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Journal articles on the topic 'Informal sector (Economics) – Guatemala'

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Author: Grafiati

Published: 10 December 2022

Last updated: 28 January 2023

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1

Ramos Soto, Ana Luz. "El papel del sector informal en dos economías de América Latina: México y Guatemala / The Role of the Informal Sector in Two Latin American Economies: Mexico and Guatemala." RICEA Revista Iberoamericana de Contaduría, Economía y Administración 7, no. 14 (August 10, 2018): 82–106. http://dx.doi.org/10.23913/ricea.v7i14.118.

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Este texto tiene como objetivo general analizar el papel de la economía informal en dos países de América Latina, a saber, México y Guatemala. Dentro de los objetivos específicos, se establece realizar un perfil socioeconómico de las áreas de estudio, así como analizar los factores económicos y sociales que inciden en el crecimiento de la economía informal. La hipótesis que se trabaja en esta investigación es que la informalidad en economías como las de México y Guatemala reproduce la pobreza y absorbe la mano de obra. Asimismo, a través del modelo de análisis factorial, se identifican los factores económicos y sociales que inciden en el crecimiento de la economía informal en ambas economías. Estos factores son los siguientes: las políticas públicas implementadas por parte de los Gobiernos en ambas economías, el desempleo, los niveles de pobreza, la falta de capacitación, los niveles bajos de educación, el sector formal de la economía que se apoya en la informalidad para que distribuyan sus recursos, la falta de apoyos por parte del Gobierno y la falta de financiamiento para registrarse en la formalidad.

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2

Enrique Horbath, Jorge, and María Amalia Gracia. "Expresiones de la incorporación de personas guatemaltecas a la estructura productiva no formal de los municipios mexicanos transfronterizos con Guatemala." Frontera norte 34 (January 1, 2022): 1–25. http://dx.doi.org/10.33679/rfn.v1i1.2265.

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We address the trends in the incorporation of the Guatemalan workforce in the Mexico-Guatemala Crossborder Region (MGCR). Through quantitative methodology, 22 Mexican border municipalities are studied, and the microdata of the 2010 Population Census and the 2015 Intercensal Survey of INEGI are processed. It is observed that people of Guatemalan origin are initially engaged in agricultural activities, although due to the precarity in the Mexican countryside in the last decade, they have been linked mainly to informal activities and jobs in the service sector. The article provides empirical data to understand the phenomenon analyzed in the border municipalities as a whole. Even with the limitations of census sources, the study shows the relationship between job insecurity and the non-formal productive structures that prevail, as well as the economic and political-administrative asymmetries between the states in question.

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3

Lopez-Martin, Bernabe. "INFORMAL SECTOR MISALLOCATION." Macroeconomic Dynamics 23, no. 8 (June 1, 2018): 3065–98. http://dx.doi.org/10.1017/s1365100517001055.

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A quantitative framework of firm dynamics is developed where the size of the informal sector is determined by financial constraints and the burden of taxation. Improving access to credit for formal sector firms increases aggregate total factor productivity and output while reducing the size of the informal sector. Introducing size-dependent taxes reduces the gains from financial development as they incentivize firms to produce at a relatively limited scale. The aggregate effects of eliminating formal sector registration costs are positive but modest relative to previous theoretical models and the gains generated by financial development, and consistent with empirical evidence based on micro-level data.

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4

Dobson, Stephen, Carlyn Ramlogan-Dobson, and Eric Strobl. "Savings and the informal sector." International Review of Applied Economics 34, no. 2 (January 7, 2020): 217–34. http://dx.doi.org/10.1080/02692171.2019.1707783.

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5

Kar, Saibal, and Sugata Marjit. "Urban informal sector and poverty." International Review of Economics & Finance 18, no. 4 (October 2009): 631–42. http://dx.doi.org/10.1016/j.iref.2008.06.009.

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6

Yuki, Kazuhiro. "Urbanization, informal sector, and development." Journal of Development Economics 84, no. 1 (September 2007): 76–103. http://dx.doi.org/10.1016/j.jdeveco.2006.09.004.

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7

Beltrán, Arlette. "Informal sector competition and firm productivity." Applied Economics Letters 27, no. 15 (October 11, 2019): 1243–46. http://dx.doi.org/10.1080/13504851.2019.1676383.

