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on Informal and Underground Economics |
| By: | Sofronis Clerides; Maria Delgado Coelho; Mr. Alexander D Klemm; Mr. Christos Kotsogiannis |
| Abstract: | This paper discusses under what circumstances residence and citizenship by investment (RBI or CBI) schemes could be used by individuals engaging in tax avoidance or evasion. It describes the market for CBI and RBI and how features of the offered programs might reveal the underlying motivations of governments offering them. The paper then presents empirical evidence on the conditions under which such schemes are offered. Finally, the paper estimates the impact of such schemes on investment, house prices, and public revenues. |
| Keywords: | Residence by Investment; Citizenship by Investment; Tax Evasion. |
| Date: | 2025–01–10 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/008 |
| By: | Jirjahn, Uwe (University of Trier) |
| Abstract: | This article reviews quantitative research on unions and collective bargaining in Sub-Saharan Africa. It discusses the consequences of unions for wages, inequality, economic performance and employer-employee relations. The article also highlights the role of unions in society, a role that goes beyond the economic sphere. Moreover, the article discusses evidence on how the specific situation in Sub-Saharan Africa influences unionization and collective bargaining. The informal sector, ethnic divide and globalization entail serious threats to workers' unionization. The increasing influence of China and neoliberal policy prescriptions by the International Monetary Fund and the World Bank are challenging factors, too. |
| Keywords: | Africa, industrial relations, political spillover, informal sector, ethnic diversity, globalization |
| JEL: | J51 J52 F66 O10 O55 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17597 |
| By: | Oscar Becerra; Leonardo Fabio Morales |
| Abstract: | This paper analyzes the effect of payroll taxes on the formal sector labor demand in the presence of wage rigidity. In particular. We study the impact of a reduction of payroll taxes on the creation of formal jobs in Colombia, where about 40 percent of formal-sector workers earn the minimum wage. Using a reform that granted tax credits to firms hiring workers younger than 28 years of age, we obtain estimates of the effect of payroll taxes on formal-sector employment and wages. We show that payroll tax incidence is borne by formal-sector employers. The reduction in payroll taxes increased Formal-sector employment and did not affect wages. Using the estimation results, we recover an estimate of the elasticity of the formal-sector labor demand between −0.53% and −0.87%. **** RESUMEN: Este artículo analiza el efecto de los impuestos a la nómina sobre la demanda laboral en el sector formal en presencia de rigidez salarial. En particular, estudiamos el impacto de una reducción de los impuestos a la nómina en la creación de empleos formales en Colombia, donde alrededor del 40 por ciento de los trabajadores del sector formal ganan el salario mínimo. Utilizando una reforma que otorgó créditos fiscales a las empresas que contratan trabajadores menores de 28 años, obtenemos estimaciones del efecto de los impuestos a la nómina sobre el empleo y los salarios en el sector formal. Mostramos que la incidencia del impuesto a la nómina es soportada por los empleadores del sector formal. La reducción en los impuestos a la nómina aumentó el empleo en el sector formal y no afectó los salarios. A partir de los resultados de estimación, recuperamos una estimación de la elasticidad de la demanda laboral en el sector formal entre −0.53% y −0.87%. |
| Keywords: | Payroll taxes, formal employment, formal wages, labor policy, impuestos a la nómina, empleo formal, salarios formales, política laboral |
| JEL: | E62 H25 J21 J3 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:bdr:borrec:1297 |
| By: | Fahmida Khatun; Syed Yusuf Saadat; Zazeeba Waziha Saleh; Faiza Tanaz Ahsan |
| Abstract: | Social protection is expected to play a crucial role in development planning when aiming to promote inclusive growth in an economy with a significant number of people living in poverty, a large proportion of vulnerable individuals, and a high rate of informal employment. |
| Keywords: | Social Safety Net, Social protection, Inclusive growth, Poverty reduction, Social Safety Net Programmes, SSNPs, Bangladesh |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:pdb:pbrief:58 |
| By: | Kouame Romaric Kouakou (UJloG - Université Jean Lorougnon Guédé); Assandé Pierre Kadjo |
| Abstract: | In Côte d'Ivoire, young people are struggling to find formal employment. The aim of this study is to analyse the determinants of young people's access to formal employment. To do this, we use a multinomial Probit model based on survey data from the National Institute of Statistics (INS) for 2019. Our results show that being a young woman, single, a graduate of lower-level vocational and technical education (CAP and BT), living in a rural area, and lacking professional experience, all reduce the chances of securing formal employment. However, these factors increase the likelihood of informal employment or unemployment. On the other hand, being married and holding a qualification other than the CAP or BT increase the chances of accessing formal employment. To improve young people's access to formal employment in Côte d'Ivoire, it is crucial to strengthen vocational training, support entrepreneurship, and raise awareness about education. Specific initiatives for young women and investments in rural areas are also necessary, along with the formalisation of the informal sector. |
