Intensity of Regulations as a Cause of the Informal Sector

2020 ◽  
Vol 15 (2) ◽  
pp. 135-154
Author(s):  
Khurrum S. Mughal ◽  
Friedrich G. Schneider ◽  
Zafar Hayat

It is argued in the literature that the intensity of regulations and control in an economy is a determinant of the informal sector which however is ignored in most of its estimates. This article uses a new variant of the currency demand approach where ‘unemployment’ and ‘intensity of government control’ are used to estimate a shadow economy, alongside a the traditional tax variable. We choose Pakistan since it has a significant share of its activities in the informal sector along with the history of various political and dictatorial regimes. Further, there are examples of bureaucratic control leading to corruption in the economy. It provides an opportunity to study the nexus between regulation intensity and informal economy and present a case study for other developing countries exercising control over the economy through the large size of its public sector. The results show that the intensity of the control variable has statistically and economically significant role in increasing the shadow economy, almost equivalent to the tax coefficient. Once the yearly variation in our estimates is mapped with various political regimes, it seems that the validity of estimates is reinforced considering policy inconsistencies and prominent events of each regime.

Author(s):  
Coskun Karaca

As informal activities are considered as a crime, that kind of activities are being carried out secretly and their detection is difficult in most cases. Along with difficulties in determining the size of informal economy exactly, recently developed models and opportunities to reach reliable data enable making realistic estimations in regard to shadow economy. This study benefits from 11 different studies estimating informality in European countries and Turkey by using physical input, currency demand, DYMIMIC, and MIMIC methods. Common conclusion acquired from these studies is that informality rate in Turkey is higher than EU15 countries and EU13 countries –except for Hungary, Cyprus, Latvia, Croatia and Bulgaria. In addition to the comparison of these data, the reasons of the emergence of informal economy, measuring methods, and policy proposals in order to hamper informality in Turkey are also discussed.


Nova Scientia ◽  
2021 ◽  
Vol 13 ◽  
Author(s):  
Saúl Alfonso Esparza-Rodríguez ◽  
Jaime A. Martínez-Arroyo ◽  
Armando Sánchez-Vargas

The crisis considered as the "Great Confinement" caused by the outbreak of the COVID-19 disease has had a multidimensional impact on humanity, on a health, social, economic, and political level. One of the main effects has been reflected in an economic crisis unparalleled in human history. In the economic history of the human being, each crisis of a wide magnitude has demonstrated a relationship between sociodemographic and economic factors and the growth of the informal economy, such as the level of earnings, scholarship, search of an extra job sex and levels of inequality and poverty. Method: Database was obtained from harmonized surveys made available by INEGI and SHCP, from where both quantitative and categorical data were identified that correspond to the structuralist and institutionalist dimension of informality. Based on that, we applied a Logit model to determine the probability of a person to belong to the informal sector of the economy, and a Probit model to identify reiterated variables of the model as well. Results: Statistically representative variables to determine the probability to belong to the informal sector, with a global percentage of 72.5 %, are the years of school, age, economic inequality, percentage of poverty in each state, the degree of spending in fiscal obligations, the level of fiscal compensations due to belonging to RIF, the type of occupation, sex and the level of minimal wages earned. Discussion or Conclusion: Considering the findings of the research, it is possible to infer that the people with higher risk of falling in the informality and continuing in it, show a characteristic profile that can be considered as a valid base to design effective public policies to reduce informality. The present research contributes trough the identification of a model that describes the profile of an individual with a higher probability of integrate to the informal sector of the economy, considering both sociodemographic and market structure factors, considering the effect of the pandemics in the current economic conditions.


2020 ◽  
Vol 10 (1) ◽  
pp. 53-68
Author(s):  
Margaret Giacalone

In the city of Cochabamba, Bolivia, mothers from the campo have become the engine of the Bolivian economy and leaders in their communities. The issue: they work in the informal sector, which is disapproved by the government and general population. Families from the countryside have lost their homes and traditional means of living as a product of policies in favor of foreign competition. Mothers have become the leaders of their homes and found jobs in the city that have further burdened their role responsibilities. Since there are few safe work opportunities that support indigenous migrant mothers’ maternal identities, they create their own jobs in spaces traditionally dominated by machista values. Despite intersecting obstacles of gender, class and race, mothers are resilient and capable of redefining spaces and reframing narratives of their motherhood. Drawing on ethnographic data, this article depicts how migrant mothers achieve empowerment, survival and control of their identities thanks to the agency they have found in traditional employment, entrepreneurship and cooperative entrepreneurship within the informal sector, as well as support from non-governmental organizations.


