nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2023‒03‒20
three papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. When You Can't Afford to Wait for a Job: The Role of Time Discounting for Own-Account Workers in Developing Countries By Scarelli, Thiago; Margolis, David N.
  3. The association between women’s economic participation and physical and/or sexual domestic violence against women: A case study for Turkey By Angela Greulich; Aurélien Dasré

  1. By: Scarelli, Thiago (Paris School of Economics); Margolis, David N. (Paris School of Economics)
    Abstract: Frictional labor markets impose a fundamental trade- off: individuals may work on their own at any time, but can only take a potentially better-paid wage job after spending some time looking for it, suggesting that intertemporal considerations affect how people choose their occupation. We formalize this intuition under the job search framework and show that a sufficiently high subjective discount rate can justify the choice for own-account work even when it pays less than wage work. With this simple model, we estimate a lower bound for the discount rate that is implicit in the occupational choice of urban own-account workers in Brazil. We find that at least 65 percent of those workers appear to discount the future at rates superior to those available in the credit market, which suggests constrained occupational choice. Finally, we show that the estimated lower bound of the preference for the present is positively associated with food, clothing, and housing deprivation.
    Keywords: own-account work, self-employment, developing countries, financial constraints, time discounting, Brazil
    JEL: J22 J24 J31 J64
    Date: 2023–02
  2. By: Azfar Khan (Anker Research Institute); Richard Anker (Anker Research Institute); Martha Anker (Anker Research Institute)
    Abstract: Sustainable diets are far from assured for many people. Acquisition of a nutritious sustainable diet is predicated upon the availability of income, the inadequacy of which inhibits many people from realizing proper sustenance throughout the year. The occupational status of the majority of workers in rural areas and urban informal economy of the Global South highlights a weak income generation potential, which impedes the procurement of a sustainable diet. Instituting a living wage and income and other proactive policy support measures would go a long way in overcoming the shortfall and allow many more people to lead a decent life.
    Keywords: Living wage; living income; rural work status; urban work status; income adequacy; food availability and accessibility.
    JEL: D63 E24 E26 I31
    Date: 2021–06
  3. By: Angela Greulich (CRIS - Centre de recherche sur les inégalités sociales (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, IUF - Institut Universitaire de France - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche); Aurélien Dasré (CRESPPA - Centre de recherches sociologiques et politiques de Paris - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)
    Abstract: We test in how far women's economic participation can be associated with physical and/or sexual domestic violence against women in Turkey, by mobilizing the Survey "National Research on Domestic Violence against Women in Turkey" (wave 2014). Several studies found that economically active women have a similar, if not a higher risk of experiencing domestic violence than inactive women in Turkey, as well as in other emerging countries. We challenge these findings for Turkey by distinguishing between formal and informal labor market activities as well as between women who do not work because their partner does not allow them to and women who are inactive for other reasons. To increase the control for endogeneity in this cross-sectional setting, we apply an IV-approach based on cluster averages. We find that, while overall employment for women cannot be associated with a lower risk of experiencing domestic violence for women in Turkey, those women who participate in the formal labor market and those women who contribute at least the same as their partner to household income are less exposed to physical and/or sexual domestic violence than their counterparts. Distinguishing between formal and informal employment is thus important when it comes to investigate the association between women's economic activity and domestic violence. This is especially the case in a country like Turkey, which currently undergoes important socioeconomic changes and where women in formal and informal employment have therefore very different socioeconomic backgrounds.
    Date: 2022–11–16

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