The analysis presented in this paper defines three different synthetic measurements of disincentives for formal work: two standard measurements, namely the tax wedge and the marginal effective tax rate (METR); and a new, innovative measurement called formalization tax rate (FTR). The novelty of...

Private households' demand for support in housekeeping, childcare and care of elderly is increasing. In Germany, it is met mainly by undocumented work. The report shows that this constellation is eased by legal and institutional regulations: Social as well as tax legislation promote a "marginal...

This report adds two perspectives on informality. First, it disassembles the mechanics of the deleterious links between informal employment, low-paying work and low skills. It shows that informal employment is highly persistent, and that the vulnerability of informal workers is passed on to...