Informal Employment and Family Support: An Evolutionary Analysis
The model presents the dynamics and the equilibrium of an overlapping generation economy when there is informal employment, a pension system and altruistic agents. The model inspires from stylised facts on developping and Euro-Mediteranean countries where family plays a central role in risk insurance. The rational is emphasised by lower costs compared to private and public insurance systems. Given an initial distribution of the informally employed individuals, the model captures the e¤ects of social security decisions and anticipated bequests on the preference of the agents for formal or informal employment. The impact of scal policies on the distribution of employment to formal and informal categories is analysed through the political competition. We show that opportunist behaviour would amplify the relative size of the informal employment.
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| Length: | 25 pages |
| Date of creation: | 01 Apr 2011 |
| Date of revision: | 01 Apr 2011 |
| Handle: | RePEc:ris:giamwp:2011_004 |
| Contact details of provider: | Postal: Ciragan Caddesi No: 36. 34357 Besiktas Istanbul Phone: +90 212 227 44 80 Fax: +90 212 258 22 83 Web page: http://www.giam.gsu.edu.tr More information through EDIRC
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References listed on IDEAS
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.:
- Juan Ramón de Laiglesia, 2008. "Living with Duality: Fiscal Policy and Informality in Latin America," OECD Development Centre Policy Insights 81, OECD Publishing.
- Johannes P. Jütting & Jante Parlevliet & Theodora Xenogiani, 2008. "Informal Employment Re-loaded," OECD Development Centre Working Papers 266, OECD Publishing.
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