| Abstract: | En Côte d'Ivoire, les jeunes peinent à trouver un emploi formel, L'objectif de ce travail consiste à analyser les déterminants de l'accès des jeunes à un emploi formel. Pour se faire, nous utilisons un modèle Probit multinomial sur les données d'enquête de l'Institut Nationale de la Statistique (INS) de 2019. Nos résultats montrent que, être une jeune femme, un célibataire, un diplômé de la formation professionnelle et technique de premier cycle (CAP et BT), vivre dans en milieu rural et n'ayant pas d'expérience professionnelle, réduisent les chances d'avoir un emploi formel, cependant augmentent les chances d'avoir un emploi informel ou être au chômage. En revanche, le fait d'être marié et de posséder un diplôme à l'exception du CAP et BT, augmentent les chances d'avoir à un emploi formel. Pour améliorer l'accès des jeunes à des emplois formels en Côte d'Ivoire, il est crucial de renforcer la formation professionnelle, soutenir l'entrepreneuriat et sensibiliser à l'éducation. Des initiatives spécifiques pour les jeunes femmes et des investissements dans les zones rurales sont également nécessaires, ainsi que la formalisation du secteur informel. |
| Keywords: | Formal employment, Informal employment, Multinomial probit, Unemployment, Emploi informel, Probit multinomial, Chômage, Emploi formel |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04810804 |
| By: | Juha, Sharmin Jahan; Mizan, Arefin |
| Abstract: | Recent research in the emerging field of ‘Indigenous Entrepreneurship’ is revealing that there are various conditions and values present when it comes to Indigenous businesses and enterprises, that fundamentally challenges the common assumptions about entrepreneurship. This study aims to address the challenges that ethnic minorities in Bangladesh, otherwise known as Indigenous people (IP), face in their entrepreneurial ventures while remaining in the informal sector, and recommend policy initiatives to counteract those challenges. We hypothesize that the Indigenous economy’s entrepreneurial landscape mainly comprises informal entrepreneurship. Which inevitably creates barriers to accessing financial institutions, incentives and services provided by the Government of Bangladesh (GOB) and other formal institutions, necessary for Small and Medium Enterprises (SME) to scale up and maximize market development. For this study, we used 67 case studies of IP-led businesses and startups in Bangladesh, in conjunction with the Future of Business Survey Data from Facebook. We use Fuzzy-set Qualitative Comparative Analysis (Fs/QCA), a novel analytical method to identify complex interacting causal factors from a large body of case studies. We hope to provide a sound basis for policy interventions based on practical and perceived needs of IPs, which are required to make entrepreneurship in Bangladesh more inclusive and ensure that IPs have a level playing field in the formal economy of Bangladesh. |
| Date: | 2025–01–10 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:d3c8z |
| By: | Ibrahima Sory Mamikouny Camara (LPAO-SF - Laboratoire de Physique de l'Atmosphère et de l'Océan Siméon Fongang - ESP - École Supérieure Polytechnique de Dakar - UCAD - Université Cheikh Anta Diop de Dakar [Sénégal]); Alpha Oumar Camara (Université Gamal Abdel Nasser de Conakry) |
| Abstract: | This study examines the factors influencing the professional integration of graduates from the University of N'Zérékoré, Guinea, through a quantitative survey of 569 graduates from the classes of 2016 to 2021. To study the factors influencing graduates' professional integration, a stratified sampling method based on fields of study was used. The results are based on descriptive statistics and a logistic regression model. The results show that 46.7% of graduates are currently working, mainly in the informal sector (56.3%). Unfortunately, this sector is characterized by a high degree of job insecurity. Indeed, 53.7% of workers have part-time jobs, 16.9% have no employment contract, and 39.4% have a verbal contract. These circumstances make these individuals extremely vulnerable. A number of factors contribute to their integration into the job market, such as their gender, their computer skills, the additional training they undergo and employment-oriented training. University internships, which are mainly research-oriented, have a limited effect on professional integration. This study highlights the need to reform them so that they are more in line with the demands of the job market. The study recommends reorganizing internships so that they offer concrete work experience, improving graduates' digital skills and strengthening partnerships between universities and businesses. These recommendations aim to eliminate the gaps in graduate integration and enhance their employability in the constantly evolving job market. Keywords: professional integration, university graduates, labor market, determining factors, Republic of Guinea |
