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Measuring the global shadow economy : the prevalence of informal work and labour
\"This book brings together two leading researchers in the field to provide a comprehensive overview of the shadow economy from a global perspective. Reviewing the advantages and disadvantages of different ways of measuring the informal sector, the authors evaluate its size and key determinants across the world. Williams and Schneider clearly establish the persistence and prevalence of the shadow economy, analysing the narrowness of existing policy approaches and explaining how these fail to address the key factors for its existence and may even exacerbate the problem. Proposing an alternative way forward, the authors argue that little headway will ever be made in reducing the shadow economy until there are changes not only to the character of formal institutions but also informal institutions (the values, beliefs and norms of citizens) through the introduction of macro-level structural changes. This timely, cutting-edge review of the global shadow economy and how it can be measured and tackled is an invaluable resource for postgraduate students, researchers and policy-makers, particularly those with a interest in tax evasion and informal labour.\"--Page 4 of cover.
Book
DID THE 2007 LEGAL ARIZONA WORKERS ACT REDUCE THE STATE'S UNAUTHORIZED IMMIGRANT POPULATION?
We test for an effect of Arizona's 2007 Legal Arizona Workers Act (LAWA) on the proportion of the state's population characterized as noncitizen Hispanic. We use the synthetic control method to select a group of states against which Arizona's population trends can be compared. We document a notable and statistically significant reduction in the proportion of the Hispanic noncitizen population in Arizona. The decline observed matches the timing of LAWA's implementation, deviates from the time series for the synthetic control group, and stands out relative to the distribution of placebo estimates for other states in the nation.
Journal Article
Policy opportunities and challenges from the COVID-19 pandemic for economies with large informal sectors
In the developing world, the informal economy can account for as much as 80% of the population. I focus on the urban component of informality, where both informal employment and informal enterprises are especially vulnerable to the pandemic-induced economic shock. I explain the complex nature of informality, some of the reasons for its persistence and its interdependency with the formal economy, especially in the manufacturing sector, through global value chains (GVCs). Large firms (whether MNEs or domestic firms) sub-contract considerable activity to informal enterprises, but this is precarious in character. I suggest the crisis provides the circumstances for greater active engagement with informal actors, by placing informal enterprises on a par with formal firms within industrial policy. I propose integration and registration, as opposed to formalisation, and the provision of state support without taxation. The role of the state is also crucial in matchmaking, creating incentives for GVCs to engage with informal actors systematically, and to reduce the transaction costs for informal actors in such engagement. These actions are likely to provide benefits in the longer run, even if they prove costly in the short run.
Journal Article
Dualization or liberalization? Investigating precarious work in eight European countries
A recent upsurge in the incidence of precarious work in Europe necessitates fresh examination of the origins of this trend. On the basis of field research in eight European countries and with reference to theories of liberalization and dualization, the factors that drive precarious work in discrete European labour markets are thus investigated. It is discovered that, while a structural-demographic factor such as non-compliance with labour law is a notable progenitor of precarious work, the deregulatory strategies of public authorities are particularly significant drivers. In conclusion it is asserted that although the theory of dualization helps explain developments in conservative-corporatist countries, in Anglophone and Mediterranean countries liberalization theory is generally more apposite. Central and Eastern European (CEE) countries emerge as a hybrid case.
Journal Article
Out of the shadows: a classification of economies by the size and character of their informal sector
Given that 60 per cent of the global workforce is in the informal sector, this article develops a typology that classifies economies according to, firstly, where different countries sit on a continuum of informalization and, secondly, the character of their informal sectors. This is then applied to the economies of the 27 member states of European Union (EU-27). Finding a clear divide from east to west and south to north in the EU-27, with the more informalized and wage-based informal economies on the eastern/southern side and the less informalized and more own-account informal economies on the western/Nordic side, it is then revealed that formalization and more own-account informal sectors are significantly correlated with wealthier and more equal (as measured by the gini-coefficient) countries in which there is greater labour market intervention, higher levels of social protection and more effective redistribution via social transfers. The article concludes by discussing the implications for theory and practice.
Journal Article
Employee moonlighting: a review and research agenda
PurposeThis paper aims to present a literature review on the emerging field of employee moonlighting, which refers to holding more than one job at a time. It also attempts to integrate the literature on employee moonlighting and present the related research themes.Design/methodology/approachThis is a systematic literature review (SLR) using the basic guidelines of SLR. A search string is designed, and the prominent database is searched. The results are screened based on self-designed inclusion and exclusion criteria. The qualitative analysis of selected 89 research studies uses inductive thematic analysis and proposes a framework.FindingsThe outcome of the present study consists of a conceptual framework, themes and sub-themes related to employee moonlighting, propositions, and the pictorial representation of the overall outcome. The four key themes that emerged are determinants and traits of moonlighting intentions, the impact of moonlighting on employer and employee, policy, and economic implications, respectively.Originality/valueThe study provides insight into the factors that lead to moonlighting intentions and activity. The managers can understand and analyze these factors and can formulate policies to streamline the moonlighting activity with the organizational goals and for the company’s benefit. Academic scholars can adopt some research ideas from the themes and gaps suggested and can work on them in the near future.
