nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2021‒04‒12
four papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Labor Informality and Credit Market Accessibility By Alina Malkova; Klara Sabirianova Peter; Jan Svejnar
  2. Housing supply in the presence of Iiformality By Sant'Anna, Marcelo Castello Branco; Iachan, Felipe Saraiva; Guedes, Ricardo Brito
  3. Does digitalisation in public services reduce tax evasion? By Strango, Cristina
  4. L’Economie Informelle en Algérie By BENABBOU, Hassiba; BELBACHIR, Gouraya; BELBACHIR, Hadjira

  1. By: Alina Malkova; Klara Sabirianova Peter; Jan Svejnar
    Abstract: The paper investigates the effects of the credit market development on the labor mobility between the informal and formal labor sectors. In the case of Russia, due to the absence of a credit score system, a formal lender may set a credit limit based on the verified amount of income. To get a loan, an informal worker must first formalize his or her income (switch to a formal job), and then apply for a loan. To show this mechanism, the RLMS data was utilized, and the empirical method is the dynamic multinomial logit model of employment. The empirical results show that a relaxation of credit constraints increases the probability of transition from an informal to a formal job, and improved CMA (by one standard deviation) increases the chances of informal sector workers to formalize by 5.4 ppt. These results are robust in different specifications of the model. Policy simulations show strong support for a reduction in informal employment in response to better CMA in credit-constrained communities.
    Date: 2021–02
  2. By: Sant'Anna, Marcelo Castello Branco; Iachan, Felipe Saraiva; Guedes, Ricardo Brito
    Abstract: We study housing supply in markets where informal housing is common. Using a combination of census and satellite data, we estimate housing supply for more than 90 metropolitan areas in Brazil. We find that widespread informal housing increases the housing supply elasticity, partially offsetting the downward pressure of geographical constraints. Our empirical approach is guided by a monocentric city model that includes informal housing. Our identification strategy relies on the use of two novel instruments, combining demographic data and public land ownership. As an illustration of the approach, we use the supply elasticity estimates to forecast the response of future housing prices to natural population growth
    Date: 2021–03–24
  3. By: Strango, Cristina
    Abstract: The aim of paper is to investigate the impact of digitalisation from public services on tax evasion. The analysis targets the European Union 27 (EU-27) member states over the period 2015-2019 by using panel estimators. The findings prove a nonlinear relationship between digitalisation from public services and tax evasion by U-shape. More precisely, the acceleration of digitalisation in public services reduces the level of tax evasion up to a certain point. Once the acceleration reaches that point, the level of tax invasion increases once again.
    Keywords: tax evasion, digitalisation, EU27, panel estimations
    JEL: C23 C89 H26
    Date: 2021–03–28
  4. By: BENABBOU, Hassiba; BELBACHIR, Gouraya; BELBACHIR, Hadjira
    Abstract: The globalization of many countries is largely the informal economy in Algeria. Although there is a gap between the different estimated studies, their integration into the formal economy seems obvious, so it remains necessary to find the applicable strategy for their participation in growth indicators after the fall in oil prices. A profit with an increase in GDP, which reached 25.41% of gross domestic product.
    Keywords: Economy, Formal Economy, Informal Economy, Algeria
    JEL: E22 E26
    Date: 2021–01–14

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