nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2025–11–24
three papers chosen by
Catalina Granda Carvajal, Banco de la República


  1. Dishonesty in Complex Environments: Deliberate Lies, Shortcuts, or Accidental Mistakes? By Pascal Nieder; Sven Arne Simon
  2. From Double to Triple Burden: Gender Stratification in the Latin American Data Annotation Gig Economy By Lauren Benjamin Mushro
  3. Employment Instability and Housing Precarity Among Rural-to-Urban Migrants in China: Challenges and Policy Implications By Liming Yao

  1. By: Pascal Nieder; Sven Arne Simon
    Abstract: Compliance with complex regulatory requirements can be challenging. We study why and how complexity affects non-compliance in terms of incorrect reporting. Our novelexperimental design isolates two distinct complexity effects: an increase in honest mistakes and a substantial shift toward self-serving dishonesty. We identify two mechanisms for this dishonesty shift. First, individuals with social image concerns systematically take advantage of plausible deniability. Second, we document an unexplored form of dishonesty: besides conscious lies, individuals use fraudulent shortcuts in response to complex cheating opportunities.
    Keywords: Dishonest behavior, Complexity, Lying, Non-Compliance, Experiment
    JEL: C91 D83 D91 H26 K42
    URL: https://d.repec.org/n?u=RePEc:mpi:wpaper:tax-mpg-rps-2024-17
  2. By: Lauren Benjamin Mushro
    Abstract: This paper examines gender stratification in the Latin American data annotation gig economy, with a particular focus on the "triple burden" shouldered by women: unpaid care responsibilities, economic precarity, and the volatility of platform-mediated labor. Data annotation, once lauded as a democratizing force within the global gig economy, has evolved into a segmented labor market characterized by low wages, limited protections, and unequal access to higher-skilled annotation tasks. Drawing on an exploratory survey of 30 Latin American data annotators, supplemented by qualitative accounts and comparative secondary literature, this study situates female annotators within broader debates in labor economics, including segmentation theory, monopsony power in platform labor, and the reserve army of labor. Findings indicate that women are disproportionately drawn into annotation due to caregiving obligations and political-economic instability in countries such as Venezuela, Colombia, and Peru. Respondents highlight low pay, irregular access to tasks, and lack of benefits as central challenges, while also expressing ambivalence about whether their work is valued relative to male counterparts. By framing annotation as both a gendered survival strategy and a critical input in the global artificial intelligence supply chain, this paper argues for the recognition of annotation as skilled labor and for regulatory interventions that address platform accountability, wage suppression, and regional inequalities.
    Date: 2025–11
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2511.07652
  3. By: Liming Yao
    Abstract: A growing body of research has explored housing affordability in China, with a focus on the factors contributing to housing difficulties. However, limited attention has been given to housing precarity, particularly among disadvantaged groups experiencing employment instability. Despite recent shifts in rural to urban migration trends in China, challenges such as restricted access to housing and stable employment have become increasingly prevalent for this group, exacerbated by persistent institutional barriers. While the interplay between housing precarity and job instability has been extensively studied in the international contexts, there remains a notable gap in understanding these dynamics among Chinese rural to urban migrants. This study seeks to address this gap by investigating how employment instability exacerbates housing precarity and how these challenges limit migrants' access to social welfare and hinder their social integration in urban destinations. Using data from Chinese household surveys and empirical estimations, the findings reveal that unstable employment, characterised by irregular income or precarious contracts, limits individuals’ ability to afford secure and adequate housing, perpetuating a cycle of housing and economic insecurity. The heterogeneity effect by educational achievement highlights that migrants with greater qualifications demonstrate increased likelihood in securing job opportunities, thereby reducing the adverse impacts on housing security. The findings enrich this field of study by offering China-specific insights, calling for policy attention to address the housing and labour challenges for rural to urban migrants.
    Keywords: Housing Policy; Housing precarity; Job instability; Rural to urban migrants
    JEL: R3
    Date: 2025–01–01
    URL: https://d.repec.org/n?u=RePEc:arz:wpaper:eres2025_86

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