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on Informal and Underground Economics |
| By: | Hong Zuo; Jiro Nemoto |
| Abstract: | There have been many studies show that there are significant differences in wages between China's workers engaged in formal employment and informal employment, but very few studied the career intention of informal workers. Informally workers in such a disadvantageous position, are they voluntary or forced to engage in informal employment? In China, there is still no empirical research in this area, the purpose of this study is to clarify the career intention of informal workers to provide evidence for policy makers that which part of the informal workers should the government policies support and help.We employ the econometric model which is developed by Günther and Launovboth (2012). It is able to detect unobserved heterogeneity in the informal labor force. The framework can be classified as a finite mixture regression with sample selection. It provides us with consistent estimates of wage equations within any of the segments of the informal workers, taking selection bias into consideration. Furthermore, it can help us to identify the size of voluntary and forced informal workers in the whole informal labor force.The results show that not all the informally employed workers are in a disadvantageous position, voluntary and forced informal workers accounts for about half of all the informal labor force, respectively. |
| Keywords: | China, Labor market issues, Developing countries |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:6769&r=iue |
| By: | Bruhn, Miriam; Loeprick, Jan |
| Abstract: | Using a panel of administrative data and regression discontinuity analysis, this paper examines how the introduction of preferential tax regimes for Georgian micro and small businesses in 2010 affects formal firm creation and tax compliance. The results show that the new tax regime for micro businesses increased the number of newly registered formal firms by 18-30 percent below the eligibility threshold during the first year of the reform, but not in subsequent years. The analysis does not find an effect of the new tax regime for small businesses on formal firm creation in any year. Policy makers are often concerned about abuse risks stemming from differentiated tax treatment of micro and small businesses. The analysis in this paper reveals reduced tax compliance in 2010 around the micro business eligibility threshold, but does not find significant evidence of reduced compliance by Georgian firms in later years. The results also do not show any significant evidence of strategic sorting around the regime eligibility thresholds. |
| Keywords: | Debt Markets,Taxation&Subsidies,Microfinance,Emerging Markets,Access to Finance |
| Date: | 2014–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7010&r=iue |
| By: | Khadra Hassan Siddig; Mohamed Osman Hegazi |
| Abstract: | In this context, there is a need to assess the effectiveness of microenterprises in improving the socioeconomic conditions of women entrepreneurs and in alleviating poverty.Accordingly, the thrust of the study lies in identifying the effect of women microenterpriseson poverty alleviation in urban Sudan, taking the Khartoum state as a case. The study’s focus is on women with microenterprises or engaged in trading, production, and selling in the informal sector. Hence, the population of the study is the 104 thousand of the self-employed females in KS.350 respondents are selected and random sampling technique is applied considering location of project (market-based, home-based, and street sellers), locality (all KS localities, namely Omdorman, Karrari, Ombada, Khartoum, Jabalawlia, Bahri, Shargalneel) and type of activity (20 different activities are covered). Primary data are collected using a structured questionnaire and individual interviews held with female entrepreneurs in KS as well as by optical observation by visiting the respondents in their locations. Collected data include (1) socioeconomic characteristics including age, marital status, education, family size and housing and place of residence; (2) project related data covering projecttype, activityandlocation; (3) entrepreneurial motivations, opinions, attitudes, perceptions and viewpoints; (4) information on familyincomeand assetsbeforeand after the establishment of the project; (5) sources of funding; (6) marketing, competition and overall performance; and (7) problems and constrains. Secondary data are gathered from various sources including national surveys, censuses and previous studies. Both primary and secondary data are analysed using descriptive statistics and cross tabulation imbedded in the advanced data analysis module of Microsoft Excel. Major findings of the study show that the implemented poverty alleviations plans have contributed to alleviate poverty in the study area, but poverty still widespread. Despite the significant role of the government plans, the average performance remained minor and limited. The study results show that poverty has a woman’s face as there are more women than men who suffer from abject poverty in urban Sudan. It is also revealed that, women’s microenterprises are important elements for an effective poverty reduction strategy, as many respondents confirmed that their business is the only source of family income, which support the assumption that women’ projects is a solution for many families to move out of poverty. This is confirmed as well by the findings that 67% of the women entrepreneurs consumed the income they gained from their projects on daily basic needs, mainly food for the family, especially for women-headed household.Female entrepreneurs' age, marital status and education and family size are all found to be influential factors for their entry into business and in general the culture of self-employment is getting widely accepted with lesser rush to be employed by the public sector. This being reported, female entrepreneurs have also identified several constrains and challenges such as the limited access to finance, difficulties in the marketing of their products, the complex administrative procedures and the government’s fees and taxes. |
