scholarly journals The Impact of Reforms in the Field of Labour Taxation on Dynamics of Informal Employment in Russia

2020 ◽  
pp. 103-114
Author(s):  
D. V. Nekipelova
Keyword(s):  
Informal Employment ◽  
Labour Taxation ◽  
The Impact

The Random Forest Method in Research of Impact of Macroeconomic Indicators of Regional Development on Informal Employment Rate

2020 ◽  
Vol 27 (6) ◽  
pp. 37-55
Author(s):  
E. V. Zarova ◽  
E. I. Dubravskaya
Keyword(s):  
Random Forest ◽  
Regional Development ◽  
Russian Federation ◽  
Regional Level ◽  
Informal Employment ◽  
Macroeconomic Factors ◽  
Random Forest Method ◽  
Macroeconomic Indicators ◽  
The Russian Federation ◽  
The Impact

The topic of quantitative research on informal employment has a consistently high relevance both in the Russian Federation and in other countries due to its high dependence on cyclicality and crisis stages in economic dynamics of countries with any level of economic development. Developing effective government policy measures to overcome the negative impact of informal employment requires special attention in theoretical and applied research to assessing the factors and conditions of informal employment in the Russian Federation including at the regional level. Such effects of informal employment as a shortfall in taxes, potential losses in production efficiency, and negative social consequences are a concern for the authorities of the federal and regional levels. Development of quantitative indicators to determine the level of informal employment in the regions, taking into account their specifics in the general spatial and economic system of Russia are necessary to overcome these negative effects. The article proposes and tests methods for solving the problem of assessing the impact of hierarchical relationships on macroeconomic factors at the regional level of informal employment in constituent entities of the Russian Federation. Majority of the works on the study of informal employment are based on basic statistical methods of spatial-dynamic analysis, as well as on the now «traditional» methods of cluster and correlation-regression analysis. Without diminishing the merits of these methods, it should be noted that they are somewhat limited in identifying hidden structural connections and interdependencies in such a complex multidimensional phenomenon as informal employment. In order to substantiate the possibility of overcoming these limitations, the article proposes indicators of regional statistics that directly and indirectly characterize informal employment and also presents the possibilities of using the «random forest» method to identify groups of constituent entities of the Russian Federation that have similar macroeconomic factors of informal employment. The novelty of this method in terms of research objectives is that it allows one to assess the impact of macroeconomic indicators of regional development on the level of informal employment, taking into account the implicit, not predetermined by the initial hypotheses, hierarchical relationships of factor indicators. Based on the generalization of the studies presented in the literature, as well as the authors’ statistical calculations using Rosstat data, the authors came to the conclusion about the high importance of macroeconomic parameters of regional development and systemic relationships of macroeconomic indicators in substantiating the differentiation of the informal level across the constituent entities of the Russian Federation.

Gambling with the State: Land Titles and Personhood Rights among the Urban Poor in Indonesia

2015 ◽  
Vol 2 (2) ◽  
pp. 285-300 ◽  
Author(s):  
Lilis MULYANI
Keyword(s):  
Health Care ◽  
Social Security ◽  
Land Tenure ◽  
Urban Poor ◽  
The State ◽  
Informal Employment ◽  
Land Titling ◽  
Formal Employment ◽  
Land Titles ◽  
The Impact

AbstractDue to the pressures of urbanization, the urban poor often find themselves trapped in illegal settlements and informal employment. As housing is not affordable and formal employment is inaccessible to them because of their lack of education and skills, they live a precarious existence with insecure land tenure and employment. Discriminated against by the state on the grounds of their illegal status, the urban poor are unable to establish their identity and personhood rights as urban citizens, and so cannot access basic rights such as health care and social security. This article is based on fieldwork in Surakarta in Indonesia which studied the impact of a land-titling programme in an area previously characterized by informal tenure. It finds that the legitimation provided by land titles had a significant impact upon the lives of the residents, enabling them to access other personhood rights.

