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on Informal and Underground Economics |
| By: | Brad C. Nathan; Ricardo Perez-Truglia; Alejandro Zentner |
| Abstract: | We provide evidence on the role of fairness for tax compliance: households are willing to pay more in taxes if they believe that other households are contributing their fair share. We conducted an information-disclosure natural field experiment in the context of property taxes in the United States. We induced exogenous shocks to households' perceptions about the average tax rate paid by other households. We find that a higher perceived average tax rate decreases the probability of filing a tax appeal. Translating our estimates into a money metric, we find that for each additional $1 contributed by the average household, a taxpayer is willing to pay an extra $0.43 in his or her own taxes. |
| JEL: | C93 H4 H70 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32588&r= |
| By: | Miguel A. Mascarúa Lara |
| Abstract: | What are the effects on the labor market and aggregate income of frictions that restrict women's labor decisions that impede labor participation and composition being equal between men and women? To answer this question, I develop an occupational general equilibrium model with heterogeneous agents facing gender-based restrictions in labor participation and job selection. Then, I include an endogenous distribution of the size of formal and informal establishments and workers to replicate the Mexican data. Finally, I use the ENOE to calibrate the model and estimate gender-based frictions in the labor market in states and regions of Mexico and their effect on aggregate income. According to the model, aggregate income could increase by 4.3% without women's restrictions to entrepreneurship and by 32.1% without restrictions to entry and entrepreneurship. In addition, the southern states would witness the largest increases. |
| Keywords: | Misallocation;female entrepreneurship;gender frictions;informality |
| JEL: | J16 J70 O17 O40 O10 O50 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:bdm:wpaper:2024-05&r= |
| By: | Khondaker Golam Moazzem; Jebunnesa |
| Abstract: | The plastic industry faces unique challenges, such as structural issues due to small-scale operations in non-designed spaces, informal segments leading to substandard conditions, and reliance on complex machinery contributing to accidents and worker fatigue. Additionally, Occupational Safety and Health (OSH) problems encompass fire safety concerns due to the flammable nature of plastic, exposure to hazardous chemicals, and electrical safety risks. Combining legal obligations with proactive safety initiatives at the factory level can enhance the overall OSH preparedness of the sector. |
| Keywords: | Plastic Sector, Safety Risks, Occupational Safety and Health |
| Date: | 2023–12 |
| URL: | https://d.repec.org/n?u=RePEc:pdb:pbrief:45&r= |
| By: | Gazilas, Emmanouil Taxiarchis |
| Abstract: | The impact of labour market regulations on uninsured employment in Greece between 2014 and 2019 is a crucial exploration in response to the pervasive challenge of undeclared work. With the rise of globalization and evolving labour dynamics, understanding and addressing the complexities of uninsured employment by analysing data from the Greek Ministry of Labour and Social Affairs was the main purpose of this study. Employing a comprehensive examination of key indicators, the study sought to evaluate the effectiveness of these measures in curbing undeclared work. This paper meticulously analysed the pivotal strategies implemented by the Ministry of Labour and Social Affairs during the specified period using statistical analysis, focusing on high fines, reduced non-salary costs, the ERGANI information system, and a modernized fines framework. Statistical graphs were utilized to examine trends, providing a solid foundation for evaluating the impact of the implemented strategies. Additionally, qualitative assessments were employed to offer a nuanced understanding of the contextual factors influencing the outcomes. The findings reveal a positive trend, showcasing a significant reduction in undeclared workers and non-compliant businesses, underscoring the effectiveness of the implemented measures. In this research spanning 2014-2019, an examination of 237, 455 businesses in Greece revealed that 28, 044 entities (11.81%) employed undeclared workers. Among 812, 460 scrutinized employees, 44, 642 (5.49%) were identified as undeclared, leading to fines totalling €468, 997, 663 in efforts to address non-compliance with labour regulations. This study not only sheds light on the successful strategies adopted by the Greek government but also offers valuable practical lessons for policymakers globally. |
| Keywords: | government regulations, undeclared work, ARTEMIS plan, ministry of labour, labour economics, financial crisis |
| JEL: | E24 |
| Date: | 2024–01–11 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121311&r= |
| By: | Selam Robi |
| Abstract: | African cities are increasingly seen as key to unlocking national structural transformation and inclusive growth, as they tend to host the majority of the non-productive and informal labour force; attract the lion's share of domestic investment in non-productive sectors; and host different political-economic relations and power configurations to those observed at the national scale. |
| Keywords: | Urban politics, Structural transformation, Political settlements, Deals & Development, Informality, Governance, Urbanization |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-40&r= |
