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On Defining and Measuring the Informal Sector: Evidence from Brazil

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  • Henley, Andrew
  • Arabsheibani, G. Reza
  • Carneiro, Francisco G.

Abstract

Summary Recent debate on the reasons for the informal sector has led to renewed focus on how to operationalize the measurement of informal employment. This paper investigates congruence between three empirical measures of the rate of informality using Brazilian household survey data for the period 1992-2004. Sixty-three percent of the economically active are informal according to at least one definition, but only 40% are informal according to all three. Regression analysis is used to shed further light on differences in these measures. Appropriate measurement is therefore of high significance to policy analysis and design of appropriate strategies to reduce informality.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 37 (2009)
Issue (Month): 5 (May)
Pages: 992-1003

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Handle: RePEc:eee:wdevel:v:37:y:2009:i:5:p:992-1003

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: informal employment social protection entrepreneurship;

References

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Citations

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Cited by:
  1. de Vries, Gaaitzen J. & Erumban, Abdul A. & Timmer, Marcel P. & Voskoboynikov, Ilya & Wu, Harry X., 2012. "Deconstructing the BRICs: Structural transformation and aggregate productivity growth," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 211-227.
  2. Cravo, Túlio A., 2011. "Are small employers more cyclically sensitive? Evidence from Brazil," Journal of Macroeconomics, Elsevier, vol. 33(4), pages 754-769.
  3. Bosch, Mariano & Goñi-Pacchioni, Edwin & Maloney, William, 2012. "Trade liberalization, labor reforms and formal–informal employment dynamics," Labour Economics, Elsevier, vol. 19(5), pages 653-667.
  4. Aysýt Tansel & Elif Öznur Kan, 2012. "The Formal/Informal Employment Earnings GAP: Evidence From Turkey," Working Papers 2012/23, Turkish Economic Association.
  5. Jean-Pierre Lachaud, 2010. "Dynamique des profits des micro-entreprises urbaines et genre à Madagascar. Une approche de régressions quantiles," Working Papers hal-00616788, HAL.
  6. Laura Hering, 2014. "Does Access to Foreign Markets shape Internal Migration? Evidence from Brazil," Tinbergen Institute Discussion Papers 14-084/VI, Tinbergen Institute.
  7. Erik Jonasson, 2011. "Informal Employment and the Role of Regional Governance," Review of Development Economics, Wiley Blackwell, vol. 15(3), pages 429-441, 08.
  8. Azzoni, Carlos Roberto & Guilhoto, Joaquim José Martins, 2010. "Tertiary activities and informality: quantitative importance and interconnections within the economy in Brazil," MPRA Paper 30692, University Library of Munich, Germany.
  9. Webb, Justin W. & Bruton, Garry D. & Tihanyi, Laszlo & Ireland, R. Duane, 2013. "Research on entrepreneurship in the informal economy: Framing a research agenda," Journal of Business Venturing, Elsevier, vol. 28(5), pages 598-614.
  10. Arabsheibani, Reza & Staneva, Anita V., 2012. "Is There an Informal Employment Wage Premium? Evidence from Tajikistan," IZA Discussion Papers 6727, Institute for the Study of Labor (IZA).
  11. Gustavo Adolfo García, 2010. "Evolución de la informalidad laboral en Colombia: determinantes macro y efectos locales," ARCHIVOS DE ECONOMÍA 006449, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
  12. Cho, Yoonyoung, 2011. "Informality and protection from health shocks : lessons from Yemen," Policy Research Working Paper Series 5746, The World Bank.
  13. T√∫lio Cravo, 2011. "Are Small Firms more cyclically Sensitive than Large Ones? National, Regional and Sectoral Evidence from Brazil," ERSA conference papers ersa10p507, European Regional Science Association.

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