nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2022‒02‒28
five papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Earnings Inequality and Dynamics in the Presence of Informality: The Case of Brazil By Niklas Engbom; Gustavo Gonzaga; Christian Moser; Roberta Olivieri
  2. Does going cashless make you tax-rich? Evidence from India’s demonetization experiment By Das, S; Gadenne, L; Nandi, T; Warwick, R
  3. Recovery with distress: unpacking COVID-19 impact on livelihoods and poverty in Bangladesh By Hossain Zillur Rahman; Atiya Rahman; Md. Saiful Islam; Avinno Faruk; Imran Matin; Mohammad Abdul Wazed; Umama Zillur
  4. Flagship 3 Highlight 1: Research on COVID-19’s implications for informal markets and food safety By CGIAR Research Program on Agriculture for Nutrition and Health (A4NH)
  5. Analyse des Inégalités de Revenu au Mali By Paul Alkemade; Daniele Checchi; Siaka Cissé; Aminata Coulibaly; Anda David; Amadou Koné; Teresa Munzi; Gaston Sodio; Arouna Sougane

  1. By: Niklas Engbom; Gustavo Gonzaga; Christian Moser; Roberta Olivieri
    Abstract: Using rich administrative and household survey data spanning 34 years from 1985 to 2018, we document a series of new facts on earnings inequality and dynamics in a developing country with a large informal sector: Brazil. Since the mid-1990s, both inequality and volatility of earnings have declined significantly in Brazil’s formal sector. Higher-order moments of the distribution of earnings changes show cyclical movements in Brazil that are similar to those in developed countries like the US. Relative to the formal sector, the informal sector is associated with a significant earnings penalty and higher earnings volatility for identical workers. Earnings changes of workers who switch from formal to informal (from informal to formal) employment are relatively negative (positive) and large in magnitude, dispersed, negatively (positively) skewed, and less leptokurtic. Our results suggest that informal employment is an imperfect insurance mechanism.
    JEL: D31 D33 E24 E26 J31 J46 J62
    Date: 2022–01
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:29696&r=
  2. By: Das, S (Reserve Bank of India); Gadenne, L (University of Warwick, Institute for Fiscal Studies and CEPR); Nandi, T (Indian Institute of Science Education and Research (IISER), Kolkata); Warwick, R (Institute for Fiscal Studies)
    Abstract: This paper investigates the effect of electronic payments technology on firms’ tax compliance in a large developing economy. We consider India’s demonetization policy which, by limiting the availability of cash, led to a large increase in the use of electronic forms of payments. Using administrative data on firms’ tax returns and variation in the strength of the demonetization shock across local areas, we find that greater use of electronic payments leads to firms reporting more sales to the tax authorities. This effect is strong enough to explain roughly half of the large (11%) increase in reported sales observed during demonetization.
    Keywords: tax compliance, electronic payments, demonetization JEL Classification:H26, O23, H25
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:cge:wacage:605&r=
  3. By: Hossain Zillur Rahman; Atiya Rahman; Md. Saiful Islam; Avinno Faruk; Imran Matin; Mohammad Abdul Wazed; Umama Zillur
    Abstract: The social and ecomomic impact of COVID-19 has been deep, wide-ranging, and multi-dimensional. While anecdotal evidence of distress among the poor, particularly those with informal occupations, has been widespread, effective policy response has required real-time, researched data disaggregated for urban and rural populations and for various categories of the poor.
    Keywords: COVID-19, Livelihoods, Informal, Urban, Resilience, Poverty, Bangladesh
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2022-13&r=
  4. By: CGIAR Research Program on Agriculture for Nutrition and Health (A4NH)
    Keywords: WORLD; nutrition; health; agriculture; diet; food systems; healthier diet; COVID-19
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:fpr:annrep:2021a4nh_flagship3_highlight1&r=
  5. By: Paul Alkemade; Daniele Checchi; Siaka Cissé; Aminata Coulibaly; Anda David; Amadou Koné; Teresa Munzi; Gaston Sodio; Arouna Sougane
    Abstract: In discussions on inequality in Africa, Mali often appears as an exception, being the country with the lowest level of inequality in the West African sub-region. In this paper, we analyse the dynamics of inequality in the country and try to understand the role played by the different sources of income. To do so, we use the LIS harmonized version of the 3 waves of the Modular and Permanent Household Survey (MPHS) and our results show an increase in inequality in 2019. Furthermore, we find that income inequalities are mainly due to the duality of the labour market, which then reinforces spatial inequalities. Given the prevalence of the informal sector and the very limited existence of social safety nets, social protection does not play its role in reducing inequalities.
    Date: 2021–10
    URL: http://d.repec.org/n?u=RePEc:lis:liswps:818&r=

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