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8

JOSHI, KAUSHAL, GLENITA AMORANTO, and RANA HASAN. "INFORMAL SECTOR ENTERPRISES: SOME MEASUREMENT ISSUES." Review of Income and Wealth 57 (May 2011): S143—S165. http://dx.doi.org/10.1111/j.1475-4991.2011.00449.x.

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9

Cuff, Katherine, Nicolas Marceau, Steeve Mongrain, and Joanne Roberts. "Optimal Policies with an Informal Sector." Journal of Public Economics 95, no. 11-12 (December 2011): 1280–91. http://dx.doi.org/10.1016/j.jpubeco.2010.10.010.

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10

Yuzon, Isagani F. "The Informal Labor Sector Amidst Globalization." Humanomics 21, no. 1 (January 2005): 21–29. http://dx.doi.org/10.1108/eb018898.

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11

Straub, Stéphane. "Informal sector: The credit market channel." Journal of Development Economics 78, no. 2 (December 2005): 299–321. http://dx.doi.org/10.1016/j.jdeveco.2004.09.005.

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12

Mizrahi, Roberto. "Las condiciones fundacionales del sector informal urbano." Desarrollo Económico 28, no. 112 (January 1989): 601. http://dx.doi.org/10.2307/3467004.

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13

BROOM, M., and CAROLYN JOYCE-CLARKE. "A Retail Perspective of the Informal Sector." South African Journal of Economics 58, no. 4 (December 1990): 290–97. http://dx.doi.org/10.1111/j.1813-6982.1990.tb00956.x.

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14

Leal Ordóñez, Julio César. "Tax collection, the informal sector, and productivity." Review of Economic Dynamics 17, no. 2 (April 2014): 262–86. http://dx.doi.org/10.1016/j.red.2013.07.004.

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15

GIBSON, BILL, and BRUCE KELLEY. "A CLASSICAL THEORY OF THE INFORMAL SECTOR." Manchester School 62, no. 1 (March 1994): 81–96. http://dx.doi.org/10.1111/j.1467-9957.1994.tb00647.x.

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16

Arvin-Rad, Hassan, Arnab K. Basu, and Maria Willumsen. "Economic reform, informal–formal sector linkages and intervention in the informal sector in developing countries: A paradox." International Review of Economics & Finance 19, no. 4 (October 2010): 662–70. http://dx.doi.org/10.1016/j.iref.2010.04.002.

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17

Engbom, Niklas, Gustavo Gonzaga, Christian Moser, and Roberta Olivieri. "Earnings inequality and dynamics in the presence of informality: The case of Brazil." Quantitative Economics 13, no. 4 (2022): 1405–46. http://dx.doi.org/10.3982/qe1855.

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Using rich administrative and household survey data spanning 34 years from 1985 to 2018, 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 sector. Higher‐order moments of the distribution of earnings changes show cyclical movements in Brazil that are similar to those in developed countries like the US. Relative to the formal sector, the informal sector is associated with a significant earnings penalty and higher earnings volatility for identical workers. Earnings changes of workers who switch from formal to informal (from informal to formal) employment are relatively negative (positive) and large in magnitude, dispersed, negatively (positively) skewed, and less leptokurtic. Our results suggest that informal employment is an imperfect insurance mechanism.

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18

Cuhadar, C. Esra. "Enlarging the Negotiation Table with Business Sector Actors: Who, How and with What Effect?" International Negotiation 24, no. 1 (March 7, 2019): 91–116. http://dx.doi.org/10.1163/15718069-24011146.

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Abstract This article examines the inclusion of business sector actors in peace and political transition negotiations. Looking across twenty-two cases, this study examines who has been included as business sector representatives in these negotiations and through which inclusion modalities. The study finds that business sector actors were included primarily through consultation modalities in officially mandated meetings running parallel to negotiations, informal consultations, or as part of public consultations. Second most common is direct representation of business sector actors at the negotiation table. Less common is business sector inclusion in high-level track one-and-a-half workshops and inclusive commissions. The article then focuses on the impact of business actors on negotiations. Four cases of business inclusion are discussed in detail – Somalia, Kenya, Guatemala and El Salvador – comparing and contrasting supportive and obstructive examples.