| By: | Harari, Mariaflavia; Wong, Maisy |
| Abstract: | We study the role of Dutch colonial institutions on urban development for the megacity of Jakarta, Indonesia. Using historical maps of Dutch settlements and a rich granular database, we implement a boundary discontinuity design comparing locations within 200 meters of Dutch boundaries. We find that historical Dutch areas today have significantly lower parcel density, are more likely to have formally registered parcels, and have more regular parcel layout, pointing to the importance of planning and mapping. Dutch settlements are also more likely to appear formal, as per a photographic index that ranks the appearance of neighborhoods. More broadly, Dutch areas are 11 percentage points more likely to have tall buildings (with more than 3 floors) and have 17 log points higher assessed land values. We consider channels such as natural advantage, direct Dutch investments, and land market institutions. |
| Keywords: | Urbanization, Property Rights, Informality, Institutions |
| JEL: | R0 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121334&r= |
| By: | Kohnert, Dirk |
| Abstract: | Sub-Saharan Africa (SSA) accounts for a third of the countries on the Financial Action Task Force (FATF) grey list. In the Money Laundering and Terrorist Financing (ML/TF) Ranking and Risk Assessment Tool, the region performed poorly in terms of resilience to ML/TF, with more than 60% of countries falling into the high-risk category. Although countries on the grey list are not subject to sanctions, inclusion on the list has a significant impact on their economies. This includes a significant reduction in capital inflows and foreign direct investment. The four main sources of illicit financial flows from SSA, South Africa, the Democratic Republic of Congo, Ethiopia and Nigeria, accounted for more than 50% of total illicit financial flows. While SSA received nearly $2 trillion in foreign direct investment (FDI) and official development assistance (ODA) between 1980 and 2018, it issued over $1 trillion in illicit financial flows. These illicitly acquired funds and diverted from the region continue to pose a development challenge. Illicit financial flows increased overall, but not concerning trade. In the 38 years from 1980 to 2018, they increased significantly in the 2000s, in parallel with the growth of African trade. Emerging and developing countries in Asia and the Middle East have become key targets. Previous initiatives to curb money laundering and improve the exchange of tax information between countries have largely failed, including the three most important: the Financial Action Task Force (founded in 1998), the Global Forum on Transparency and Exchange of Information for Tax Purposes (founded in 2009 ) and the Inclusive Framework on Base Erosion and Profit Shifting (founded in 2016). First, African countries lack the resources and capacity to address illicit financial flows. Second, many advanced economies are not sufficiently engaged in these initiatives. However, the repatriation of illegal funds is an important tool for strengthening the resource base of African countries. In 2020, for example, the United States and the self-governing British Crown Dependency of Jersey, one of the world's most notorious tax and money laundering havens, reached an agreement with Nigeria to repatriate more than $300 million stolen by Nigeria's former military dictator General Sani Abacha. |
| Keywords: | Blanchiment d'argent; détournement de fonds; corruption; évasion fiscale; terrorisme; économie informelle; trafic de de stupéfiants; traite d'êtres humains; diamants de conflits; gouvernance; Afrique subsaharienne; Afrique du Sud; Kenya; RD Congo; Éthiopie; Mozambique; Ouganda; Rwanda; Nigeria; Ghana; Mali; Cameroun; |
| JEL: | D23 D53 D63 D74 E21 E26 E42 F35 F38 F53 F54 G28 H26 K42 N27 N47 O17 Z13 |
| Date: | 2024–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121355&r= |
| By: | ASIANI, Freddy |
| Abstract: | The economy of Kinshasa, the capital of the Democratic Republic of Congo (DRC), is characterized by a significant presence of the informal sector. This sector plays a crucial role in job creation and the livelihoods of the population, but also presents challenges in terms of regulation, social protection, and formalization. This study aims to analyze the dynamics of employment contracts and work in Kinshasa, highlighting the impact of the informal sector and perspectives for evolving towards a more formal economy. |
| Keywords: | Informal sector, Employment contracts, Formal employment, Labor market dynamics, Urban economy, Kinshasa, Economic formalization, Public policies, Sustainable development, Democratic Republic of Congo |
| JEL: | J21 J42 O17 O55 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121276&r= |
| By: | ASIANI, Freddy |
| Abstract: | This paper examines working conditions and standards in the Democratic Republic of Congo (DRC), focusing on the key challenges faced by workers and the initiatives undertaken to improve their situation. Drawing from academic sources and international organization reports, this analysis seeks to provide a comprehensive understanding of current issues and improvement prospects. |
| Keywords: | Working conditions, Democratic Republic of Congo, Labor standards, Mining sector, Agricultural sector, Labor law, International initiatives. |
| JEL: | J81 O15 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121254&r= |