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The study examines the consequences of the COVID‐19 pandemic‐induced lockdown on the socio‐economic status of 212 female migrant workers employed in the informal sector, originating from four underprivileged districts of West Bengal, India. The study assesses the changes in their scope of employment, financial instability, and the level of violence experienced within households and workplaces in the pre‐pandemic and post‐lockdown phases. We apply the binary logistic regression to identify factors influencing their low employment scope, the t‐test to observe changes in their income as a consequence of the pandemic, and the Wilcoxon signed‐rank test alongside effect size analysis to detect any rise in experiences of violence and exploitation against women. The findings suggest a notable decrease in their employment scope due to the absence of previous jobs, low wages, insecure workplaces, and family constraints; a decline in earnings; and an increased incidence of violence against them. The research suggests designing reforms to improve the current situation of female migrants, who represent one of the most marginalized sections of society. Formalizing the labor market and ensuring proper registration of these women would enable them to gain access to social security benefits, pension schemes, and relief packages that are vital for their well‐being. [ABSTRACT FROM AUTHOR]

The recent prevalence of digital currencies has challenged policymakers as they try to control the supply of money and rein in clandestine activities. Corruption and shadow economy are widely prevalent illegal/unobserved activities that have been hard to eliminate worldwide. These longstanding and entrenched activities have possibly found a new avenue to thrive and evade detection/punishment. So disentangling the nexus between corruption, shadow economy, and digital currencies is important. Using recent cross‐country data, this paper analyzes the interrelationships between corruption, shadow economy, and cryptocurrencies. We argue that a large underground sector in a nation provides a mechanism through which corrupt government officials use cryptocurrencies to conceal their unauthorized earnings. Employing formal mediation analysis, our results show that the positive nexus between corruption and cryptocurrency adoption is mediated by the shadow sector. Quantitatively speaking, three‐fourths of the correlation between corruption and cryptocurrency usage is mediated by the shadow economy. The primary implication of our findings is that effective monitoring of cryptocurrencies should pay attention to policies to control both corruption and the shadow economy. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We use an overlapping generations model to study the challenge in developing countries with a large informal sector and aging population. We use Thailand as a case study and incorporate its labor market structure and its public pension system into the calibrated model. Unlike developed countries, workers in developing countries commonly transit from the formal sector to the informal sector, which can be in the early stage of their working life. This labor market feature crucially limits the coverage of the contributory social security (SS) system. We find that 66% of Thai elderly (aged 60 or over) are ineligible for SS annuity benefits because of an insufficient number of years paying into the SS fund. In addition, we use our model to evaluate two schemes to raise the existing universal basic pension income to the poverty line, namely, uniform benefits and pension‐tested benefits. We find that pension‐testing effectively improves the targeting efficiency, and nontrivially lowers the cost of the basic pension income program. [ABSTRACT FROM AUTHOR]

Reducing carbon emissions is critical to achieving a carbon‐neutral world according to the Glasgow Climate Pact, but production, and thus carbon emissions, must continue to meet the needs of the world's growing population. Minimizing carbon emissions per production, that is, increasing carbon efficiency is one way to support the Sustainable Development Goals. Therefore, studying the determinants of carbon efficiency for China, the largest global polluter, is important for zero carbon goals. To this end, this study examines the effects of the shadow economy, globalization, trade openness and urbanization on carbon efficiency using novel dynamic autoregressive‐distributed lag simulations for China during 1990–2018. The empirical results illustrate that (i) the environmental Kuznets curve (EKC) hypothesis is not valid; (ii) Shadow economy, trade openness and urbanization reduce carbon efficiency and (iii) Globalization enhances carbon efficiency. Based on these results, it is suggested that the Chinese government should combat the shadow economy to increase carbon efficiency, regulate unplanned and polluting urbanization in a green manner, reduce carbon intensity in foreign trade, and benefit from environmental technologies provided by globalization. [ABSTRACT FROM AUTHOR]

This paper examines the impact of a rise in oil prices on the wages of workers in the unorganized sector of a developing economy. The model economy is comprised of two non‐traded transport sectors, formal and informal, along with other sectors. The main results that we obtain are as follows. The informal transport sector contracts when fuel price rises and lowers the real income of the informal workers. The per‐unit return to land rises, and the factor readjustments even raise the output of other sectors in the economy. We also show why inclusion of non‐passenger transport services does not alter the main outcomes of the model. [ABSTRACT FROM AUTHOR]