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19

KAR, Saibal, Biswajit MANDAL, Sugata MARJIT, and Vivekananda MUKHERJEE. "SEEKING RENT IN THE INFORMAL SECTOR." Annals of Public and Cooperative Economics 91, no. 1 (October 4, 2019): 151–64. http://dx.doi.org/10.1111/apce.12253.

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20

McCaig, Brian, and Nina Pavcnik. "Informal Employment in a Growing and Globalizing Low-Income Country." American Economic Review 105, no. 5 (May 1, 2015): 545–50. http://dx.doi.org/10.1257/aer.p20151051.

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We document several facts about workforce transitions from the informal to the formal sector in Vietnam, a fast growing, industrializing, and low-income country. First, younger workers, particularly migrants, are more likely to work in the formal sector and stay there permanently. Second, the decline in the aggregate share of informal employment occurs through changes between and within birth cohorts. Third, younger, educated, male, and urban workers are more likely to switch to the formal sector than other workers initially in the informal sector. Poorly educated, older, female, rural workers face little prospect of formalization. Fourth, formalization coincides with occupational upgrading.

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21

Williams, Colin C., Ioana Alexandra Horodnic, and Jan Windebank. "Evaluating the internal dualism of the informal sector: evidence from the European Union." Journal of Economic Studies 44, no. 4 (September 11, 2017): 605–16. http://dx.doi.org/10.1108/jes-07-2016-0144.

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Purpose To transcend the current debates about whether participation in the informal sector is a result of informal workers “exclusion” or their voluntary “exit” from the formal sector, the purpose of this paper is to propose and evaluate the existence of a dual informal labour market composed of an exit-driven “upper tier” and exclusion-driven “lower-tier” of informal workers. Design/methodology/approach To do this, data from a 2013 Eurobarometer survey involving 27,563 face-to-face interviews across the European Union is reported. Findings The finding is that in the European Union, there is a dual informal labour market with those participating in the informal sector due to their exclusion from the formal sector being half the number of those doing so to voluntarily exit the formal sector. Using a logistic regression analysis, the exclusion-driven “lower tier” is identified as significantly more likely to be populated by the unemployed and those living in East-Central Europe and the exit-driven “upper tier” by those with few financial difficulties and living in Nordic nations. Research limitations/implications The results reveal the need not only to transcend either/or debates about whether participants in the informal sector are universally exclusion-or exit-driven, and to adopt a both/and approach that recognises a dual informal labour market composed of an exit-driven upper tier and exclusion-driven lower tier, but also for wider research on the relative sizes of these two tiers in individual countries and other global regions, along with which groups populate these tiers. Originality/value This is the first evaluation of the internal dualism of the informal sector in the European Union.

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22

Dijkstra, Bouwe R. "Good and Bad Equilibria with the Informal Sector." Journal of Institutional and Theoretical Economics 167, no. 4 (2011): 668. http://dx.doi.org/10.1628/jite-2011-0008.

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23

Theisen, Theis. "Tanzanian formal sector workers' participation in informal production." Applied Economics 37, no. 21 (December 10, 2005): 2469–85. http://dx.doi.org/10.1080/00036840500366197.

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24

Gupta, Manash Ranjan. "Informal sector and informal capital market in a small open less-developed economy." Journal of Development Economics 52, no. 2 (April 1997): 409–28. http://dx.doi.org/10.1016/s0304-3878(96)00445-2.

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25

Mughal, Khurrum S., Friedrich G. Schneider, Faheem Aslam, and Alishba Tahir. "Money Multiplier Bias Due to Informal Sector: An Extension of the Existing Money Multiplier." South Asian Journal of Macroeconomics and Public Finance 10, no. 2 (January 13, 2021): 139–57. http://dx.doi.org/10.1177/2277978720979888.

