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Many governments have spent much of the past decade trying to extend a helping hand to informal businesses by making it easier and cheaper for them to formalize. Much less effort has been devoted to raising the costs of remaining informal, through increasing enforcement of existing regulations....
Persistent link: https://www.econbiz.de/10010960119
The majority of firms in most developing countries are informal. We conducted a field experiment in Sri Lanka which provided incentives for informal firms to formalize. Offering only information about the registration process and reimbursement for direct registration costs had no impact on...
Persistent link: https://www.econbiz.de/10011279344
This paper investigates how informality can be defined and measured in the Turkish labor market. Two alternative … definitions of informality are used to explore their relevance and implications for the Turkish labor market using descriptive … characteristics to the likelihood of informality are investigated using multivariate probit analysis under the two definitions. The …
Persistent link: https://www.econbiz.de/10010886146
size of the informal economy. There is also evidence that a larger tax wedge increases informality. The tax wedge … with the literature, which identifies labor market regulation and the tax wedge as important drivers of informality. …
Persistent link: https://www.econbiz.de/10011271993
labour market policies. To diminish informality, cutting the costs of formality is more effective than raising those of … informality. …
Persistent link: https://www.econbiz.de/10011279277
informal jobs in Argentina. A novel household data set on informality and self-employment and information on labor inspections …
Persistent link: https://www.econbiz.de/10005233913
Two stylized representations are often found in the academic and policy literature on informality and formality in …
Persistent link: https://www.econbiz.de/10009216748
We study the impact of tax and minimum wage reforms on the incidence of informality. To gauge the incidence of … informality, we use measures of the extent of tax evasion, the extent of minimum wage non-compliance, and the size of the informal … expansion of informality: tax revenue maximization, and poverty alleviation among workers. …
Persistent link: https://www.econbiz.de/10009403380
Informality has long been a salient phenomenon in developing country labor markets, thus has been addressed in several …, heterogeneous and multifaceted informal labor market. However, the existing evidence on labor informality in Turkey is mixed and …. In this way, we aim to contribute to the limited body of stylized facts available on mobility and informality in the …
Persistent link: https://www.econbiz.de/10009416951
We develop a model where formal sector firms pay tax and informal ones do not, but informal firms risk incurring the penalty associated with non-compliance. Workers may enter self-employment or search for jobs as employees. Workers with higher managerial skills will run larger firms while...
Persistent link: https://www.econbiz.de/10010552950