2020 ◽  
Vol 4 (3) ◽  
pp. 107-118 ◽  
Author(s):  
Andrii Zolkover ◽  
Venelin Terziev

The article deals with the analysis of the areas of research related to the shadow economy. The results of analyses show that financial market and financial intermediates become an essential part of the issues and that the topic of the problem of poverty among the urban population, low income, drugs abuse and problems of female employment, gender inequity in income in the papers which analyzed the shadow economy issues are very popular. The aim of the paper is to analyze the tendency in the scientific literature on the shadow economy to identify future research directions. For the analysis, the tools of VOSviewer, Scopus and Web of Science (WoS) analyses were used. This study is based on 5361 papers from Scopus and 3773 papers from Web of Science. The time sample of research was not limited for analysis. Time analysis showed that in 2014-2015 the number of papers dealing the shadow economy began to increase. At the same time, the focal point of research moved from general issues (estimation of shadow sector, impact on labour market etc.) to problem of transition from the informal to the formal Economy. In 2019 the number of papers which analyzed the the shadow economy was increased by 95 % compared with the 2014 year, according to Scopus database – by 29%. Mostly the papers with keyword “shadow” (informal, hidden etc.) economy were published under the following subject area, according to Scopus: Social science; Economics, Econometrics and Finance; Business, Management and Accounting; Environmental Science; Arts and Humanities, and according to WoS: Business Economics; Sociology; Public Administration; Government Law; Development Studies; Social Sciences Other Topics; Environmental Sciences Ecology; Area Studies. Most articles focused on shadow economy were published by the scientists from the USA, United Kingdom, India, Germany and South Africa. In 2019 considering the findings from Scopus the high ranked Studies in Systems Decision and Control, Journal of Business Ethics, Journal of Contemporary Asia, Cities stated to publish papers devoted to shadow economy. Such results prove that informal economy theme and its transition to formal is in the ongoing trends of the modern regulation. The findings from VOSviewer identified six clusters of the papers which investigate the shadow economy from the different points of views. The first most significant cluster merged the paper which contained the keywords as follows: informal sector, informal economy, unemployment, gender, urban economy, labour market, corruption etc. The papers in the second largest cluster deal with poverty among urban population, low income, drugs abuse and problems of female employment, gender inequity in income. The third biggest cluster focuses on criminal and ecological aspects of shadow economy. Keywords: Shadow Economy, Shadow Sector of Economy, Informal Economy, Informal Sector of Economy, Underground Economy, Underground Sector of Economy, Hidden Economy, Hidden Sector of Economy.


2017 ◽  
pp. 53-58
Author(s):  
Lam Huong Le

Objectives: Molar pregnancy is the gestational trophoblastic disease and impact on the women’s health. It has several complications such as toxicity, infection, bleeding. Molar pregnancy also has high risk of choriocarcinoma which can be dead. Aim: To assess the risks of molar pregnancy. Materials and Methods: The case control study included 76 molar pregnancies and 228 pregnancies in control group at Hue Central Hospital. Results: The average age was 32.7 ± 6.7, the miximum age was 17 years old and the maximum was 46 years old. The history of abortion, miscarriage in molar group and control group acounted for 10.5% and 3.9% respectively, with the risk was higher 2.8 times; 95% CI = 1.1-7.7 (p<0.05). The history of molar pregnancy in molar pregnancy group was 9.2% and the molar pregnancy risk was 11.4 times higher than control group (95% CI = 2.3-56.4). The women having ≥ 4 times births accounted for 7.9% in molar group and 2.2% in control group, with the risk was higher 3.8 times, 95% CI= 1.1-12.9 (p<0.05). The molar risk of women < 20 and >40 years old in molar groups had 2.4 times higher than (95% CI = 1.1 to 5.2)h than control group. Low living standard was 7.9% in molar group and 1.3% in the control group with OR= 6.2; 95% CI= 1.5-25.6. Curettage twice accounted for 87.5%, there were 16 case need to curettage three times. There was no case of uterine perforation and infection after curettage. Conclusion: The high risk molar pregnancy women need a better management. Pregnant women should be antenatal cared regularly to dectect early molar pregnancy. It is nessecery to monitor and avoid the dangerous complications occuring during the pregnancy. Key words: Molar pregnancy, pregnancy women