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To demonstrate the impact of informal economy on the official money multiplier in currency supply, we present an extension of the basic money multiplier model. The influence of economic policies may differ if they are based only on official statistics without considering the informal sector. Since most of the activities in informal sector are hidden from authorities, it is widely assumed that these activities are based on cash transactions, a part of total currency that cannot be attracted towards deposits due to the holder’s fear of prosecution and taxation, etc. Therefore, it is expected that such currency holdings can give biased results by playing a role in the money multiplier, a phenomenon that is usually ignored while attempting to alter money supply. The article also indicates that because of informal sector, the currency deposit ratio in the money multiplier is smaller than expected (depending on size of the informal sector), leading to a larger multiplier effect. JEL Classifications: E26, E51, O17

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26

Mahata, Sushobhan, Rohan Kanti Khan, and Ranjanendra Narayan Nag. "Economic Recession, Informal Sector and Skilled–Unskilled Wage Disparity in a Developing Economy: A Trade-Theoretical Analysis." Foreign Trade Review 55, no. 2 (January 24, 2020): 168–88. http://dx.doi.org/10.1177/0015732519894132.

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The paper analyses some selective aspects of economic crises, namely skilled-sector recession, reversed international migration of labour and decline in foreign capital inflow on the informal sector employment and wage rate in developing economies and seeks to explain the non-monotonic effect on the informal sector both across nations and within nation across sectors. In so doing, we develop three-sector General Equilibrium models under two different scenarios which may apply to a large class of emerging market economies. In the first model, we have a traded informal export sector, and the role of the non-traded informal sector in the presence of credit market imperfection is analysed in the second model. Skilled-sector recession produces a favourable (unfavourable) effect on the workers employed in the traded informal sector (non-traded informal sector) due to an induced complementary relationship between the high-skilled export sector and the informal sector. A fall in emigration level of skilled or unskilled worker and a decline in foreign capital inflow hurt the workers in the informal traded sector, while the workers in the non-traded informal sector gain. The results of the paper reflect contradictions of an emerging economy, which is essentially hybrid economics in which capitalist nucleus has a conditional-conditioning relationship with an archaic structure. JEL Codes: F13, J31

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27

Otekunrin, Adegbola, Kudzanai Matowanyika, and Chena Tafadzwa. "An Analysis of the Aspects Hampering Informal Sector Tax Administration: Case of the Zimbabwe Revenue Authority." International Journal of Financial Research 12, no. 5 (June 10, 2021): 10. http://dx.doi.org/10.5430/ijfr.v12n5p10.

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The main focus of the study was to ascertain the potential of the informal sector to provide much-needed revenue for the government. It also focused on the challenges faced in informal sector revenue taxation and possible solutions thereof. The Zimbabwe revenue authority has maintained presumptive tax for the sector and subcontracting to the city of Harare for the collection of revenue from the informal sector. Despite all this, the industry still underperformed in terms of revenue raised. The study sought to find out challenges of taxing the informal sector, the potential of the informal sector, the effectiveness of the Zimbabwe revenue authority in taxing the informal sector, and possible ways of improving the taxing of this rampant sector. The study found out that there is great potential from the informal sector, but turning it into tangible gains has been elusive due to political interference, lack of proper infrastructure, unfair application of tax laws and general mistrust of the government. The study recommended that the government ought to play an active role by making sure there is the political will to make sure that players in the informal sector contribute to the focus in line with Adam Smith’s general principles which include fairness and equity. There is a need for staffing levels to be commensurate with the workloads and also the motivation of the employees. The research also recommended the adaptation of Information Communication Technology to ensure accountability and traceability of transactions in the informal sector as they move away from a cash-based system recommendation.

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28

Bose, Pinaki. "Formal–informal sector interaction in rural credit markets." Journal of Development Economics 56, no. 2 (August 1998): 265–80. http://dx.doi.org/10.1016/s0304-3878(98)00066-2.

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29

FUKUCHI, Takao. "A SIMULATION ANALYSIS OF THE URBAN INFORMAL SECTOR." Developing Economies 36, no. 3 (September 1998): 225–56. http://dx.doi.org/10.1111/j.1746-1049.1998.tb00218.x.

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30

Bhattacharya, Snehashish, and Surbhi Kesar. "Possibilities of Transformation: The Informal Sector in India." Review of Radical Political Economics 50, no. 4 (September 26, 2018): 727–35. http://dx.doi.org/10.1177/0486613418793989.