Journal Article
Informal Labor and the Efficiency Cost of Social Programs
It is widely believed that the presence of a large informal sector increases the efficiency cost of social programs in developing countries. We evaluate such claims for the case of unemployment insurance (UI) by combining an optimal UI framework with comprehensive data from Brazil. Using quasi-experimental variation in potential UI duration, we find clear evidence for the usual moral hazard problem that UI reduces incentives to return to a formal job. Yet, the associated efficiency cost is lower than it is in the United States, and it is lower in labor markets with higher informality within Brazil. This is because formal reemployment rates are lower to begin with where informality is higher, so that a larger share of workers would draw UI benefits absent any moral hazard. In sum, efficiency concerns may actually become more relevant as an economy formalizes.
Journal Article
Screening of natural compounds that targets glutamate racemase of Mycobacterium tuberculosis reveals the anti-tubercular potential of flavonoids
Tuberculosis (TB) is caused by
Mycobacterium tuberculosis
(MTB), a highly infectious disease accounting for nearly 1.5 million deaths every year and has been a major global concern. Moreover, resistance to anti-TB drugs is an arduous obstacle to effective prevention, TB care and management. Therefore, incessant attempts are being made to identify novel drug targets and newer anti-tubercular drugs to fight with this deadly pathogen. Increasing resistance, adverse effects and costly treatment by conventional therapeutic agents have been inclining the researchers to search for an alternative source of medicine. In this regard natural compounds have been exploited extensively for their therapeutic interventions targeting cellular machinery of MTB. Glutamate racemase (MurI) is an enzyme involved in peptidoglycan (PG) biosynthesis and has become an attractive target due to its moonlighting property. We screened various classes of natural compounds using computational approach for their binding to MTB-MurI. Shortlisted best docked compounds were evaluated for their functional, structural and anti-mycobacterial activity. The results showed that two flavonoids (naringenin and quercetin) exhibited best binding affinity with MTB-MurI and inhibited the racemization activity with induced structural perturbation. In addition, fluorescence and electron microscopy were employed to confirm the membrane and cell wall damages in mycobacterial cells on exposure to flavonoids. Together, these observations could provide impetus for further research in better understanding of anti-tubercular mechanisms of flavonoids and establishing them as lead molecules for TB treatment.
Journal Article
Informal employment and wages in Poland
PurposeThis paper tries to identify the wage gap between informal and formal workers and tests for the two-tier structure of the informal labour market in Poland.Design/methodology/approach The author employs the propensity score matching (PSM) technique and use data from the Polish Labour Force Survey (LFS) for the period 2009–2017 to estimate the wage gap between informal and formal workers, both at the means and along the wage distribution. The author uses two definitions of informal employment: (1) employment without a written agreement and (2) employment while officially registered as unemployed at a labour office. In order to reduce the bias resulting from the non-random selection of individuals into informal employment, he uses a rich set of control variables representing several individual characteristics.FindingsAfter controlling for observed heterogeneity, the author finds that on average informal workers earn less than formal workers, both in terms of monthly earnings and hourly wage. This result is not sensitive to the definition of informal employment used and is stable over the analysed time period (2009–2017). However, the wage penalty to informal employment is substantially higher for individuals at the bottom of the wage distribution, which supports the hypothesis of the two-tier structure of the informal labour market in Poland.Originality/valueThe main contribution of this study is that it identifies the two-tier structure of the informal labour market in Poland: informal workers in the first quartile of the wage distribution and those above the first quartile appear to be in two partially different segments of the labour market.
Journal Article
Informality, regulation and productivity
Compliance with labour laws has costs and benefits which depend on the institutional environment in which firms operate. Although several studies have shown a negative effect of informality on firms’ productivity and growth, it is a fact that firms may resort to undeclared employment to escape excessive tax or regulatory burden. Our analysis documents empirically that stricter labour market regulation drives small firms to informality to gain flexibility in hiring and firing decisions. By exploiting the geographical heterogeneity of labour informality across Italian provinces as well as a different firing cost regime for firms above the 15-employee threshold, we provide evidence that firms facing stricter employment protection regulation adjust less in the formal labour market when the cost of accessing informal employment is lower. As a result, we show that an easier access to the informal labour market (partially) offsets the negative effects of stricter labour market regulation on productivity.
Journal Article