| Keywords: | Sudan, Developing countries, Developing countries |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:7029&r=iue |
| By: | Khadra Hassan Siddig; Mohamed Osman Hegazi |
| Abstract: | This study highlights the role of Sudanese women entrepreneur in changing their life style by running small-micro business activities; also the study investigates how small-micro business activities affect women’s empowerment. And what are the strategies can be stated to empower women and minimize the obstacles that face their business The study adopted the descriptive and analytical approaches making use of both secondary and primary data. The study’s focus is on women with microenterprises or engaged in trading, production, and selling in the informal sector. Hence, the population of the study is the 104 thousand of the self-employed females in KS.350 respondents are selected and random sampling technique is applied considering location of project (market-based, home-based, and street sellers), locality (all KS localities, namely Oumdorman, Karrari, Oumbada, Khartoum, Jabalawlia, Bahri, Shargalneel) and type of activity (20 different activities are covered). Primary data are collected using a structured questionnaire and individual interviewsheld with female entrepreneurs in KS as well as by optical observation by visiting the respondents in their locations. Collected data include (1) socioeconomic characteristics including age, marital status, education,family size and housing and place of residence; (2) project related data covering projecttype, activityandlocation; (3) entrepreneurial motivations, opinions, attitudes, perceptions and viewpoints; (4) information on familyincomeand assetsbeforeandafter the establishment of the project; (5) sources of funding; (6) marketing, competition and overall performance; and (7) problems and constrains. Secondary data are gathered from various sources including national surveys, censuses and previous studies. Both primary and secondary data are analysed using descriptive statistics and cross tabulation imbedded in Microsoft Excel software package. The main findings of this study revealed that participation of women in small-micro business activities helps in promoting women’s empowerment in both economic and social dimensions. Economic impact and economic empowerment on businesswomen evident in their ability to benefit from their small businesses and increased domestic income level, and creates independence in terms of having theirown income and control of income and ability to use their income contributing to householdpurchases and financingthe education of their children. This is confirmed as well by the findings that before the project only (16%) of the female entrepreneurs indicated that their Income covers the requirement of the family, while after the project (57%) of the respondent gave this response. And this confirms that the family income was increased and thus family conditions had improved due to the project. Also the female entrepreneurs own and manage their small businesses themselves,90% of the respondent reported that they have the ownership of the project, and they haven’t difficulties in the management of the project and it is a high percentage, and this mean that the female entrepreneurs is stronger enough to control over her resources. Economic empowerment also reveals in terms of taking loans from financial institutions and payment of the loan. The study result indicate that social impact on the female entrepreneurs was reflected in their ability to share with their husbands decisions and became more influence in the decision-making matters relating their household, their ability to make their decisions to contribute to children's education, health, the housing improvement, food consumption and savings, the majority of respondents reported that they are spending their own money on school fees and payments for health care expenses. Also the majority of the female entrepreneurs reported that they relied on themselves and became more self-esteem and confidence and became more participation through community and developing social networks, also most of the female entrepreneurs reported that they gained new skills and training and access to knowledge. |
| Keywords: | Sudan, Developing countries, Business cycles |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:7147&r=iue |
| By: | Khadra Hassan Siddig; Mohamed Osman Hegazi |
