nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2024‒06‒10
six papers chosen by
Catalina Granda Carvajal, Banco de la República


  1. Social Protection in the Developing World By Abhijit Banerjee; Rema Hanna; Benjamin A. Olken; Diana Sverdlin Lisker
  2. A framework for investigating new firm entry: the (limited) overlap between informal-formal and necessity-opportunity entrepreneurship By Estrin, Saul; Guerrero, Maribel; Mickiewicz, Tomasz
  3. Labour market inequality in two Asian giants: Indonesia and India compared By Kunal Sen
  4. THE DIFFICULTIES OF SMEs : A BENCHMARK STUDY BETWEEN MOROCCO AND TURKEY By Lamia SABOUR ALAOUI
  5. Mapping the global geography of shell companies By Giulia Aliprandi; Thijs Busschots; Carlos Oliveira
  6. El panorama de la informalidad laboral y empresarial durante y después de la pandemia By Fernández, Cristina; Segura, Hector Daniel

  1. By: Abhijit Banerjee; Rema Hanna; Benjamin A. Olken; Diana Sverdlin Lisker
    Abstract: Social protection programs have become increasingly widespread in low- and middle-income countries, with their own distinct characteristics to match the environments in which they are operating. This paper reviews the growing literature on the design and impact of these programs. We review how to identify potential beneficiaries given the large informal sector, the design and implementation of redistribution and income support programs, and the challenges and potential of social insurance. We use our frameworks as a guide for consolidating and organizing the existing literature, and also to highlight areas and questions for future research.
    JEL: I38 O15
    Date: 2024–04
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:32382&r=
  2. By: Estrin, Saul; Guerrero, Maribel; Mickiewicz, Tomasz
    Abstract: We analyse entrepreneurial entry along the dimensions of informal-formal and necessity-opportunity entrepreneurship, distinguishing between them yet considering them jointly. While the dominant view in the literature conflates necessity with informal entry, and opportunity with formal entry, we hypothesise that informal entrepreneurship may be attractive to higher-income individuals as a testing ground for entrepreneurial ideas. We also explain why higher-income individuals may undertake necessity entrepreneurship. We utilise individual Global Entrepreneurship Monitor (GEM) data from Chile (2019-2021), which identifies informal-formal and necessity-opportunity entrepreneurial entry modes, to test hypotheses on the role of individuals´ income in the four types of entrepreneurial entry. We also consider changes in entrepreneurial entry during a crisis and a non-crisis periods. Our results confirm that the patterns in the data are consistent with hypotheses derived from our proposed theoretical framework.
    Keywords: informal entrepreneurship; opportunity; necessity; income; crisis; global entrepreneurship; monitor; Chile; Elsevier deal
    JEL: J50
    Date: 2024–07–01
    URL: http://d.repec.org/n?u=RePEc:ehl:lserod:122663&r=
  3. By: Kunal Sen
    Abstract: We examine the nature of labour market inequality in Indonesia and India, using a common conceptual approach drawing from the job ladder framework. In the framework, we differentiate between self-employment and wage-informal and between formal, upper tier informal, and lower tier informal jobs. We find that both countries have a large proportion of workers in lower tier jobs, though the importance of wage-employment is larger in Indonesia. There are more workers in formal wage-employment in Indonesia than India.
    Keywords: job ladder, Labour market, Inequality, Informality, Indonesia, India
    Date: 2024
    URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-29&r=
  4. By: Lamia SABOUR ALAOUI (National School of Business and Management (ENCG))
    Abstract: SMEs have a high rate of disappearance, an SME in the course of its life may face the risk of failure. This failure is due to several micro or macro-economic factors. The objective of this article is to address the positioning of Moroccan small and medium enterprises in relation to Turkish SMEs. As such, we have chosen Turkey, as it is among the best economic powers in the world.The comparative analysis will focus on Turkey's strengths and advantages, notably in terms of the means to solve problems and difficulties related to R&D, competition from informal enterprises, access to finance, lack of managerial and entrepreneurial skills and the capacity of SMEs to participate in the exportable offer.
    Keywords: SMEs, Benchmarking, Managerial skills, Informal enterprises, R&D, Morocco, Turkey.
    JEL: A10
    URL: http://d.repec.org/n?u=RePEc:sek:iefpro:14115841&r=
  5. By: Giulia Aliprandi (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, EU Tax - EU Tax Observatory); Thijs Busschots (EU Tax - EU Tax Observatory); Carlos Oliveira (EU Tax - EU Tax Observatory)
    Abstract: This note examines the global prevalence and distribution of shell companies, which are often used for illicit financial activities like tax evasion. Using business registry data for over 200 jurisdictions, including individual US states, we construct an indicator of shell company prevalence based on the number of registered companies per capita. We find that known tax havens like the British Virgin Islands and the Cayman Islands have extremely high rates of company presence per adult. Zooming in on Europe reveals Estonia as a lesser-known host for shell companies, besides flagging known conduit countries like Luxembourg and Cyprus. A unique decomposition of US states also shows Delaware and Wyoming are potentially hosting a large number of shell companies. Indicative for the role of shell companies in international tax evasion, our shell company prevalence indicator correlates with jurisdiction characteristics catering tax evasion, such as low corporate tax rate and aggressive tax treaties.
    Date: 2023–12
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-04563980&r=
  6. By: Fernández, Cristina (FEDESARROLLO); Segura, Hector Daniel (FEDESARROLLO)
    Abstract: El presente trabajo realiza un análisis conjunto de la informalidad laboral y empresarial antes (2019) y después de la pandemia (2020 y 2021). Adicionalmente, realiza estimaciones de las políticas utilizadas para controlar la informalidad considerando efectos simultáneos en la productividad, el PIB y otras variables de interés general. Como parte de las recomendaciones de política que se derivan del trabajo se realiza una propuesta de monotributo, que solucione parte de la problemática que enfrentan las pequeñas empresas. Adicionalmente, el desarrollo de la base de datos mencionada permite contar con una metodología y una base de información para el análisis periódico de la informalidad; que puede ser actualizada año a año, con el fin de realizar recomendaciones acertadas para cada coyuntura. *** Abstract: This work carries out a joint analysis of labor and business informality before (2019) and after the pandemic (2020 and 2021). Additionally, estimates of the policies used to control informality, considering simultaneous effects on productivity, GDP, and other variables of general interest. As part of the policy recommendations derived from the work, a mono-tax proposal is made, which solves part of the problems faced by small businesses. Additionally, the development of the aforementioned database allows us to have a methodology and an information base for the periodic analysis of informality, which can be updated year after year, in order to make appropriate recommendations for each situation.
    Keywords: Informalidad Laboral; Informalidad Empresarial; Informalidad y Pandemia; Business Informality; Labor Informality; Informality and COVID
    JEL: C68 D22 J46
    Date: 2023–05–13
    URL: http://d.repec.org/n?u=RePEc:col:000124:021030&r=

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