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We identify a basic dualism between capitalist and noncapitalist spaces within the vast informal sector in India, and show that this dualism has been reproduced and reinforced during the past decade of high economic growth. This calls into question the idea of capitalist transition that informs much of the discourse on economic development. We provide some preliminary arguments about the nature of this dualism and the process of reproduction of the noncapitalist economic space. JEL Classifications: O14, O17, J46

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31

WILLIAMS, COLIN C. "POLICY APPROACHES TOWARD INFORMAL SECTOR ENTREPRENEURSHIP: AN OVERVIEW." Journal of Developmental Entrepreneurship 26, no. 02 (June 2021): 2150013. http://dx.doi.org/10.1142/s1084946721500138.

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This paper reviews the policy options and measures available for tackling informal sector entrepreneurship. Four possible policy options are critically reviewed: doing nothing, eradicating informal entrepreneurship; eradicating formal entrepreneurship and formalizing informal entrepreneurship. Concluding that the latter is the most feasible option, policy measures for formalizing informal entrepreneurship are then reviewed. On the one hand, the range of policy measures that can be used by enforcement authorities (tax authorities, labor inspectorates and social security institutions) responsible for tackling informal entrepreneurship are evaluated. On the other hand, and to tackle the broader structural determinants of informal entrepreneurship, macro-level reforms are identified by evaluating critically the validity of the purported determinants proposed in the modernization, political economy, neo-liberal and neo-institutionalist theories. The outcome is an understanding of the full range of policy initiatives required by governments seeking to formalize informal sector entrepreneurship.

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32

Naidoo, GP, and TI Fenyes. "Quantitative linkages between the formal and informal sectors in the South African economy." South African Journal of Economic and Management Sciences 6, no. 4 (November 15, 2003): 693–723. http://dx.doi.org/10.4102/sajems.v6i4.1513.

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The need to quantify the impact of the informal sector has thus far not received adequate attention so as to allow policy makers, informal sector enterprises and the formal sector to determine which specific areas of the economy should be further analysed for the purposes of ascertaining the linkages that exist between the formal and informal sectors. In this study, an attempt is made to quantify the linkages between the formal and informal sector, using the 1993 South African Input–Output Table. By disaggregating the formal and informal sectors, it has been possible to determine specific coefficients for both sectors. The “importexport” concept has been used to show how these sectors are interrelated. The multiplier analysis confirms that certain sectors of the informal sector may be more responsive to changes in the final demand than the formal sector.

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33

La Porta, Rafael, and Andrei Shleifer. "Informality and Development." Journal of Economic Perspectives 28, no. 3 (August 1, 2014): 109–26. http://dx.doi.org/10.1257/jep.28.3.109.

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In developing countries, informal firms account for up to half of economic activity. They provide livelihood for billions of people. Yet their role in economic development remains controversial with some viewing informality as pent-up potential and others viewing informality as a parasitic organizational form that hinders economic growth. In this paper, we assess these perspectives. We argue that the evidence is most consistent with dual models, in which informality arises out of poverty and the informal and formal sectors are very different. It seems that informal firms have low productivity and produce low-quality products; and, consequently, they do not pose a threat to the formal firms. Economic growth comes from the formal sector, that is, from firms run by educated entrepreneurs and exhibiting much higher levels of productivity. The expansion of the formal sector leads to the decline of the informal sector in relative and eventually absolute terms. A few informal firms convert to formality, but more generally they disappear because they cannot compete with the much more-productive formal firms.

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34

BANDOPADHYAY, TITAS KUMAR. "FOREIGN ENCLAVES, INFORMAL SECTOR AND URBAN UNEMPLOYMENT: A THEORETICAL ANALYSIS." Singapore Economic Review 54, no. 01 (April 2009): 89–99. http://dx.doi.org/10.1142/s0217590809003136.

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We consider a small open Harris-Todaro (1970) economy with a rural foreign enclave and urban informal sector. We introduce consumption-efficiency relation to explain the simultaneous existence of informal sector and urban unemployment. The main objective of this paper is to analyse the effects of removal of subsidy, given to the foreign enclave, on urban unemployment and on domestic factor income. Our results shed light on the debate: whether subsidies should be removed from the agri-export sector.

