nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2021‒07‒12
five papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Taxpayer's Compliance: Towards Voluntary Compliance By Dian Purnama Sari
  2. The Belt and Road Initiative and the Ticking Time Bomb of Offshore Tax Evasion and Avoidance By Michael Tyrala
  3. Informal employment and wages in Poland By Jacek Liwinski
  4. Women at Work in the United States Since 1860: An Analysis of Unreported Family Workers By Chiswick, Barry R.; Robinson, RaeAnn Halenda
  5. Informality and pension reforms in Bolivia: The case of Renta Dignida By Carla Canelas; Miguel Niño-Zarazúa

  1. By: Dian Purnama Sari (Faculty of Business, Widya Mandala Surabaya Catholic University, Indonesia Author-2-Name: Novrida Qudsi Lutfillah Author-2-Workplace-Name: "Malang State Polytechnic, Soekarno Hatta Street no. 9, 65144, Malang, Indonesia " Author-3-Name: Sri Rahayu Author-3-Workplace-Name: University of Jambi, Raya Jambi – Muara Bulian Street KM 15, 36122, Jambi, Indonesia Author-4-Name: Yudi Author-4-Workplace-Name: University of Jambi, Raya Jambi – Muara Bulian Street KM 15, 36122, Jambi, Indonesia Author-5-Name: Rahayu Author-5-Workplace-Name: University of Jambi, Raya Jambi – Muara Bulian Street KM 15, 36122, Jambi, Indonesia Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - This study aims to criticize the meaning of taxpayer's compliance. Methodology – The paradigm used in this study is a qualitative design through dramaturgy theory. Findings and Novelty – The result of the study indicates that the present taxpaying compliance is still equivocal with multi-interpretation. The term ""less compliant"" implicating compliance by a condition, neither completely compliant nor completely incompliant. The voluntary compliance targeted in taxpaying is purely determined by the morality of each taxpayer. The novelty of this research is the topic very interesting since there have been many topics talking about tax planning, self-corruption by taxpayers (an effort to reduce the reported amount of income tax), or some efforts to analyze influencing factors on the taxpayer's compliance, but does not study the definitions form taxpayer perspective. Type of Paper - Empirical"
    Keywords: Tax; Taxpayer; Compliance; Voluntary Compliance; Awareness; Morality.
    JEL: H1 H20
    Date: 2021–06–30
  2. By: Michael Tyrala (Postdoctoral Fellow, Institute of Emerging Market Studies; The Hong Kong University of Science and Technology)
    Abstract: Offshore tax evasion and avoidance represent a serious threat to the financial and reputational integrity of the BRI. Most BRI countries are not party to either of the two global standards for financial and tax transparency, which leaves them particularly vulnerable to the threat. China's single-minded focus on reducing tax frictions for BRI cross-border investment has led it to emphasize other tax priorities rather than financial and tax transparency, further exacerbating the threat. China should give high priority to financial and tax transparency in BRI countries, and lead the way by going beyond the two global standards wherever appropriate, such as through public disclosures and extensive non-reciprocal sharing of information.
    Keywords: Belt and Road, China, Financial Development, Global Economy
    Date: 2020–07
  3. By: Jacek Liwinski
    Abstract: This paper tries to identify the wage gap between informal and formal workers and tests for the two-tier structure of the informal labour market in Poland. After controlling for observed heterogeneity, I find that on average informal workers earn less than formal workers, both in terms of monthly earnings and hourly wage.
    Keywords: informal workers, undeclared employment, wages, wage penalty, PSM
    JEL: J24 J31 J46
    Date: 2020
  4. By: Chiswick, Barry R.; Robinson, RaeAnn Halenda
    Abstract: Estimated labor force participation rates among free women in the pre-Civil War period were exceedingly low. This is due, in part, to cultural or societal expectations of the role of women and the lack of thorough enumeration by Census takers. This paper develops an augmented labor force participation rate for free women in 1860 and compares it with the augmented rate for 1920 and today. Our methodology identifies women who are likely providing informal and unenumerated labor for market production in support of a family business, that is, unreported family workers. These individuals are not coded in the original data as formally working, but are likely to be engaged in the labor force on the basis of the self-employment of other relatives in their household. Unreported family workers are classified into four categories: farm, merchant, craft, and boardinghouse keepers. Using microdata, the inclusion of these workers more than triples the free female labor force participation rate in the 1860 Census from 16 percent to 57 percent, more than doubles the participation rate in the 1920 Census from 24 percent to 50 percent, and has a trivial effect on the currently measured rate of 56 percent (2015-2019 American Community Survey). This suggests that rather than a steep rise from a very low level in the female labor force participation rate since 1860, it has in fact always been high and fairly stable over time. In contrast, the effect of including unreported family workers in the male augmented labor force participation rate is relatively small.
    Keywords: Women,Labor Force Participation,Unreported Family Workers,Occupational Status,Unpaid Workers,Self-Employment,1860 Census,1920 Census,American Community Survey
    JEL: N31 J16 J21 J82
    Date: 2021
  5. By: Carla Canelas; Miguel Niño-Zarazúa
    Abstract: How social protection programmes affect work choices is a question that has been at the centre of labour economics research for decades. More recently, a scant literature has focused on the effects of social protection on work choices and informal employment in the context of low- and middle-income countries. This paper contributes to this scant literature by examining the effect of Bolivia's Renta Dignidad , a universal non-contributory old-age pension that covers all Bolivians aged 60 years and older.
    Keywords: Social protection, Informal work, Bolivia, Non-contributory pensions, Social pensions
    Date: 2021

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