This paper provides an analysis of recent reforms of tax-benefit systems and a preliminary assessment of their impact on financial incentives to work and on labour supply. Many Member States have introduced policies to “make work pay” and have targeted low-wage workers with the aim of...

The purpose of this paper is to present an extended version of the IS/LM model, with illegal economy and money laundering in a closed economy, which allows an macroeconomic analysis of the effects of this presence on short-term equilibrium. Without disregarding the FATF´s money laundering...

This study focuses on analysing the linkages between output growth, employment and poverty, at both the macro and micro levels. At the macro level, the linkage between poverty and output growth is conceptualised in terms of the average productivity of the employed work force, which in turn gets...

The reform program and growth pattern exhibited by the Bolivian economy in the last decade did not favour employment creation and consequently not an effective reduction of poverty. During the last decade, those sectors where the bulk of employment is concentrated, presented the lowest growth...

Having in view the three main methods for the estimation of the informal economy's size, the study focuses in the first part on data and methodological problems, trying at the same time to outline a few behavioral aspects by using only simple simulation models. Thus, based on a 288-sample and...

The Informal Economy provides employment to more than 60 per cent of the labour population in the developing world despite being a site unfettered by regulations and social norms of fairness governing pay and work conditions. In assessing the factors behind an informal agent’s decision to...

The purpose of this paper is handling the informal sector in Egypt and the role it can play in accelerating the development process and poverty reduction. The structure of the paper starts with an introduction, and then gives a definition of development and its objectives in order to give a...

The main purpose of this paper is to examine the causes and consequences -- in particular, the policy implications -- of the ongoing urbanization in Bangladesh. Like many other Asian developing countries, a rapidly increasing share of the population of Bangladesh migrates to urban centers in...

This paper uses annual data for the period 1970-2006 in order to estimate and investigate the evolution of the Mexican informal economy. In order to do so, we model the informal economy as a latent variable and try to explain it through relationships between possible cause and indicator...

In this paper, we introduce firm heterogeneity in the context of a model of non-compliance with minimum wage legislation. The introduction of heterogeneity in the ease with which firms can be monitored for non compliance allows us to show that non-compliance will persist in sectors which are...