nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2021‒11‒29
five papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Estimating Tax Noncompliance among the Self-Employed – Evidence from Pleasure Boat Registers By Per Engström; Johannes Hagen; Edvard Johansson
  2. Declining Labor Market Informality in Turkey: Unregistered Employment and Wage Underreporting By Yusuf Kenan Baðir; Muserref Kucukbayrak; Huzeyfe Torun
  3. Using Branding to Signal Quality in Informal Markets. Evidence from an Experimental Auction in the Sahel. By Ricker-Gilbert, Jacob; Moussa, Bokar; Abdoulaye, Tahirou
  4. Informal Land Arrangements between Refugees and Host Communities in Northern Uganda: Do Social Preferences Matter? By Adong, Annet; Kirui, Oliver; Kornher, Lukas
  5. La mesure du secteur informel dans un département français d’Outre-mer : le cas de Mayotte By Claire ZANUSO; Sylvain Daubrée,; François Roubaud,; Constance Torelli

  1. By: Per Engström (Uppsala University); Johannes Hagen (Jönköping University); Edvard Johansson (Åbo Akademi University)
    Abstract: We improve upon the Pissarides-Weber method for estimating tax evasion among the self-employed by utilizing unique register-based consumption measures from the Swedish and Finnish mandatory registers for pleasure boats. The register data allows for more detailed and statistically powered analyses than survey-based applications. We evaluate i) the key assumption of equal preferences between self-employed and wage earner households, and ii) the functional form assumptions in the estimated Engel curves. Our results indicate overall levels of hidden incomes that are roughly in line with previous studies. However, the functional form analysis shows that the estimated sizes of income underreporting in absolute monetary amounts are almost constant over reported income levels, whereas previous studies have assumed that the underreporting is proportional to income. The results from the preference analysis – in which we compare households that will become self-employed in the near future with households that will remain wage earners – are mixed; the analysis shows that the two types of households have insignificant (Finland) or economically small (Sweden) preference differences. However, when we use engine power as a price proxy, the preference differences are substantially larger in both countries.
    Keywords: tax evasion, income underreporting, pleasure boats, Engel curves, permanent income, self-employment
    JEL: D12 H24 H25 H26
    Date: 2021–03
  2. By: Yusuf Kenan Baðir; Muserref Kucukbayrak; Huzeyfe Torun
    Abstract: This paper examines the trends in labor market informality in Turkey at two margins, unregistered employment and wage underreporting. We first document the stylized facts about the informal employment and its change over the past 15 years from 2004 to 2018. While doing this, we examine the heterogeneity in the informality across regions, sectors, firm properties and worker characteristics. Second, we decompose the change in the informality rate into its components using the Oaxaca-Blinder methodology. We find that the workforce composition change in gender, age, education, occupation, and industries explains half of the decline in the informality rate from 2004 to 2018. Finally, we analyze the wage underreporting behavior in Turkish labor market using both survey data and social security registry. We show that there has been a gap between the wages earned and the wages declared to Social Security Institution among registered employees. However, this discrepancy has declined significantly in recent years.
    Keywords: Informal employment, Wage underreporting, Turkey
    JEL: J20 J21 J31
    Date: 2021
  3. By: Ricker-Gilbert, Jacob; Moussa, Bokar; Abdoulaye, Tahirou
    Keywords: Marketing
    Date: 2021–08
  4. By: Adong, Annet; Kirui, Oliver; Kornher, Lukas
    Keywords: Land Economics/Use
    Date: 2021–08
  5. By: Claire ZANUSO; Sylvain Daubrée,; François Roubaud,; Constance Torelli
    Abstract: En 2015, pour faire face au besoin d’informations sur l’activité économique à Mayotte, l’Insee a complété son dispositif d’enquêtes auprès des entreprises par une enquête spécifique afin d’appréhender le secteur informel et de pouvoir quantifier le poids de ce secteur dans l’économie mahoraise. Compte-tenu des caractéristiques économiques et sociales de Mayotte, proches de celles d’un pays en développement (PED), l’approche retenue par l’Insee, a été inspirée de la méthodologie des enquêtes 1-2-3 développée par des chercheurs de l’Institut de recherche pour le développement (IRD-DIAL). Ce type d’enquêtes mixtes n’avait, à ce jour, jamais été conduit sur un territoire relevant d’un pays développé.
    Keywords: Mayotte
    JEL: Q
    Date: 2021–11–08

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