nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2022‒01‒17
two papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Observing the Evolution of the Informal Sector from Space: A Municipal Approach 2013-2020 By Rangel González Erick; Irving Llamosas-Rosas
  2. The gender productivity gap: Evidence from the Indian informal sector By Ira N. Gang; Rajesh Raj Natarajan; Kunal Sen; Myeong-Su Yun

  1. By: Rangel González Erick; Irving Llamosas-Rosas
    Abstract: This document presents an alternative to measure informal economic activity at the municipal level for the 2013-2020 period in Mexico. Using satellite images of nightlight and microdata from the 2019 Economic Census, the formal and informal Value Added at the municipal level is estimated using a modified version of the model proposed by Tanaka and Keola (2017). Although there are some measurements in Mexico of informal economic activity, these are not available at the municipal level or on an annual basis. The results indicate that at the national level, most of the municipalities show decreases in their levels of informal activity during the 2013-2019 period, with the North and North central regions concentrating a higher proportion of these, while in the Center the majority of the municipalities remained unchanged in the percentage of informal Value Added. In contrast, an important part of the Southern municipalities registered increases in the percentage of their informal activity during the same period.
    JEL: E01 E26 C53 C55 O54
    Date: 2021–12
  2. By: Ira N. Gang; Rajesh Raj Natarajan; Kunal Sen; Myeong-Su Yun
    Abstract: We examine the patterns and correlates of the productivity gap between male-owned and female-owned firms for informal enterprises in India. Female-owned firms are on average 45 per cent less productive than male-owned firms, with the clearest productivity gaps observed at the lower end of the productivity distribution. Using decomposition methods, we find that about 73 per cent of the productivity gap can be explained by structural effect, with the remainder being due to differences in observable characteristics as captured by composition effect.
    Keywords: Gender, Productivity gap, India, Decomposition methods, Informal sector
    Date: 2021

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