nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2016‒01‒18
two papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Value-Addes Tax and Shadow Economy : the Role of Input-Output Linkages (revision of CentER Discussion Paper 2013-036) By Hoseini, Mohammad
  2. Informalidad laboral y calidad del empleo en la Región Pacífica colombiana By Luis Armando Galvis-Aponte; Gerson Javier Pérez-Valbuena

  1. By: Hoseini, Mohammad (Tilburg University, Center For Economic Research)
    Abstract: Under the VAT, formal traders report their purchases to the administration for a<br/>deduction in their VAT bill. This paper models this third-party reporting feature of the VAT in an input-output economy and quantifies it among different activities using a forward linkages index. The administration can reduce the size of shadow economy by reallocating visiting audits to backwardly linked activities and cross-checking VAT payments with input credit claims in forwardly linked activities. Empirical evidence from Indian service sector justifies the assumptions and suggests a significant increase in the tax compliance of forwardly linked activities following VAT adoption in 2003.
    Keywords: Value-added tax; Informality; Tax enforcement; Linkage analysis
    JEL: H26
    Date: 2015
  2. By: Luis Armando Galvis-Aponte; Gerson Javier Pérez-Valbuena
    Abstract: El objetivo del presente documento es elaborar un diagnóstico sobre la informalidad laboral y su relación con la calidad del empleo en la región Pacífica colombiana. Los resultados muestran que en el Pacífico dos de cada tres empleados se ubican en el sector informal. Esta observación tiene implicaciones claves para la calidad del empleo y el bienestar de la población. En efecto, la región Pacífica presenta baja calidad del empleo, que es más crítica para los individuos con bajos niveles educativos, los empleados domésticos y, por ubicación geográfica, para los individuos del departamento de Nariño. ******ABSTRACT: The purpose of this document is to conduct an analysis of labor informality and quality of employment in the Pacific region in Colombia. The results show that on average two out of three individuals are employed in the informal sector. This finding has key implications for the quality of employment and well-being of the population. Indeed, the Pacific region has low quality jobs, which is more dramatic for individuals with low education levels, domestic workers, and for individuals from the department of Nariño.
    Keywords: mercado laboral, informalidad, condiciones laborales, Pacíficocolombiano
    JEL: J01 J81 R23
    Date: 2015–12–24

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