nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2014‒11‒28
five papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Segmentation and informality in Vietnam : a survey of the literature: country case study on labour market segmentation By Cling, Jean-Pierre; Razafindrakoto, Mireille; Roubaud, François
  2. Do remittances increase borrowing? By Ambrosius, Christian; Cuecuecha, Alfredo
  3. Regional determinants of firm entry in a developing country By Calá, Carla Daniela; Manjón-Antolín, Miguel; Arauzo-Carod, Josep-Maria
  4. Labor Productivity in Rural African Enterprises: Empirical Evidence from the LSMS-ISA By Nagler, Paula; Naudé, Wim
  5. The impact of ASEAN economic integration on occupational outlooks and skills demand By El Achkar Hilal, Souleima

  1. By: Cling, Jean-Pierre; Razafindrakoto, Mireille; Roubaud, François
    Abstract: Labour market segmentation is usually defined as the division of the labour markets into separate sub-markets or segments, distinguished by different characteristics and behavioural rules (incomes, contracts, etc.). The economic debate on the segmentation issue has been focusing in developed countries, and especially in Europe, on contractual segmentation and dualism.
    Keywords: labour market segmentation, employment, informal economy, informal workers, social protection, Viet Nam, segmentation du marché du travail, emploi, économie informelle, travailleurs informels, protection sociale, Vietnam, segmentación del mercado de trabajo, empleo, economía informal, trabajadores informales, protección social, Viet Nam
    Date: 2014
  2. By: Ambrosius, Christian; Cuecuecha, Alfredo
    Abstract: While recent literature has pointed out that migrants´ remittances have a positive impact on savings with financial institutions, findings with respect to access to and the use of loans have been ambiguous. This paper investigates whether the reception of remittances facilitates taking up loans from formal or informal sources among Mexican households and finds positive and statistically significant effects of remittances on borrowing and on the existence of debts. We address methodological concerns of selection bias and reverse causality through household fixed effects and an instrumental strategy that exploits distance to train lines and labor market conditions in the US as exogenous determinants of remittances.
    JEL: F24 D14 I15 O12
    Date: 2014
  3. By: Calá, Carla Daniela; Manjón-Antolín, Miguel; Arauzo-Carod, Josep-Maria
    Abstract: We analyse the determinants of firm entry in developing countries using Argentina as an illustrative case. Our main finding is that although most of the regional determinants used in previous studies analysing developed countries are also relevant here, there is a need for additional explanatory variables that proxy for the specificities of developing economies (e.g., poverty, informal economy and idle capacity). We also find evidence of a core-periphery pattern in the spatial structure of entry that seems to be mostly driven by differences in agglomeration economies. Since regional policies aiming to attract new firms are largely based on evidence from developed countries, our results raise doubts about the usefulness of such policies when applied to developing economies.
    Date: 2014
  4. By: Nagler, Paula (Maastricht University); Naudé, Wim (Maastricht University)
    Abstract: Although non-farm enterprises are ubiquitous in rural Sub-Saharan Africa, little is yet known about their productivity. In this paper we contribute to filling this gap by providing estimates of labor productivity in enterprises for Ethiopia, Malawi, Nigeria, and Uganda. Using the World Bank's LSMS-ISA database, we find that rural enterprises are on average less productive than those in urban areas, and that female-owned enterprises are less productive than male-owned enterprises. By estimating Heckman selection and panel data models, we find that education and access to credit are associated with higher labor productivity, while households that experience shocks operate less productive enterprises. Furthermore we provide evidence that enterprises that operate throughout the year are more productive. We conclude that gender, education, shocks, access to finance, and location matter for labor productivity in rural Africa, and that policy decisions tackling the shortcomings could significantly contribute to a better business environment and increased labor productivity.
    Keywords: entrepreneurship, informal sector, labor productivity, rural development, Sub-Saharan Africa
    JEL: J43 L26 M13 O13 O55 Q12
    Date: 2014–10
  5. By: El Achkar Hilal, Souleima
    Abstract: What is the potential impact of the ASEAN Economic Community 2015 on the occupational structure of ASEAN Member Countries? Building on the sectoral output and employment impacts of the AEC derived from a separate computable general equilibrium (CGE) model, this paper develops an innovative occupational projections model to examine the projected shifts in occupational demand and in the occupational structure of the economy to determine potential skills mismatches that may ensue. The paper identifies the occupations that are likely to have the highest demand as ASEAN economic integration progresses in six ASEAN Member Countries (Cambodia, Indonesia, Lao People’s Democratic Republic, the Philippines, Thailand and Viet Nam), with potential implications for the education, TVET and skills system in the countries. With the AEC likely to lead to an increase in both the demand for and supply of workers in occupations that are linked to the informal economy, the paper argues for the critical need to strengthen social protection systems in ASEAN Member Countries.
    Keywords: labour market, employment, labour demand, skill, interindustry shift, economic integration, regional cooperation, ASEAN countries, marché du travail, emploi, besoins en main-d'oeuvre, qualifications, mutation interindustrielle, intégration économique, coopération régionale, pays de l'ANASE, mercado de trabajo, empleo, necesidad de mano de obra, calificación, desplazamiento industrial, integración económica, cooperación regional, países del ASEAN
    Date: 2014

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