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35

Dutta, Meghna. "Does Informality Hold the Key to Growth and Stability?" Applied Economics Quarterly: Volume 66, Issue 1 66, no. 1 (January 1, 2020): 29–45. http://dx.doi.org/10.3790/aeq.66.1.29.

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This paper attempts to analyse the impact of a prevailing informal sector on the dynamics of growth and inflation in developing economies. The high growth rates posited by most developing economies in the presence of a huge informal sector suggest that this sector might not be the malefactor as often indicated. The main results show that the informal economy not only contributes to economic growth but the firms also help to significantly reduce inflation by generating employment and hence maintain political stability in the economy despite the existence of a huge pool of “surplus labourers”.

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36

Yabuuchi, Shigemi, and Hamid Beladi. "Urban unemployment, informal sector and development policies." Journal of Economics 74, no. 3 (October 2001): 301–14. http://dx.doi.org/10.1007/bf01231352.

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37

Mandal, Biswajit. "Recessionary Shock, Capital Mobility and the Informal Sector." South Asia Economic Journal 17, no. 1 (February 9, 2016): 149–62. http://dx.doi.org/10.1177/1391561415621828.

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38

Chandra, Vandana, and M. Ali Khan. "Foreign Investment in the Presence of an Informal Sector." Economica 60, no. 237 (February 1993): 79. http://dx.doi.org/10.2307/2554732.

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39

Piggott, John, and John Whalley. "VAT Base Broadening, Self Supply, and the Informal Sector." American Economic Review 91, no. 4 (September 1, 2001): 1084–94. http://dx.doi.org/10.1257/aer.91.4.1084.

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40

TELLA, S. A. "The Consumption Function and Informal Sector Credit in Nigeria." South African Journal of Economics 66, no. 4 (December 1998): 256–64. http://dx.doi.org/10.1111/j.1813-6982.1998.tb01266.x.

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41

Williams, Colin C., and Anjula Gurtoo. "Women entrepreneurs in the Indian informal sector." International Journal of Gender and Entrepreneurship 3, no. 1 (March 29, 2011): 6–22. http://dx.doi.org/10.1108/17566261111114953.

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42

Hutajulu, Dinar Melani, Rr Retno Sugiharti, Jihad Lukis Panjawa, Jalu Aji Prakoso, and Lorentino Togar Laut. "Determinants of Informal Labor Income: Does Demographic Matters?" Jurnal Ekonomi dan Studi Pembangunan 13, no. 2 (December 16, 2021): 112. http://dx.doi.org/10.17977/um002v13i22021p112.

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In informal sector, labor is unnecessary to have a higher degree and special skill. So that, working in informal sector is one of the solutions for labor with low skill to gain an income and move out from poverty. This research aims to analyse determinant factors of labor income in informal sector, focused on demographic and social economics variables. By using SAKERNAS data from Indonesian Statistics, this research is adopted Mincer Wage Equation and conducted by Ordinary Least Square Method. The result shows that Mincer Equation still a robust model for modelling wage factor. Labor with more educational backgrounds come up with higher income since the education will refine the workability and capability to improve productivity. In the other hand, labor in informal sector who live in the village earn more income than those who work in the city area. This conclude that by right policy, informal sector can develop higher income as high as formal sector.

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43

Elveren, Adem, and Gökçer Özgür. "The effect of informal economy on income inequality: Evidence from Turkey." Panoeconomicus 63, no. 3 (2016): 293–312. http://dx.doi.org/10.2298/pan1603293e.

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By considering the manufacturing pay inequality index as a proxy for overall income inequality and a novel index for the informal economy, this study analyzes the relationship between income inequality and the size of the informal economy in Turkey for the first time during the period of 1963-2008. For this purpose, we employ a time-series analysis with the Johansen cointegration test, a vector error correction model and the Granger causality tests. The findings suggest that while an increase in income inequality and foreign trade competitiveness leads to an expansion of the informal sector, unemployment has negative effects on the informal sector.

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44

Ogando, Ana Carolina, Sally Roever, and Michael Rogan. "Gender and informal livelihoods." International Journal of Sociology and Social Policy 37, no. 7/8 (July 11, 2017): 435–51. http://dx.doi.org/10.1108/ijssp-06-2016-0077.

