Vast literature is available covering main Informal Economy (IE) causes and consequences for Latin America and Caribbean (LAC), but its size estimation has been mainly limited to worldwide models applied to the region. This paper proposes a MIMIC Base Model using a data set composed by 41...

Vast literature is available covering main Informal Economy (IE) causes and consequences for Latin America and Caribbean (LAC), but its size estimation has been mainly limited to worldwide models applied to the region. This paper proposes a MIMIC Base Model using a data set composed by 41...

In this paper we study the role of income distribution as a determinant of the size of the informal sector in an economy. We rely on a channel whereby inequality affects the behaviour of aggregate demand and thus influences the incentives a firm has to become informal. We further postulate that...

In this paper we address the broad question, how does the process of industrial transformation, affect personal income distribution within a developing economy ? The starting point of our analysis is Kuznets (1955). What clearly emerges from Kuznets’s writings is that under certain...

This paper studies the role of income distribution as a determinant of the size of the informal sector in an economy by relying on a channel whereby inequality affects the behaviour of aggregate demand and thus influences the incentives a firm has to become informal. It is further postulated...

This paper applies the autoregressive distributed lag bounds testing method to investigate the long- and short-run relationship between the size of the shadow economy and income inequality in Uganda. The findings reveal evidence of the long and short-run relationship between the shadow economy...

This paper investigates the relationship between political corruption and the informal-formal sector income gap. We focus on a sample of 476 randomly selected municipalities in Brazil, and combine individual level Census data with measures of municipal corruption. We first document the upward...

We investigate whether rising income disparity contributes to the proliferation of shadow economic activities in Nigeria. The study uses data from 1991 to 2018 and adopts the Auto-regressive Distributed Lags (ARDL) cointegration approach to study the effects of income inequality on the shadow...

Using rich administrative and household survey data, we document a series of new facts on earnings inequality and dynamics in a developing country with a large informal sector: Brazil. Since the mid-1990s, both inequality and volatility of earnings have declined significantly in Brazil's formal...

This paper investigates whether the size of the shadow economy increases income inequality in Uganda. This paper applies the autoregressive distributed lag (ARDL) bounds testing approach to cointegration, to test the long- and short-run relationship between the shadow economy and income...