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Unskilled labor is the abundant resource in many developing countries, especially at an early stage of their development. Yet, even as at given technologies labor markets have not cleared, neo-classical economists have rejected the notion of an institutional or bargaining wage not based on...
Persistent link: https://www.econbiz.de/10009615061
In this paper we theoretically and empirically examine how the interaction between the formal court system and the informal loan network affects a household's decision to start a business. We find that when the formal court system is weak, expansion of informal credit network leads to the...
Persistent link: https://www.econbiz.de/10011429969
This paper investigates which firms suffer from informal competition and highlights the role of access to finance in this context. We use cross-sectional data from the World Bank Enterprise Surveys covering 42,000 firms in 114 developing and transition countries for the period 2006 to 2011 and...
Persistent link: https://www.econbiz.de/10010359687
This paper presents an exploratory analysis of the potential impacts of the Lei do Empreendedor Individual (Individual Entrepreneur Law). We intend to present evidence that helps clarify, albeit only partially, whether the policy was successful in promoting: i) micro-entrepreneurship in Brazil;...
Persistent link: https://www.econbiz.de/10010402557
In this paper we theoretically and empirically examine how the interaction between the formal court system and the informal loan network affects a household's decision to start a business. We find that when the formal court system is weak, expansion of informal credit network leads to the...
Persistent link: https://www.econbiz.de/10010488828
Too often, academics and policy makers interpret formality as a binary choice and formalization as an irreversible … process. Yet, formalization has many facets and shades on the business and labor fronts, and firms may not be able or willing … to formalize all at once. This paper explores the joint process of business and labor formalization, using a unique panel …
Persistent link: https://www.econbiz.de/10011896965
Persistent link: https://www.econbiz.de/10011648140
Persistent link: https://www.econbiz.de/10011735625
Persistent link: https://www.econbiz.de/10009160829
Recent literature on tax evasion emphasizes the importance of moral considerations to explain compliance behavior. As a consequence scholars aim to identify factors that shape this so-called tax morale. However, the causal link between tax morale and actual compliance behavior is not established...
Persistent link: https://www.econbiz.de/10010294865