The paper considers several determinants of the size of the informal sector and explores the implications of corruption. It focuses attention on an issue that has not received much attention before, namely, the link between informality and corruption. We show that corruption affects both the...

The paper considers several determinants of the size of the informal sector and explores the implications of corruption. It focuses attention on an issue that has not received much attention before, namely, the link between informality and corruption. We show that corruption affects both the...

This paper provides micro econometric evidence on the factors that influence an individual’s or a firm’s vulnerability to receiving bribe demands. While much of the existing literature on corruption looks at the effect of corruption on macro variables such as growth rates and income...