Author(s):  
Thomas Keymer

On the lapse of the Licensing Act in 1695, Thomas Macaulay wrote in his History of England, ‘English literature was emancipated, and emancipated for ever, from the control of the government’. It’s certainly true that the system of prior restraint enshrined in this Restoration measure was now at an end, at least for print. Yet the same cannot be said of government control, which came to operate instead by means of post-publication retribution, not pre-publication licensing, notably for the common-law offence of seditious libel. For many of the authors affected, from Defoe to Cobbett, this new regime was a greater constraint on expression than the old, not least for its alarming unpredictability, and for the spectacular punishment—the pillory—that was sometimes entailed. Yet we may also see the constraint as an energizing force. Throughout the eighteenth century and into the Romantic period, writers developed and refined ingenious techniques for communicating dissident or otherwise contentious meanings while rendering the meanings deniable. As a work of both history and criticism, this book traces the rise and fall of seditious libel prosecution, and with it the theatre of the pillory, while arguing that the period’s characteristic forms of literary complexity—ambiguity, ellipsis, indirection, irony—may be traced to the persistence of censorship in the post-licensing world. The argument proceeds through case studies of major poets and prose writers including Dryden, Defoe, Pope, Fielding, Johnson, and Southey, and also calls attention to numerous little-known satires and libels across the extended period.


Author(s):  
Stephen R. Barley

The four chapters of this book summarize the results of thirty-five years dedicated to studying how technologies change work and organizations. The first chapter places current developments in artificial intelligence into the historical context of previous technological revolutions by drawing on William Faunce’s argument that the history of technology is one of progressive automation of the four components of any production system: energy, transformation, and transfer and control technologies. The second chapter lays out a role-based theory of how technologies occasion changes in organizations. The third chapter tackles the issue of how to conceptualize a more thorough approach to assessing how intelligent technologies, such as artificial intelligence, can shape work and employment. The fourth chapter discusses what has been learned over the years about the fears that arise when one sets out to study technical work and technical workers and methods for controlling those fears.


Author(s):  
David D. Nolte

Galileo Unbound: A Path Across Life, The Universe and Everything traces the journey that brought us from Galileo’s law of free fall to today’s geneticists measuring evolutionary drift, entangled quantum particles moving among many worlds, and our lives as trajectories traversing a health space with thousands of dimensions. Remarkably, common themes persist that predict the evolution of species as readily as the orbits of planets or the collapse of stars into black holes. This book tells the history of spaces of expanding dimension and increasing abstraction and how they continue today to give new insight into the physics of complex systems. Galileo published the first modern law of motion, the Law of Fall, that was ideal and simple, laying the foundation upon which Newton built the first theory of dynamics. Early in the twentieth century, geometry became the cause of motion rather than the result when Einstein envisioned the fabric of space-time warped by mass and energy, forcing light rays to bend past the Sun. Possibly more radical was Feynman’s dilemma of quantum particles taking all paths at once—setting the stage for the modern fields of quantum field theory and quantum computing. Yet as concepts of motion have evolved, one thing has remained constant, the need to track ever more complex changes and to capture their essence, to find patterns in the chaos as we try to predict and control our world.


2021 ◽  
pp. 097317412098457
Author(s):  
Sarasij Majumder

In the context of declining women’s participation in the formal economy in India, this paper looks at how women’s work in the informal sector of jewellery-making emerges as gift. Gendered discourses on work turn men, who worked as labourers, into supervisors who monitor and control work situations and sort and grade final products in jewellery workshops. Following Anna Tsing, I argue that jewellery products start their lives as gifts but as they move from women (who are seen as housewives and family members) to men (who are seen as professionals/experts within the workshop) and beyond, they become commodities. This journey from gift to commodity within the workshop is made possible by a gendered discourse on work and by the dynamics within small landholding middle-caste households. Further, I underscore that women’s informal networks often help them cope with the emotional and affective tensions of work and the demands imposed on them by the men and their own households. Women facilitate the transition from gift to commodity by colluding amongst themselves to work in these informal spaces to maintain household status within peri-urban villages of West Bengal.


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