Government Effectiveness and Regional Variation in Informal Employment
AbstractThis paper analyses the role of government effectiveness in the determination of informal employment. A theoretical model is developed, in which local governance and worker skill level are assumed to influence the decision of the worker whether to seek employment in the formal or informal sector. The model is assessed empirically using data from Brazil, where almost half of the urban labour force is employed informally. The empirical analysis supports the predictions of the model and suggests that informal employment is lower in regions with better governance and higher average education.
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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2010:13.
Length: 18 pages
Date of creation: 26 Oct 2010
Date of revision: 31 Mar 2011
Publication status: Forthcoming as Jonasson, Erik, 'Government Effectiveness and Regional Variation in Informal Employment' in Journal of Development Studies.
Contact details of provider:
Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
More information through EDIRC
informal employment; government effectiveness; Latin America; Brazil;
Other versions of this item:
- Erik Jonasson, 2012. "Government Effectiveness and Regional Variation in Informal Employment," Journal of Development Studies, Taylor & Francis Journals, vol. 48(4), pages 481-497, June.
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-11-13 (All new papers)
- NEP-LAB-2010-11-13 (Labour Economics)
- NEP-SOC-2010-11-13 (Social Norms & Social Capital)
- NEP-URE-2010-11-13 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Johannes P. Jütting & Jante Parlevliet & Theodora Xenogiani, 2008. "Informal Employment Re-loaded," OECD Development Centre Working Papers 266, OECD Publishing.
- Amuedo-Dorantes, Catalina, 2004. "Determinants and Poverty Implications of Informal Sector Work in Chile," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 347-68, January.
- Hazans, Mihails, 2011.
"Informal workers across Europe : evidence from 30 European countries,"
Policy Research Working Paper Series
5912, The World Bank.
- Hazans, Mihails, 2011. "Informal Workers across Europe: Evidence from 30 Countries," IZA Discussion Papers 5871, Institute for the Study of Labor (IZA).
- Basu, Arnab K. & Chau, Nancy & Siddique, Zahra, 2011. "Tax Evasion, Minimum Wage Non-Compliance and Informality," IZA Discussion Papers 6228, Institute for the Study of Labor (IZA).
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