|
on Informal and Underground Economics |
| By: | Rafael Dix-Carneiro; Brian K. Kovak |
| Abstract: | We use both longitudinal administrative data and cross-sectional household survey data to study the margins of labor market adjustment following Brazil's early 1990s trade liberalization. We document how workers and regional labor markets adjust to trade-induced changes in local labor demand, examining various adjustment margins, including earnings and wage changes; interregional migration; shifts between tradable and nontradable employment; and shifts between formal employment, informal employment, and non-employment. Our results provide insight into the regional labor market effects of trade, and have important implications for policies that address informal employment and that assist trade-displaced workers. |
| JEL: | F14 F16 J46 J61 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23595&r=iue |
| By: | Nga Le Thi Quynh (UNU-MERIT, and Maastricht University); Groot, Wim (TIER, and CAPHRI School for Public Health and Primary Care, Maastricht University); Tomini, Sonila M. (UNU-MERIT, and Maastricht University); Tomini, Florian (Amsterdam School of Economics, University of Amsterdam,) |
| Abstract: | This study provides a systematic review of empirical evidence on the labour supply effects of health insurance. The outcomes in the 63 studies reviewed include labour supply in terms of hours worked and the probability of employment, self-employment and the level of economic formalisation. One of the key findings is that the current literature is vastly concentrated on the US. We show that spousal coverage in the US is associated with reduced labour supply of secondary earners. The effect of Medicaid in the US on labour supply of its recipients is ambiguous. However we have initial evidence of labour supply distortion caused by Children's Health Insurance Program, Affordable Care Act and other public health insurance expansions. A tentative result is that dependent young adults in the US who can access health insurance via their parents' employer have lower labour supply through fewer hours worked while keeping the same employment probability. The employment-coverage link is an important determinant of labour supply of people with health problems. The same holds for self-employment decisions. Universal coverage may create either an incentive or a disincentive to work depending on the design of the system. Finally, evidence on the relationship between health insurance and the level of economic formalisation in developing countries is fragmented and limited. |
| Keywords: | health insurance, labour supply, labour market |
| JEL: | I13 J22 |
| Date: | 2017–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2017017&r=iue |
| By: | Fossen, Frank M.; Rees, Ray; Rostam-Afschar, Davud; Steiner, Viktor |
| Abstract: | We investigate how personal income taxes affect the portfolio share of personal wealth that entrepreneurs invest in their own business. In a reformulation of the standard portfolio choice model that allows for underreporting of private business income to tax authorities, we show that a fall in the tax rate may increase investment in risky entrepreneurial business equity at the intensive margin, but decrease entrepreneurial investment at the extensive margin. To test these hypotheses, we use household survey panel data for Germany eliciting the personal wealth composition in detail in 2002, 2007, and 2012. We analyze the effects of personal income taxes on the portfolio shares of six asset classes of private households, including private business equity. In a system of simultaneous demand equations in first differences, we identify the tax effects by an instrumental variables approach exploiting tax reforms during our observation period. To account for selection into entrepreneurship, we use changes in entry regulation into skilled trades. Estimation results are consistent with the predictions of our theoretical model. An important policy insight is that lower taxes drive out businesses that are viable only due to tax avoidance or evasion, but increase investment in private businesses that are also worthwhile in the absence of taxes. |
| Keywords: | taxation,entrepreneurship,portfolio choice,investment |
| JEL: | H24 H25 H26 L26 G11 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hohdps:122017&r=iue |
| By: | Francisco Szederkenyi; Rodrigo Vergara (Centro de Estudios Públicos, Santiago) |
| Abstract: | Un tema importante de discusión en los últimos años ha sido el cambio en la composición del empleo. Ello en vista del dinamismo que se ha observado en el trabajo por cuenta propia y el menor crecimiento o caída en el trabajo asalariado. Esto llevaría aparejado una mayor precariedad del empleo, en cuanto en promedio los asalariados tendrían mejores condiciones de trabajo que los trabajadores por cuenta propia. En este trabajo se hace un análisis grueso de las propiedades cíclicas del empleo en Chile. Se usa la encuesta de la Universidad de Chile, porque, a diferencia de la del INE, no ha sufrido cambios metodológicos. Esto nos permite tener una serie más larga al hacer el análisis. Se trata de un análisis simple de correlaciones. No se controla por otras variables. Se define como procíclica una variable cuyo cambio porcentual se correlaciona positivamente con el crecimiento del PIB o cuya participación dentro del total sube en la parte alta del ciclo. Se concluye, en primer lugar, que el comportamiento procíclico del trabajo asalariado y contracíclico del por cuenta propia no es sólo de este último tiempo, si no que se observa en las distintas etapas del ciclo de las últimas dos décadas. Específicamente, se encuentra que en los momentos de alto crecimiento aumenta la participación de trabajadores asalariados y disminuye la de los cuenta propia. Lo inverso sucede en períodos de desaceleración. Asimismo, se encuentra que este fenómeno se ha agudizado en los últimos años. En otras palabras, en lo más reciente el crecimiento del trabajo asalariado se ha hecho más procíclico y el por cuenta propia más contracíclico. En segundo lugar, se analizan los cambios en el empleo, tanto asalariado como por cuenta propia, según distintas clasificaciones: grupo ocupacional, actividad económica, edad, género y nivel de educación. Se aprecia que entre los asalariados, quienes tienen el comportamiento más procíclico son los empleados, que trabajan en construcción, comercio, industria, servicios de gobierno y financieros, y servicios comunales y sociales, de todos los tramos etarios pero más significativamente los más jóvenes, mujeres, y principalmente con educación universitaria y en cierto grado también con educación media y básica. En cuanto a los flujos de empleo, en los cuenta propia se observa que los grupos que siguen más el patrón cíclico del total de cuenta propia (es decir, contracíclico) son los que trabajan en los sectores de servicios personales y hogares, y en agricultura, en general en grupos más jóvenes y más recientemente en grupos de edad media, sin grandes diferencias entre hombres y mujeres, aunque en el último tiempo con más incidencia de hombres, y con educación básica y media. |
| Keywords: | self employment, informal labor market, labor mobility |
| JEL: | J62 J46 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpt:wpaper:457&r=iue |
| By: | DOMBOU T., Dany R. |
| Abstract: | This study investigates the influence of institutional pressures on the level of entrepreneurship in Sub-Saharan Africa (SSA). It assumes that in sub-Saharan Africa, countries with the highest levels of entrepreneurship rates tend to have the highest levels of economic freedom. Data are on 37 SSA countries and come from The Heritage Foundation and the World Data Indicator. Equations are estimated using the ordinary least squares method. The main results show that a less restrictive institutional environment tends to encourage entrepreneurship. Low levels of fiscal pressure significantly encourage entrepreneurship up to 114% of the levels of tax freedom. The results also show that women entrepreneurs are much more sensitive to tax pressure than their male counterparts. Finally, the results show that entrepreneurs tend to evolve in the informal sector, or to submit false accounting balances to the tax authorities in order to avoid tax burden (Women entrepreneurs in this case being either more entrepreneurial than their male counterparts or more Honest), which has a negative impact on their ability to benefit from external funding. The main recommendation goes to governments, they must reduce the tax pressures linked to small activities. And to do this, they must order microeconomic studies to determine which taxes to reduce and at which level. |
| Keywords: | Entrepreneurship; Economic freedom; Tax burden; Financial inclusion; gender; |
| JEL: | E02 L26 O43 O55 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:80242&r=iue |