We extend the theory of optimal redistributive taxation to economies with an informal sector. In particular, in our model, workers can supply labor simultaneously to the formal and the informal sectors, which we call moonlighting. The optimal tax formula contains two novel terms capturing informality responses on an intensive and an extensive margin. Both terms decrease the optimal tax rates. We estimate the model with Colombian data and find that informality strongly reduces tax rates at all income levels. The possibility to migrate to entirely informal employment restricts tax rates at low and medium income levels, while the possibility of moonlighting is relevant at higher earnings. [ABSTRACT FROM AUTHOR]

This study is the first to calculate the size and development of the informal/shadow economies in the agricultural sector for 15 "old" EU countries over 1996–2019. The multiple indicators multiple causes model was used for the estimation of levels and development of informal economies of these countries. The results show higher levels of informal economies in agriculture compared with those in the overall economies. One main contributing factor to this development was a change in the subsidization regime, namely, decoupling Common Agricultural Policy payments from quantities of products produced, introduced in 2003. The effects of taxation, share of imports, and factor income in agriculture are also important for the size of the informal agricultural economy. Finally, we disaggregate the informal work into subcategories, such as self‐employed, family and nonfamily, and household work. The biggest potential for the development of informal economy comes from taxation, regulation, and self‐employment, followed by family work and unreported employment. [EconLit Citations: Q11, Q14, Q19]. [ABSTRACT FROM AUTHOR]

This paper examines convergence among cross‐country shadow economies. Using the Phillips‐Sul (2007, 2009) club convergence approach and data for over 150 countries from 1991 to 2017, the results show evidence against absolute convergence for all shadow economies; however, we find evidence of multiple convergence clubs. In particular, we find evidence for seven distinct convergence clubs and six divergent shadow economies. Each club is characterised by an increasingly larger shadow economy with the countries in club 1 having the largest shadow economy and those in club 7 having the smallest shadow economy. Using a two‐way fixed effects approach, we also find that the determinants of the shadow economy are somewhat conditional on the convergence club. The existence of multiple equilibria suggests that policy makers in their attempt to combat the shadow economy would benefit by considering the different transitional paths associated with the different convergence clubs. [ABSTRACT FROM AUTHOR]

Labour markets in sub‐Saharan Africa are characterized by a gendered division between formal and informal sectors. This article argues that this division originates from a rationality introduced by racist and gendered colonial legal segmentation, produced by a variety of legal regimes in and beyond employment law. Labour market segmentation in postcolonial settings cannot be understood or overcome without analysing the specific colonial institutional origins of the commodification of labour. In sub‐Saharan Africa, the "colonial exploitative legal employment standard" that commodified labour focused on black African male employees for European employers, excluding or marginalizing women and domestic labour relations. [ABSTRACT FROM AUTHOR]

This Special Issue aims to enrich the discussion on individual employment re‐regulation by introducing the concept of legal segmentation from a global perspective and distinguishing between the standard‐setting, privileging and equalizing functions of employment law. This introductory article draws on a new database created by the authors that allows countries worldwide to be clustered into types of legal segmentation. It presents the authors' methodology and initial findings, which are contrasted with the regional and thematic studies in this Special Issue. Together, these contributions provide policy proposals to support the creation and enforcement of inclusive rules protecting all working people worldwide. [ABSTRACT FROM AUTHOR]

This article applies a qualitative approach to the legal segmentation analysis developed by Dingeldey et al. (2021), considering exclusion from, and hierarchies of, worker protection. Examining the cases of China, India, Malaysia and Viet Nam, the author finds that several factors distinguish these countries from those in the global North and produce distinct labour market outcomes, namely: in terms of the relative size of the workforce operating outside the effective coverage of employment regulation; legal terminology that is not readily translated into Western languages; and legal history, especially as regards the mismatch between statutory frameworks and the labour market resulting from colonialism. [ABSTRACT FROM AUTHOR]

This article considers how the regulative functions of labour law have been developed within the Southern African Development Community (SADC) region and seeks to identify instances of legal segmentation. The authors provide an overview of the demographic nature of the informal economies in SADC Member States, drawing the conclusion that the labour law mechanisms employed in the region substantially contribute to the legal segmentation of the regional economies. This has occurred despite the constitutionalization of labour law in the SADC region. [ABSTRACT FROM AUTHOR]