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Purpose This paper explores the perceptions and experiences of women and men who work as informal waste collectors in four different cities. The purpose of this paper is to map out how and to what extent occupational, political-legal, economic and social dynamics are experienced differently by gender in a highly vulnerable segment of the urban informal economy, and explore gender differences in these workers’ coping strategies and the levels of action they develop to protect their livelihoods. Design/methodology/approach The analysis is based on a mixed methods study which combined a quantitative survey of informal workers with a qualitative participatory methodology. Study participants were drawn from a purposive sample of informal workers who belong to, or are affiliated with, membership-based workers’ organisations. The sample consists of waste pickers (n=614) from Belo Horizonte, Brazil; Bogotá, Colombia; Durban, South Africa; and Nakuru, Kenya. Findings The data show that despite significant differences between women and men upon entry into (informal) employment, their perceptions of key drivers and impacts are largely similar, with the exception of concerns around various types of physical security among women. They also indicate that levels of action among men and women waste pickers are only moderately influenced by gender, but are strongly influenced by the degree of organisation in the sector and the symbolic assets held by workers. The findings also illustrate the way in which gendered power dynamics operate within the informal recycling sector and how different levels of sector organisation and development often contribute to opportunities for collective action and, in turn, a reduction in gendered vulnerabilities. Originality/value The study offers a new policy angle which connects the level of sector organisation and development with the levels of action taken by informal workers in adapting to different types of shocks, as well as what this means in terms of gender empowerment.

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de V. Cavalcanti, Tiago V., and Anne P. Villamil. "OPTIMAL INFLATION TAX AND STRUCTURAL REFORM." Macroeconomic Dynamics 7, no. 3 (March 25, 2003): 333–62. http://dx.doi.org/10.1017/s1365100502020096.

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This paper analyzes the optimal inflation tax in economies with structural imperfections in labor, commodity, and currency markets. The Friedman rule is a classic result in economics that claims that the optimal monetary policy is to set a zero nominal interest rate. This Ramsey equilibrium is robust in a wide range of environments without imperfections in input, output, or financial markets. In many developing countries, however, a large fraction of activity takes place in the “informal” sector. Roughly speaking, the informal sector is the untaxed and unregulated market sometimes referred to as the underground economy. We obtain three results. First, we show that when structural imperfections such as an informal sector exist, the optimal inflation tax is positive. Second, we show that structural imperfections introduce an important asymmetry in the welfare cost function. Third, we provide quantitative results.

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Dessy, Sylvain, and Stéphane Pallage. "Taxes, inequality and the size of the informal sector." Journal of Development Economics 70, no. 1 (February 2003): 225–33. http://dx.doi.org/10.1016/s0304-3878(02)00086-x.

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Koujianou Goldberg, Pinelopi, and Nina Pavcnik. "The response of the informal sector to trade liberalization." Journal of Development Economics 72, no. 2 (December 2003): 463–96. http://dx.doi.org/10.1016/s0304-3878(03)00116-0.

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Nguimkeu, Pierre. "A structural econometric analysis of the informal sector heterogeneity." Journal of Development Economics 107 (March 2014): 175–91. http://dx.doi.org/10.1016/j.jdeveco.2013.12.001.

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Boadway, Robin, and Motohiro Sato. "Optimal Tax Design and Enforcement with an Informal Sector." American Economic Journal: Economic Policy 1, no. 1 (January 1, 2009): 1–27. http://dx.doi.org/10.1257/pol.1.1.1.

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An optimal commodity tax approach is taken to compare trade taxes and VATs when some commodities are produced informally. Trade taxes apply to all imports and exports, including intermediate goods, while the VAT applies only to sales by the formal sector and imports. The VAT achieves production efficiency within the formal sector, but, unlike trade taxes, cannot indirectly tax profits. Making the size of the informal sector endogenous in each regime is potentially decisive. The ability of the government to change the size of the informal sector through costly enforcement may also tip the balance in favor of the VAT. (JEL E26, H21, H25)

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Hays-Mitchell, Maureen, and Cathy A. Rakowski. "Contrapunto: The Informal Sector Debate in Latin America." Economic Geography 72, no. 4 (October 1996): 470. http://dx.doi.org/10.2307/144531.

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