nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2016‒10‒09
three papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Measuring the effect of informal work and domestic activities on poverty and income inequality in Turkey By Armagan Tuna Aktuna Gunes
  2. Domestic activity patterns pertaining to households and informality in Turkey By Armagan Tuna Aktuna Gunes
  3. Lost in Translation: Organizational Practices and Formal Employment of Women in India By Ranganathan, Aruna

  1. By: Armagan Tuna Aktuna Gunes (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)
    Abstract: In this article, we propose to calculate the size of the population living in poverty, measured through uni- and multidimensional poverty indices, and the Gini coefficient using extended full (time plus money and informal earnings) incomes, from cross-sectional data covering 2003-2006 in Turkey. Thus monetary incomes are corrected by adding the earnings gathered from informal activities and the monetary values of time spent in domestic activities into declared incomes, producing an error-free estimate of the size of the population living in poverty and the Gini ratio overall. To show the effect informal activities with the domestic ones have on poverty, changes in the joint probability of being in informal activity while being considered poor is measured by means of a bivariate probit model using extended (money plus informal earnings) income and extended full incomes.
    Abstract: Dans cet article, nous proposons de calculer la taille de la pauvreté, mesurée par l'indice de pauvreté uni- et multidimensionnelle, et le coefficient de Gini en se basant sur les revenus complets-élargis (le temps plus les revenus monétaires et informels) à partir de données transversales couvrant les années 2003-2006 en Turquie. Ainsi, les revenus monétaires sont corrigés en ajoutant les ressources monétaires obtenus grâce aux activités informelles et les valeurs monétaires du temps consacré aux activités domestiques dans les revenus déclarés, ce qui permet une estimation sans erreur pour la taille de la population vivant dans la pauvreté et le coefficient de Gini global. Afin de mieux montrer l'effet des activités informelles avec celles domestiques sur la pauvreté, les changements dans la distribution conjointe de probabilité de travailler dans le secteur informel et d'être considérés comme pauvres sont mesurés par un modèle probit bidimensionnel en utilisant les revenus élargis (les revenus monétaires plus informels) et les revenus complets-élargis.
    Keywords: informal earnings,domestic actvities,poverty,Gini coefficient,revenus informels,activités domestiques,pauvreté,coefficient de Gini
    Date: 2015–02
  2. By: Armagan Tuna Aktuna Gunes (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)
    Abstract: We investigate underlying determinants of informality by representing the Turkish Time Use Survey in 2006 and the Household Budget Surveys for the years from 2003 to 2006 conducted by Turkish Statistical Institute. Following the descriptive methodology proposed by Gronau and Hamermesh (2006), the main focus is to describe the household data by highlighting the main features and revealing the relative importance of expenditures of time and goods through an exhaustive set of commodities and assign time and goods inputs to each in order to measure their relative goods intensities. The analysis of the evolution of commodity per time spent during 2003, 2004, 2005 and 2006 reveals the fact that the average value for total expenditures per total time spent show increases in a decreasing trend (concave shape) over these years. Supposing that the average time spent among these years in constant on average (meaning that they did not really change from one year to another), the result of this accounting support the hypotheses that the amount of consumption present in household production during these years decreased. Our findings could be used as guides to better understanding the socio-economic conditions in developing countries and to obtain more accurate measurements of the size of informality, poverty and income inequalities.
    Abstract: Nous enquêtons sur les déterminants sous-jacents de l'informalité en représentant l'enquête Emploi du temps 2006 et les enquêtes Budget des familles de 2003 à 2006 menées par l'Institut Statistique de la Turquie. Conformément à la méthodologie descriptive proposée par Gronau et Hamermesh (2006), l'objectif principal est de décrire les données sur les ménages en mettant en évidence les principales caractéristiques et en révélant l'importance relative des dépenses du temps et des biens à travers un ensemble de produits et les entrées des biens et le temps assigné pour chacun afin de mesurer leurs intensités de biens relatifs. L'analyse de l'évolution des produits par les dépenses du temps pendant les années 2003, 2004, 2005 et 2006 révèle le fait que l'augmentation des valeurs moyennes pour les dépenses monétaires totales par celles temporelles baisse (en forme concave) au cours de ces années. En supposant que les dépenses du temps moyens pendant ces années sont constantes (ce qui signifie qu'ils n'ont vraiment pas changé d'une année à l'autre), le résultat de cette analyse soutient l'hypothèse que la consommation actuelle de la production des ménages au cours de ces années a diminué. Nos résultats pourraient être utilisés comme guides pour mieux comprendre les conditions socio-économiques dans les pays en développement et pour obtenir des mesures plus précises de la taille de l'informalité, de la pauvreté et des inégalités de revenus.
    Keywords: domestic activities,time use,goods intensity,informality
    Date: 2015–02
  3. By: Ranganathan, Aruna (Stanford University)
    Abstract: Sociological research has argued that economic globalization and the rise of formal job opportunities is transforming the lives of women in developing countries. An underlying assumption in this research is that women who have never formally worked before are uniformly able to capitalize on the employment opportunities created by foreign investment and successfully transition into formal employment. In this article, I question this assumption and hypothesize that local employer practices mediate whether women transition into formal employment and are ultimately transformed by globalization. I study a large garment factory in India and examine the effect of one organizational practice, the assignment of trainers to new joiners, on whether women successfully sustain formal employment. Using a combination of unique longitudinal data and exogenous variation in trainer assignment, I find that first-time women employees assigned to experienced trainers are 20% more like to capitalize on their job opportunities and build careers in formal employment. Additionally, I show that experienced trainers impact the transition of women into formal employment not by imparting job-related skills or organizational identification, but by inculcating "work readiness" in their trainees, which I define as essential skills needed to survive at work including an understanding of self-presentation, interpersonal communication, work-life separation and self-reliance. These findings have implications for research on the employment of women in developing economies as well as for the role of organizational practices in affecting employee career outcomes.
    Date: 2015–05

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