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on Informal and Underground Economics |
| By: | Ozer, Yusuf |
| Abstract: | In this paper, I investigate the relationship between informal sector size and various institutional quality variables: government stability, external conflict, internal conflict, corruption control, military influence over politics, religious tensions, ethnic tensions, law-and-order, democratic quality, and bureaucratic accountability. To this end, I use annual cross-country panel data covering 130 countries from 1990 to 2018. Having conducted a correlation analysis, I find that the size of informal economy and institutional quality indicators are inversely linked, and the most important institutional quality determinants are law-and-order (-0.53), bureaucratic quality (-0.51), military in politics (-0.45), corruption control (-0.42), and internal conflict (-0.35). |
| Keywords: | informal sector; institutional quality; cross-country analysis; panel data |
| JEL: | E26 H26 O43 |
| Date: | 2022–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114755&r= |
| By: | Thiago Scarelli (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | This paper examines 1,313 regions from 46 developing countries to document that individuals working outside the context of a firm (own-account workers and family workers) are consistently overrepresented among the poorest workers in their labor markets. |
| Keywords: | Employment,poverty,development |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03779266&r= |
| By: | Franziska Ohnsorge; Shu Yu |
| Keywords: | Poverty Reduction - Inequality Private Sector Development - Enterprise Development & Reform Social Protections and Labor - Employment and Unemployment Social Protections and Labor - Labor Markets Public Sector Development - Regulatory Regimes |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:35782&r= |
| By: | Natascha Nisic (Johannes Gutenberg University Mainz); Friederike Molitor (Johannes Gutenberg University Mainz); Miriam Trübner (Johannes Gutenberg University Mainz) |
| Abstract: | Despite a growing need for domestic help, many households refrain from outsourcing their domestic chores to the market. By drawing on transaction cost theory, the present study sheds light on how demand can be stimulated by overcoming trust problems that are related to the quality and professionalisation of domestic services. The experimental findings from our factorial survey (N=4024) further show how state-subsidised service vouchers not only facilitate outsourcing by alleviating budget constraints, but also how they contribute to better pay for domestic workers while simultaneously reducing the costs for households. Overall, the results support recent policy recommendations that emphasise the role of professionalisation, in combination with service voucher systems, in increasingly shifting paid domestic work from the informal to the formal economy. |
| Date: | 2022–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:jgu:wpaper:2209&r= |
| By: | Cyril Chimilila; Vincent Leyaro |
| Abstract: | This paper investigates the effect of ICT and e-formalization on tax mobilization efforts in sub-Saharan Africa. Using a panel of 42 countries from 1991 to 2018 and applying appropriate model specifications; the empirical findings show that there is strong support that ICT (mobile subscription and internet usage) and e-formalization (e-government) enhanced tax mobilization efforts. There is scope to increase tax compliance and expand the tax base in SSA (tax mobilization efforts) through the increase in the usage of ICT that can be applied to simplify tax administration, reduce compliance costs, and provide convenience to taxpayers and enhance enforcement. It is equally important that other policies are skewed toward supporting the development of ICT in SSA countries, supporting the application to improve e-payments, formalization, and tax administration. Furthermore, tax administrations in SSA should take advantage of ICT in discouraging the use of cash in paying taxes to help reduce informality, integrate systems that use third-party information collected from e-payment platforms, and combine advanced data analysis to expand the tax base, enhance enforcement and increase taxpayer compliance. |
| Keywords: | ICT, e-formalization, tax effort, sub-Saharan Africa |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:not:notcre:22/03&r= |
| By: | García-Suaza, A; Gallego, J. M.; Mayorga, J. D.; Mondragón-Mayo, A.; Sepúlveda, C.; Sarango, A. |
| Abstract: | The increase in global immigration phenomena has impacted local labor markets. The process of social and economic assimilation is crucial to ensure the well-being of both natives and immigrants. This article analyzes the impacts of immigration from Venezuela to Colombia, differentiating the effects of recent and long-term immigration on natives and immigrants. We find that immigration has decreased employment and hourly wages; and increased informality, while the impact on unemployment is null. These effects are higher among immigrants in comparison with the native population. Our results show that even when adverse effects on labor market outcomes are estimated, there is evidence of adaptability to the immigration shock and that an assimilation process is taking place. |
| Keywords: | Migration, labor market, assimilation, Colombia. |
| JEL: | F22 O15 R23 J61 |
| Date: | 2022–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:col:000092:020417&r= |
| By: | Rother,Friederike Uta; Chartouni,Carole; Sanchez-Reaza,Javier; Brodersohn Ostrovich,Ernesto Ariel; Pallares-Miralles,Montserrat |
| Abstract: | This paper proposes a framework of voluntary savings schemes (VSS) in Jordan that cancomplement the current formal sector arrangements to better protect informal workers against economic shocks,unemployment, old age, or disability. As benefits of traditional mandatory pension systems worldwide have beencut substantially since the 1990s, voluntary defined contribution schemes are increasingly trying to fill thegap. In many countries, including in low-income countries, special voluntary savings schemes have been introduced toprotect informal workers. Blending the knowledge from best practices internationally with the cluster methodologydeveloped specifically for Jordan, the paper provides an overview of the current system of social security in Jordanand presents policy options to lower informality, extend social protection coverage, and provide more adequateprotection to workers. |
| Date: | 2022–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:hdnspu:170802&r= |
| By: | Rother,Friederike Uta; Chartouni,Carole; Sanchez-Reaza,Javier; Paez Salamanca,Gustavo Nicolas; Fallah,Belal N. Y |
