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In From the Shadow : Integrating Europe's Informal Labor

Author

Listed:
  • Johannes Koettl
  • Truman Packard
  • Claudio E. Montenegro

Abstract

This book is about Magda and Jacek and millions of others like them, who earn a living working full- or part-time in Europe's untaxed markets for goods, services, and labor. Magda was certified as a hairdresser years ago, and she's very proud of the salon apprenticeship she did shortly after. She learned a lot and made good friends but was never fully comfortable working for somebody else. Jacek's clients pay him in cash, and he pays his men in cash as well. He sometimes needs to show a license to get the trade price on parts and materials. But he can keep it up-to-date by declaring only part of what he actually earns to the tax office. This book ventures a general conclusion about what policy makers can do to bring more economic activity in from the shadow: Although it may be necessary to improve the structural incentives created by taxation, social protection policies, and labor market regulation, doing so is not sufficient for substantive improvement to be achieved. To back up this general conclusion, the book presents a large body of evidence indicating that much more than the fairly mechanical incentive structures of taxation, social policy, and labor market regulation is at work in shaping the circumstances that lead people into the shadowy unregulated and untaxed markets for goods, services, and labor.

Suggested Citation

  • Johannes Koettl & Truman Packard & Claudio E. Montenegro, 2012. "In From the Shadow : Integrating Europe's Informal Labor," World Bank Publications, The World Bank, number 9377.
  • Handle: RePEc:wbk:wbpubs:9377
    as

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    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/9377/706020PUB0EPI0067902B09780821395493.pdf?sequence=1
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Giuseppina Gianfreda & Giovanna Vallanti, 2017. "Informality and productivity: do firms escape EPL through shadow employment? Evidence from a regression discontinuity design," Working Papers 2017-01, Universita' di Cassino, Dipartimento di Economia e Giurisprudenza.
    2. Colin C. Williams, 2014. "Confronting the Shadow Economy," Books, Edward Elgar Publishing, number 15370, April.
    3. Giuseppina Gianfreda & Giovanna Vallanti, 2017. "Informality and productivity: do firms escape EPL through shadow employment? Evidence from a regression discontinuity design," Working Papers LuissLab 17135, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    4. Edoardo Di Porto & Leandro Elia & Cristina Tealdi, 2013. "The "emersion" effect: an ex post and ex ante social program evaluation on labor tax evasion in Italy," Working Papers 2/2013, IMT Institute for Advanced Studies Lucca, revised Jun 2013.
    5. Gimpelson, Vladimir & Kapeliushnikov, Rostislav, 2014. "Between Light and Shadow: Informality in the Russian Labour Market," IZA Discussion Papers 8279, Institute for the Study of Labor (IZA).
    6. Schmillen,Achim Daniel & Packard,Truman G., 2016. "Vietnam's labor market institutions, regulations, and interventions : helping people grasp work opportunities in a risky world," Policy Research Working Paper Series 7587, The World Bank.
    7. Bertranou, Fabio & Casanova, Luis, 2015. "Employment Formalization in Argentina: Recurring and New Challenges for Public Policies," MPRA Paper 68121, University Library of Munich, Germany.
    8. repec:oup:oxecpp:v:69:y:2017:i:1:p:143-164. is not listed on IDEAS
    9. Fabián Slonimczyk & Vladimir Gimpelson, 2015. "Informality and mobility," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 23(2), pages 299-341, April.
    10. Indermit Gill & Johannes Koettl & Truman Packard, 2013. "Full employment: a distant dream for Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-34, December.
    11. Slonimczyk, Fabian & Gimpelson, Vladimir, 2013. "Informality and Mobility: Evidence from Russian Panel Data," IZA Discussion Papers 7703, Institute for the Study of Labor (IZA).
    12. Di Nola, Alessandro & Kocharkov, Georgi & Vasilev, Aleksandar, 2016. "Productivity, Taxation and Evasion: A Quantitative Exploration of the Determinants of the Informal Economy," EconStor Preprints 144164, ZBW - German National Library of Economics.
    13. Agata Kubiczek, 2014. "Shadow economy as an example of unfair competition," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 13(3), pages 449-463, September.

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