| Abstract: | In this context, there is a need to assess the role of MFIs to the sustainable growth of women microenterprises, the promotion of entrepreneurship activities and reducing poverty in Sudan. These are therefore the objectives of this research, which in addition tries to investigate the level to which MFIs meet the financial needs of microenterprisesand to identify the MFIs’ challenges in serving microenterprises, taking the Khartoum State as a case. The study’s focus is on women with microenterprises or engaged in trading, production, and selling in the informal sector. Hence, the population of the study is the 104 thousand of the self-employed females in KS.350 respondents are selected and random sampling technique is applied considering location of project (market-based, home-based, and street sellers), locality (all KS localities, namely Omdorman, Karrari, Ombada, Khartoum, Jabalawlia, Bahri, Shargalneel) and type of activity (20 different activities are covered). Primary data are collected using a structured questionnaire and individual interviews held with female entrepreneurs in KS as well as by optical observation by visiting the respondents in their locations. Also to assess the performance of MFIs in Sudan,several MFIs are selected including the following: • Saving and Social Development Bank (SSDB) and Farmer Commercial Bank (FCB) as examples of banks providing microfinance; and • Youth Foundation for microfinance and the experience of “Amel” microfinance program, as examples of financial institution providing microfinance; Interviews were conducted with officials in these institutions and additional information was also obtainedfrom their reports.Secondary data are gathered from various sources including national surveys, censuses and previous studies. Both primary and secondary data are analysed using descriptive statistics and cross tabulation imbedded in Microsoft Excel. Major findings of the study show thatThe Central Bank of Sudan adopted the strategy of the microfinance and it opened an important path of social insurance, but the rate of the inflow of finance was less than the proposed rate of 12% of the inflow of finance, which was specified by the bank. It is also revealed thatthe reluctance of commercial banks to microfinance is due to the risks associated with microfinance and low returns. The findings of the survey reported that the lack of funds to finance investment or ongoing business operations is one of the main problems facing female entrepreneurs in Khartoum state. Results show that 63% of the women micro-entrepreneurs indicated that they didn’t take loans from banks or other financial institutions, while only 37% indicated that they took loans from banks or financial institutions. Nonetheless, all interviewees underlined their need for finance as a major constraint. Thosewho sought financial services from banks however are found to be satisfied and the majority confirmed that the funding helped them to succeed.Banks and funding institutions as well confirmed that, female entrepreneurs have succeeded in paying back their loans in due times with a repayment ratio of 74%among female entrepreneurs, which is considered high. |
| Keywords: | Sudan, Finance, Business cycles |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:7133&r=iue |
| By: | Asongu Simplice (Yaoundé/Cameroun); Andrés Antonio (Madrid/Spain) |
| Abstract: | In this paper, we examine global trajectories, dynamics, and tendencies of software piracy to ease the benchmarking of current efforts towards harmonizing the standards and enforcements of Intellectual Property Rights (henceforth IPRs) protection worldwide. Our empirical exercise is based on 15 different panel regressions, which together consists of 99 countries. The richness of the dataset allows us to disaggregate countries into fundamental characteristics of business software piracy based on income-levels (high-income, lower-middle-income, upper-middle-income and low-income), legal-origins (English common-law, French civil-law, German civil-law and, Scandinavian civil-law) and, regional proximity (South Asia, Europe & Central Asia, East Asia & the Pacific, Middle East & North Africa, Latin America & the Caribbean and, Sub-Saharan Africa). Our main finding suggest that, a genuine timeframe for standardizing IPRs laws in the fight against software piracy is most feasible within a horizon of 4.3 to 10.4 years. In other words, full (100%) convergence within the specified timeframe will mean the enforcements of IPRs regimes without distinction of nationality or locality within identified fundamental characteristics of software piracy. The absence of convergence (in absolute and conditional terms) for the World panel indicates that, blanket policies may not be effective unless they are contingent on the prevailing trajectories, dynamics and tendencies of software piracy. Policy implications and caveats are also discussed. |
| Keywords: | Piracy; Business Software; Software piracy; Intellectual Property Rights; Panel data; Convergence |
| JEL: | F42 K42 O34 O38 O57 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:14/011&r=iue |
| By: | Ricardo ROCHA GARCIA |
| Abstract: | Una caracterización de la informalidad del empleo cafetero, entendida como la no cotización de pensión, basada en el análisis de los datos del censo de población y las encuestas de hogares, así como de la información cualitativa obtenida de grupos focales realizados entre trabajadores y productores. La mayoría de la ocupación es informal, dado que la asistencia social es percibida como un sustituto de los pagos a la seguridad social y también debido a la insuficiencia de ingresos frente a la cotización mínima. La cotización de pensiones es más probable entre los trabajadores educados, hombres y jóvenes, donde hay presencia institucional del Ministerio del Trabajo y mejor desarrollo empresarial. La migración laboral desde municipios con alta (baja) informalidad la aumenta (reduce) en el municipio receptor. Así la formalización laboral podría ser promovida mediante una clara diferenciación entre la protección social y la asistencia social; a escala municipal proveyendo de más Inspecciones de Trabajo, también mejorando educación y productividad; revisando el mínimo de la cotización y estableciéndole incentivos, entre otros aspectos. |
| Keywords: | café, informalidad laboral, seguridad social, pensiones |
| JEL: | J43 J81 |
| Date: | 2014–07–18 |
| URL: | http://d.repec.org/n?u=RePEc:col:000118:011955&r=iue |