been tried in developing and transition economies with the goal of improving women's employability and quality of work. The programs include active labor market programs, education and training programs, programs that facilitate work (such as childcare subsidies, parental leave programs and land titling programs), microfinance programs, entrepreneurship and leadership programs, and conditional cash transfer programs. Some of these policy interventions were undertaken to increase employment, some to increase female employment, and some for other reasons. All of these programs have been subjected to impact evaluations of different kinds and some also to rigorous cost-benefit analyses. Many were found to be effective in increasing women's quantity of work as measured by increased rates of labor market participation and number of hours worked. In some cases, the programs also increased women's quality of work, for example, by increasing the capacity for women to work in the formal rather than the informal sector where wages are higher and where women are more likely to have access to health, retirement, and other benefits. |
| Keywords: | Labor Markets,Labor Policies,Poverty Impact Evaluation,Poverty Monitoring&Analysis,Population Policies |
| Date: | 2012–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6189&r=iue |