Showing 1 - 10 of 138
This paper employs regression discontinuity methods to identify the effect of formality on Brazilian micro-firm performance. The SIMPLES program introduced in November 1996 consolidated multiple taxes and social security contributions into a single payment and reduced taxes for eligible small...
Persistent link: https://www.econbiz.de/10013150367
corruption in every sector is remarkably high. Stifling bureaucratic interference and corruption at every stage of economic … governance allowing substantial corruption in the system. Based on a study of 20 Indian states, we empirically show that higher … corruption increases level of employment in the informal sector. Further, our analysis also shows that for higher levels of …
Persistent link: https://www.econbiz.de/10013128210
This paper studies the impact of product and labor market regulations on informality and unemployment in a general framework where formal and informal firms are subject to the same externalities, differing only with respect to some parameter values. Both formal and informal firms have monopoly...
Persistent link: https://www.econbiz.de/10013129903
We provide an analysis of enforcement policies applicable to formal sector in dual labor markets. We use a framework with heterogeneous firms, endogenous determination of informal wage and politically dictated enforcement strategies. Firms which operate both in the formal and informal sectors do...
Persistent link: https://www.econbiz.de/10013120119
Seguro Popular (SP) was introduced in 2002 to provide health insurance to the 50 million Mexicans without Social Security. This paper tests whether the program has had unintended consequences, distorting workers' incentives to operate in the informal sector. The analysis examines the impact of...
Persistent link: https://www.econbiz.de/10013120129
This paper documents a positive correlation within European labour markets between the proportion of full-time employees with earnings on the minimum wage and the extent of underreporting of earnings in the economy. Using a simple model of a competitive labour market, I show how this correlation...
Persistent link: https://www.econbiz.de/10013120824
falls with stricter employment protection legislation (EPL) and higher tax wedge on labor. Thus it appears that in Europe at …, along with tax morale and the income effect. Yet the EPL effect on informality is positive (i.e., cost-related) when either …
Persistent link: https://www.econbiz.de/10013121759
The European Social Survey data are used to analyze informal employment at the main job in 30 countries. Overall, informality decreases from South to West to East to North. However, dependent work without contract is more prevalent in Eastern Europe than in the West, except for Ireland, the UK...
Persistent link: https://www.econbiz.de/10013121760
Much of the existing literature on the use of informal credit arrangements such as ROSCAs (Rotating and Credit Saving Associations) theorises the use of such institutions as arising from market failures in the development of formal saving and credit mechanisms. As economic development proceeds,...
Persistent link: https://www.econbiz.de/10013123599
), the tax wedge, the unemployment benefit level, unemployment benefit duration and union density, are assembled at the IZA … 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/10013096470