The Employment Effects of Lump-Sum and Contingent Job Insurance Policies: Evidence from Brazil

2020 ◽  
pp. 1-45
Author(s):  
Diogo G. C. Britto
Keyword(s):  
Labor Market ◽  
Unemployment Insurance ◽  
Informal Employment ◽  
Job Displacement ◽  
Severance Pay ◽  
Employment Effects ◽  
Insurance Policies ◽  
Lump Sum ◽  
Formal Employment ◽  
The Impact

Lump-sum job displacement policies (e.g. severance pay) are often presented as a better alternative to contingent policies (e.g. unemployment insurance) in the context of developing countries, under the rationale that the former are less harmful to formal employment as they do not incentivize substitution from formal to informal jobs. First, this paper provides original evidence on the employment effects of lump-sum income in the context of a developing country with high labor informality. Using Brazilian data, a regression discontinuity (RD) design shows that a transfer equivalent to 15 days of earnings (i) increases the duration out of a formal job by 1.9 weeks, (ii) reduces monthly earnings in the next job by 1.6%, and (iii) reduces total earnings in the formal labor market by 3.6% over a three-year period. Second, the paper studies the impact of a one-month extension in unemployment insurance (UI) on a comparable sample of displaced workers. UI is shown to have a stronger impact on the duration out of a formal job compared with a lump-sum transfer. In addition, a novel exercise matching administrative and survey data shows that 57% of the decrease in formal employment caused by UI is compensated by an increase in the incidence of informal employment. However, workers receiving the UI extension partially recover the initial employment loss over time in such a way that the adverse impact on employment over a three-year period is similar compared with the lump-sum transfer. Moreover, UI is found to be less harmful to re-employment wages, possibly because it improves the worker's bargaining power as it offers insurance against the duration of joblessness. Overall, the UI extension is less detrimental to total earnings in the formal labor market over a three-year period. Hence, although these findings indicate that contingent job insurance policies have a stronger impact on the initial duration out of a formal job and indeed incentivize informal employment, they do not support the notion that lump-sum policies are less harmful to formal employment and earnings in the medium term.

Informality: does financial development matter?

2017 ◽  
Vol 37 (1/2) ◽  
pp. 16-32
Author(s):  
Aeggarchat Sirisankanan
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Occupational Choice ◽  
Choice Model ◽  
Negative Relationship ◽  
Informal Employment ◽  
Policy Makers ◽  
Content Type ◽  
Self Employment ◽  
The Impact

Purpose Financial development may be an alternative policy for controlling informal employment. However, there is still an ambiguous relationship between financial development and informal employment. The purpose of this paper is to examine the impact of financial development on informal employment. Design/methodology/approach The paper is based on both the occupational choice model and on the concept of financial development and economic growth which can produce either a positive or negative relationship between financial development and informal employment. Consequently, the author formulated empirical specifications and applied an econometric technique to examine the actual relationship. Findings The empirical results indicated that financial development can reduce informal employment. The author also found that the relationship between financial development and informal employment varies, depending on the level of economic growth and development. Research limitations/implications Even though there are many types of informal employment, this paper uses only informal self-employment as a proxy of informal employment. To implement it properly, all types of informal employment should also be examined. Practical implications Becoming informal employment depends on several factors; policy makers for each country should carefully examine the specific relationship between financial development and informal employment for their own country. Social implications The paper presents alternative choices for policy makers to control informal employment by increasing financial development, especially in developing countries. This policy also includes promoting microfinance which will contribute to both formality and increasing the strength of the community. Originality/value From the two possible impacts of financial development on informal employment, this paper affirms that financial development can reduce informal employment.

scholarly journals Depressive Symptoms among Chinese Informal Employees in the Digital Era

2021 ◽  
Vol 18 (10) ◽  
pp. 5211
Author(s):  
Yang Cai ◽  
Weiwei Kong ◽  
Yongsheng Lian ◽  
Xiangxin Jin
Keyword(s):  
Mental Health ◽  
Labor Market ◽  
Depressive Symptoms ◽  
Rapid Development ◽  
Informal Employment ◽  
Probit Regression ◽  
Cross Sectional ◽  
Data Set ◽  
Digital Era ◽  
The Impact

The mental health status of informal employees is rarely studied in China. Nowadays, new economic forms such as gig economy and platform economy are emerging with the rapid development of information and communication technology, which has brought great changes to the labor market, especially to the informal employment field. Thus, it is of great significance to investigate the depressive symptoms among informal employees in the digital era. Based on the cross-sectional data of CFPS (China Family Panel Studies, 2018), this study takes a quantitative analysis framework to explore and analyze the association between informal employment and depressive symptoms in the Chinese labor market. After screening, a data set of 8893 employees (60.5% male and 39.5% female) was established. Several statistical methods, including the Mann–Whitney test and probit regression model, were used in the sample data analysis. The results show that the prevalence of depressive symptoms among informal employees is significantly higher than that among formal employees. Depressive symptoms are highly related to informal work and other factors, such as education, physical health, household income, etc. The impact of Internet use on informal employees’ depressive symptoms is not significant. The mental health inequality between formal and informal employees still exists in the digital era, and corresponding labor market regulations and social policies should be perfected to address this issue.