| Abstract: | Cette étude examine les facteurs qui influencent l'insertion professionnelle des diplômés de l'Université de N'Zérékoré, en Guinée, grâce à une enquête quantitative menée auprès de 569 diplômés des promotions 2016 à 2021. Pour étudier les facteurs influençant l'intégration professionnelle des diplômés, une méthode d'échantillonnage stratifié en fonction des domaines d'études a été utilisée. Les résultats sont basés sur des statistiques descriptives et un modèle de régression logistique. Il en résulte que 46, 7 % des diplômés travaillent actuellement, principalement dans le secteur informel (56, 3 %). Ce secteur est malheureusement caractérisé par une grande précarité. En effet, 53, 7 % des travailleurs y occupent un emploi à temps partiel, 16, 9 % n'ont pas de contrat de travail, et 39, 4 % ont un contrat verbal. Cette circonstance rend ces individus extrêmement exposés. Plusieurs facteurs contribuent à leur intégration sur le marché du travail, tels que leur genre, leurs compétences en informatique, les formations complémentaires qu'ils suivent et celles axées sur l'emploi. Les stages universitaires, axés principalement sur la recherche, ont un effet limité sur l'insertion professionnelle. Cette étude souligne la nécessité de les réformer afin qu'ils répondent davantage aux exigences du marché du travail. L'étude recommande de réorganiser les stages afin qu'ils offrent une expérience professionnelle concrète, d'améliorer les compétences numériques des diplômés et de renforcer les partenariats entre les universités et les entreprises. Ces recommandations visent à combler les lacunes dans l'intégration des diplômés et à renforcer leur employabilité sur le marché de l'emploi, qui évolue constamment. Mots clés : insertion professionnelle, diplômé universitaire, marché du travail, facteurs déterminants, République de Guinée |
| Keywords: | insertion professionnelle, diplômé universitaire, marché du travail, facteurs déterminants, République de Guinée ., professional integration university graduates labor market determining factors Republic of Guinea, professional integration, university graduates, labor market, determining factors, Republic of Guinea |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04778925 |
| By: | Katharina Henn; Michaela Lestakova; Kevin Logan; Jakob Hartig; Stefanos Georganos; John Friesen |
| Abstract: | Slums, informal settlements, and deprived areas are urban regions characterized by poverty. According to the United Nations, over one billion people reside in these areas, and this number is projected to increase. Additionally, these settlements are integral components of urban systems. We conducted a bibliometrical analysis and scoping study using the Web of Science Database to explore various perspectives on urban poverty, searching for scientific publications on the topic and providing details on the countries where the studies were conducted. Based on 3947 publications, we identify the extent to which domestic research organizations participate in studying urban poverty and which categories of science they investigate, including life sciences \& biomedicine, social sciences, technology, physical sciences, and arts & humanities. Thereby, we find that research on slums is often limited to specific countries, e.g. India, South Africa, Kenya, or Brazil. This focus is not necessarily correlated with the number of people living in slums. The scientific discourse is up to now predominantly shaped by medical and social sciences with few studies addressing technological questions. Finally, our analysis identifies several possible future directions for research on slums. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.13689 |
| By: | Pineda Salazar, Ramón; Albornoz, Sonia; Aravena, Claudio; Gálvez, Tomás |
| Abstract: | Entre 2013 y 2022, las economías de la región han registrado la menor tasa de crecimiento del número de ocupados desde 1950. Pero no sólo se están creando cada vez menos empleos, sino que la mayoría de los empleos que se crean son informales. El menor crecimiento del PIB sin duda constituye una de las razones detrás de estos hechos, pero más allá del impacto que el bajo crecimiento económico tiene en la dinámica de la ocupación informal, hay ciertos grupos que suelen ser más propensos a obtener empleos informales que otros. En este estudio, empleando una definición harmonizada de “ocupación informal” inspirada en las propuestas del CIET 21, se analiza para 14 países de la región cómo la probabilidad de informalidad varía según características socioeconómicas de las personas ocupadas entre 2013 y 2022. De los resultados se desprende que: i) la educación afecta de manera significativa la probabilidad de que un ocupado sea informal, cuanto mayor es el nivel educativo de la persona ocupada, menos probable es que sea informal; ii) la ocupación informal suele ser mayor tanto en los jóvenes como personas mayores, aunque por razones distintas; iii) la probabilidad de que un ocupado sea informal se incrementa si la persona es mujer, especialmente, cuando existen dependientes en el hogar; iv) un ocupado que vive en una zona urbana es menos propenso a ser informal que alguien que vive en zonas rurales, y v) los migrantes son más propensos a ser informales que los nacionales del país. Los resultados reflejan que la informalidad laboral es un fenómeno que depende de múltiples factores, por lo tanto, la formalidad laboral solo podrá aumentar si se aplican una serie de políticas que se complementen y atiendan la gran diversidad de aspectos que la condicionan. En este sentido, el informe plantea que es necesario integrar políticas laborales y productivas que estimulen un mayor crecimiento económico y que faciliten la creación de empleos formales, en especial entre aquellos grupos que son más vulnerables. Adicionalmente, es necesario impulsar políticas que incentiven a pequeños productores y empresarios para que formalicen sus actividades. |
| Date: | 2024–12–17 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col037:81103 |