nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2020‒02‒17
five papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Informal work in sub-Saharan Africa: Dead end or steppingstone? By Sen Kunal; Schotte Simone; Danquah Michael
  2. Extending Pension Coverage to the Informal Sector in Africa By Guven,Melis U.
  4. Dishonesty and Risk-Taking: Compliance Decisions of Individuals and Groups By Fochmann, Martin; Kocher, Martin G.; Müller, Nadja; Wolf, Nadja
  5. Efectos sobre la Oferta de Trabajo de la Extensión del Seguro de Salud a los Cónyuges de los Trabajadores Formales By Cecilia Parada

  1. By: Sen Kunal; Schotte Simone; Danquah Michael
    Abstract: Despite rapid economic growth in recent decades, informality remains a persistent phenomenon in the labour markets of many low- and middle-income countries. A key issue in this regard concerns the extent to which informality itself is a persistent state.Using panel data from Ghana, South Africa, Tanzania, and Uganda, this paper presents one of the very few analyses providing evidence on this question in the context of sub-Saharan Africa. Our results reveal an important extent of heterogeneity in the transition patterns observed for workers in upper-tier versus lower-tier informality.Given the limited alternative job opportunities available, particularly to those in lower-tier informal self-employment who often remain locked in a situation of inferior pay and conditions, specific policies that seek to enhance the livelihoods of workers in this most disadvantaged segment may be more relevant in the sub-Saharan context than policies that aim to reduce the regulatory barriers to formalization.
    Keywords: Informality,Sub-Saharan Africa,Labour market dynamics,Labour market segmentation
    Date: 2019
  2. By: Guven,Melis U.
    Abstract: The coverage of pension systems in the Africa region is limited to the small segment of the population in the formal sector. Coverage is thin partly because traditional contributory pension schemes are not responding to the needs of the informal sector. As a result, a large share of the region?s adult population has no access to contributory pension schemes during their working lives. This means they will not be eligible for a pension. It also means the elderly coverage gap will persist in most countries. Expanding coverage to a larger group of workers is especially important because the elderly is now often cared for by their children. As the children move to cities, their ties to the elderly and home villages weaken. As a result, the elderly may be left behind with fewer resources.
    Keywords: Labor Markets,Social Protections&Assistance,Inequality,Health Care Services Industry
    Date: 2019–07–22
  3. By: DebabrataBasu
    Abstract: In most Indian cities the urban poor survive by working in the informal sector. Street vending provides job opportunity and means of livelihood to the urban poor but Urban Local Bodies consider it as illegal activity so far. In 2004, first time, Government of India recognizes vendor’s role in local economy after so many litigations and Supreme Court verdict in favour of vendors. National Policy on Urban Street Vendor, 2004 and 2009, Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 are some of the initiatives taken by the Government. Still their status has not been changes as it was prior to 2004. Key Words: Informal Sector, Street Vendors, Social Security, Legal Rights Policy
    Date: 2019–12
  4. By: Fochmann, Martin (Freie Universität Berlin and University of Cologne); Kocher, Martin G. (Institute for Advanced Studies, Vienna, University of Vienna, and University of Gothenburg); Müller, Nadja (University of Cologne); Wolf, Nadja (University of Hannover)
    Abstract: Unethical behavior in organizations is usually associated with the risk of negative consequences for the organization and for the involved managers if being detected. The existing experimental literature in economics has so far mainly focused on the analysis of unethical behavior in environments that involve no fines or similar monetary consequences. In the current paper, we use a tax compliance framework to study (un-)ethical behavior of individuals and small groups. Our results show that groups are clearly less compliant than individuals. The risk of being detected is the most important aspect in the group communication process when deciding on compliance.
    Keywords: Dishonesty, lying, compliance, risk-taking, group decisions, communication, norms, experiment
    JEL: C91 C92 D03 H26
    Date: 2019–08
  5. By: Cecilia Parada (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS), IIE-FCE, Universidad Nacional de La Plata and University of Nottingham)
    Abstract: A partir de diciembre de 2010 el Seguro de Salud en Uruguay se extiende a los cónyuges de los trabajadores formales. Esta extensión podría modificar los incentivos laborales respecto a la ocupación y la formalidad de las personas en pareja, en particular, dependiendo del estatus de formalidad del cónyuge. Es decir, para aquellas personas con cónyuge formal, al disminuir la utilidad relativa de estar ocupado en el sector formal respecto a la situación previa a la política, se espera que tengan incentivos a no estar ocupados o a hacerlo sin estar registrados. Para las personas con cónyuge informal o no ocupado, se produce el efecto contrario, aumentando la utilidadrelativadeestarocupadoenelsectorformalrespectoalasituaciónanterior y, por lo tanto, se esperarían incentivos positivos sobre la ocupación y formalidad. En este trabajo se estiman los posibles efectos comparando en el tiempo a las personas afectadas por la política con aquellos semejantes pero no afectados, mediante una metodología de diferencias en diferencias, a partir de datos de las Encuestas Continuas de Hogares de Uruguay. Los resultados sugieren que la expansión del seguro introdujo incentivos a que las personas en pareja se muevan entre formalidad/informalidad y, en menor medida,entre el empleo/no empleo,siendo las mujeres quienes ajustan en mayor magnitud sus decisiones de inserción laboral respecto a las características de la ocupación de su pareja.
    Date: 2020–01

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