scholarly journals Labour Taxation and its Impact on Economic Growth – Complex Analysis

2018 ◽  
Vol 9 (1) ◽  
pp. 49-61
Author(s):  
Rudolf Macek
Keyword(s):  
Economic Growth ◽  
Complex Analysis ◽  
Negative Relationship ◽  
Income Taxes ◽  
Point Of View ◽  
Tax Rates ◽  
Dynamic Panel Regression ◽  
Labour Taxation ◽  
The Impact ◽  
Implicit Tax Rates

Abstract The aim of the article is to provide a complex analysis of labour taxation impact on economic growth in OECD countries. As main approximators of taxation, implicit tax rates and the World Tax Index are used. Methods and tests of dynamic panel regression with the Arellano-Bond estimator are used from the methodological point of view. From the results of complex analysis, it is evident that there exists a non-linear relationship between tax revenues (implicit tax rates, world tax index) and tax burden (tax rates). There also exists a negative relationship between labour taxation and economic growth and the impact of labour taxation is the most harmful for economic growth. Therefore, in an effort to stimulate economic growth, labour taxation expressed by personal income taxes and social security contributions should be reduced.

scholarly journals Women’s professional activity as an element of human capital management in the aspect of non-formal employment

2018 ◽  
Vol 16 (4) ◽  
pp. 375-383
Author(s):  
Monika Pasternak-Malicka ◽  
Aldona Migała-Warchoł
Keyword(s):  
Human Capital ◽  
Linear Regression ◽  
Informal Employment ◽  
Professional Activity ◽  
Occupational Activity ◽  
Linear Regression Method ◽  
Capital Management ◽  
Human Capital Management ◽  
Regression Methods ◽  
The Impact

The aim of the article is an attempt to assess the impact of women’s occupational activity on the tendency to take up informal employment as an element of human capital management. The paper attempts to assess the relationship between the unemployment rate and the employment rate and the share of informal work in GDP. Methodology: The implementation of the objective required the use of statistical methods, in particular, linear regression methods. Results: The publication describes the nature of informal employment, the level of professional activity of women in the selected European Union countries in 2017. Based on statistical data, an attempt was made to assess the impact of professional activity among women on non-formal work based on the linear regression method.

scholarly journals Problems of Evaluation of Temporary Employment’s Influence on Injuries and Occupational Diseases

2018 ◽  
Keyword(s):  
Informal Economy ◽  
Occupational Diseases ◽  
Occupational Safety ◽  
Temporary Employment ◽  
Informal Employment ◽  
Labor Protection ◽  
Employment Policy ◽  
National Accounts ◽  
The World ◽  
The Impact

In the article special attention is paid to the problems of estimating the effect of temporary employment on injuries and occupational diseases. The purpose of the research is to form theoretical and methodological basis for assessing the impact of temporary and informal employment in its broad sense on the level of occupational safety to study the connection between the nature of employment and high risk of injury in the workplace. Various definitions of temporary employment and concepts related to this term are analyzed, which are often used in scientific research. The main characteristics of concepts such as temporary employment, informal economy, informal sector, informal employment, conditional employment are considered. It is substantiated that statistical observation of informal employment is important not only for the improvement of employment policy and statistics of national accounts, but also for the formulation and implementation of labor protection programs, poverty reduction, promotion of small and medium enterprises, productivity growth and socio-economic development of territorial units, creating new jobs. The analysis of the organization of labor and the state of labor markets by countries of the world based on indicators of under-utilization of labor force is carried out. The tendencies of changes in the share of workers with temporary employment by the countries of the world and the changes in the organization of labor influence the labor protection are analyzed. Risk factors that distinguish the work of temporary workers from other types of employment are identified and analyzed, as well as factors that explain the causes of lower levels of occupational safety among temporary employees. The peculiarities of the research of temporary agency workers are determined. It is proved that the lack of mechanisms for monitoring the necessary aspects of the functioning of the labor market impedes the work of regulators, law enforcement agencies and politicians who, in the case of availability of relevant information, can act to strengthen national labor safety standards.

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