| Abstract: | This paper exploits a rich database to provide comprehensive profiling of informality in Jordan,including who informal workers are, their characteristics, and where they work, as well as providing policyrecommendations to address informality. The structural framework developed through the comprehensive profiling isfollowed by an analysis of why workers are informal, using inferential multivariate analysis. Statistical techniques(that is, cluster analysis) are used to group workers by similar characteristics (including education, gender,income, and form of employment) to allow policy makers to pinpoint specific policy tools that can target each group.The paper offers long term policy solutions to address informality, including fostering competition to boostproductivity and providing a level playing field. It also proposes short, and medium-term policy options to protectworkers against shocks until more productive jobs are created, for instance through the provision of short-termbenefits through defined contribution schemes. Heterogeneity is addressed by tailoring policy instruments to clusters of workers. |
| Date: | 2022–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:hdnspu:170803&r= |
| By: | Petros Kosmas; Antonis Theocharous; Elias Ioakimoglou; Petros Giannoulis; Leonidas Vatikiotis; Maria Panagopoulou; Lamprianos Lamprianou; Hristo Andreev; Aggeliki Vatikioti |
| Abstract: | This research study utilises a mixed design model to empirically measure and address the phenomenon of precarious work and precariousness in Cyprus. For the purposes of this study precariousness is perceived as a condition in which people face specific dangers, risk of disease or accident, material deprivation and poverty. Furthermore, as a result of precarious employment, insufficient income and lack of property, these individuals are not able to cope or be exposed to prolonged periods of unemployment and its subsequent social risks and dangers. By analysing data from the EU-SILC (2020) for Cyprus, the characteristics of precarious employees were identified, along with the factors contributing to precariousness. The majority of precarious workers in Cyprus were women, immigrants and young people. Following this, precarity was examined as a condition in which precariousness and economic vulnerability intersect and interact. Precarious workers accounted for 9,5% of all employees in 2019, whereas those in precarity (i.e., precarious and economically vulnerable) amounted for 4,4% of all employees. The present research and its empirics contribute to the discussion of the phenomenon of precarious work and precariousness by introducing new variables and introducing new empirical approaches to the examination of precarious employment and precariousness. The results of this study are intended to provide stakeholders with an enhanced understanding of the phenomenon which will ultimately lead to new theoretical and policy avenues towards its reduction and elimination. |
| Keywords: | Cyprus; Precariousness; Economics; Work |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:hel:greese:175&r= |
| By: | Posada, H. M.; García, A. F.; Londoño, D |
| Abstract: | Provision of new subsidized housing projects has proven to be an effective alternative to reduce the high level of quantitative housing deficit in developing countries. However less is known about how these housing projects affect the quality of the surrounding habitat, especially when projects are located in areas with high levels of precarious housing. Using highly granular public information from Medellin, Colombia, we estimate the causal effect of new social housing projects (VIS) on housing quality indicators in the neighborhood. To estimate this causal effect, we use the geological quality of the land as an instrumental variable for a measure of exposition to new social housing projects. Our results show that new VIS projects lead to a reduction of informal housing, poverty, and crime in the neighborhood. |
| Keywords: | Public housing, Informal housing, Neighborhoods, Developing country |
| Date: | 2022–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:col:000092:020416&r= |
| By: | Steven Cassimon; Alessandro Maravalle; Alberto González Pandiella; Lou Turroques |
| Abstract: | Individuals’ access to finance is particularly low in Mexico. Widening access to finance would boost growth and inclusion. This paper uses microdata from the National Survey for Financial Inclusion to assess the drivers of and the barriers to people’s financial inclusion in Mexico. Results show that working in the formal sector, the level of wealth and income, educational attainment, and age are the socio-economic characteristics that most affect the likelihood of holding any formal financial product. The relative importance of these characteristics, however, varies across financial products. Economic barriers to individuals’ financial inclusion are strongly associated with widespread informality and a low level of education and income. These results suggest that financial education programmes and credit registries considering a wider set of data to assess informal workers' credit worthiness would be promising avenues to help more Mexicans access financial services. |
| Keywords: | banks, credit registry, financial education, financial inclusion, informality |
| JEL: | D18 G2 G41 G51 G52 G53 O32 |
| Date: | 2022–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1728-en&r= |
| By: | García-Suaza, A; Rodríguez-González, D; Sarango, A; Mayorga, J. D; Pretel, A; Husain-Talero, S; Zarama, L; Urbano, J. C |
| Abstract: | Existe una serie de recursos y capacidades de los negocios que determinan su crecimiento y desempleo. Entre estos se ha destacado el acceso a mercado financiero, el nivel de digitalización y la formalidad del negocio. Este paper estudia el diferencial de ingresos en los micronegocios diferenciando por cada uno de estos aspectos con el fin de cuantificar los factores que explican dicha diferencia. Utilizando información de un grupo de micronegocios que hacen parte de los programas de Fundación WWB Colombia durante el Plan Reactivate y métodos de descomposición Oaxaca-Blinder, se evidencia que los micronegocios formales con altos niveles de inclusión financiera tienen, en promedio, mayores ingresos que sus pares. Un análisis con enfoque de genero muestra que los micronegocios cuyo dueno es hombre y tiene un alto nivel de habilidades digitales, lo cual mejora su desempleo. Estos resultados se corroboran a partir de trabajo cualitativo en campo que evidencia que los microempresarios perciben al crédito informal más atractivo que al bancario, argumentando facilidad de otorgamiento y flexibilidad de pagos. |
| Keywords: | Inclusión financiera, habilidades digitales, Micronegocios, Colombia |
| JEL: | G21 O16 O17 L25 |
| Date: | 2022–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:col:000092:020418&r= |