Using rich administrative and household survey data spanning 34 years from 1985 to 2018, we document a series of new facts on earnings inequality and dynamics in a developing country with a large informal sector: Brazil. Since the mid-1990s, both inequality and volatility of earnings have declined significantly in Brazil's formal sector. Higher-order moments of the distribution of earnings changes show cyclical movements in Brazil that are similar to those in developed countries like theUS. Relative to the formal sector, the informal sector is associated with a significant earnings penalty and higher earnings volatility for identical workers. Earnings changes of workers who switch from formal to informal (from informal to formal) employment are relatively negative (positive) and large in magnitude, dispersed, negatively (positively) skewed, and less leptokurtic. Our results suggest that informal employment is an imperfect insurance mechanism. [ABSTRACT FROM AUTHOR]

This paper explores the association between the informal economy and the adoption of central bank digital currency (CBDC) by end users, namely households and businesses. Our findings suggest that CBDC may not be widely accepted by end users in the presence of a sizable informal economy in which cash is the primary method of payment. CBDC can decrease informality, but this effect becomes weaker in countries with larger informal economies. Tax reduction and CBDC interest rates can be useful tools to promote the adoption and effectiveness of CBDC, leading to a reallocation effect between formal and informal sectors. [ABSTRACT FROM AUTHOR]

This paper investigates the effects of immigration and immigration amnesties on the shadow economy. We make use of an array of Italian immigration data and original shadow economy estimates for the years 1996–2006, comprising a panel of local‐level aggregate statistical information, and a microlevel survey of representative households. We find a robust and positive relationship between the presence of immigrants and the unobserved economic activity at the local level. Nevertheless, the impact of immigration on the Italian unofficial economy is relatively small in magnitude. We also exploit the discontinuity created by the implementation of the 2002 immigration amnesty, which increased the stock of documented migrants by almost 50%. According to our results, the Italian 2002 immigration policy only slightly weakens the link between immigration and the extent of the unobserved economic activity. [ABSTRACT FROM AUTHOR]

This study examines the determinants of the shadow economy by employing Bayesian Model Averaging technique, which allows taking into account model uncertainty. Having estimated millions of combinations of models, the study revealed that while higher GDP growth rate, trade openness, and better institutional quality lead to the reduction of the informal sector, higher rate of unemployment, complicated regulations, and the large size of government are associated with a greater size of the shadow economy. Lessening bureaucratic complexity by eliminating burdensome regulations could help to reduce both wasteful spending of government on operating these regulations and the size of the underground economy. [ABSTRACT FROM AUTHOR]

The COVID‐19 pandemic triggered a health, economic and care crisis affecting all workers, including those in the informal economy. This article uses data from the first round of a mixed‐methods longitudinal study conducted in June/July 2020 by Women in Informal Employment: Globalizing and Organizing in partnership with informal workers' organizations in 12 cities. It assesses the impacts of the multidimensional crisis on care responsibilities and the resulting effects on livelihoods and food security. A gendered analysis of paid work and unpaid care work sheds light on the unique features of the impacts of the current "pandemic recession" on the world's informal labour force. [ABSTRACT FROM AUTHOR]

The informal business sector has made enormous contributions to Nigeria's economic growth and development, but this sector is not given the necessary attention to transforming these businesses toward sustainability. This study explores the depth of informal business sector practices in Nigeria. It underscores the inputs of stakeholders in the transformation of businesses in the Nigerian informal sector to increase tax remittances and employment generation for job security in the Nigerian economy. Also, it underpins value chain performances to transform the informal sector and rescue it from liquidation through voluntary company arrangements, administration, merger, takeover, and acquisition schemes. The study adopts a conceptual review. The research relies on extant literature relating to the antecedence of informal business sector activities in Nigeria. It relies on reports from tertiary data sources such as academic articles, books, newspapers, the Internet, and website sources. It further explores the views of researchers, covering the informal sector development and the support of the provisions of the social services in Nigeria. There is the absence of a model for the transformation and sustainability of the informal sector enterprises in Nigeria. This study recommends a model approach to address informal sector enterprises' issues and challenges necessary to transform the businesses into a formal status while supporting their sustainability and resilience. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Colin C. Williams's book I The Informal Economy i (hereafter I IE i ) is a succinct summary of decades of research on socially accepted economic activity at the fringes of the legally sanctioned and protected formal economy. Williams ( I IE i , p. 6) defines the informal economy as 'socially legitimate paid activity that is legal in all respects other than that it is not declared to, hidden from, or unregistered with, the authorities for tax, social security and/or labour law purposes when it should be declared'. The primary claim of the book is that while the net effect of the informal economy is deleterious ( I IE i , p. 13) - in particular, for informal workers who do not benefit from formal labour standards - simply eradicating the informal economy is neither practical nor desirable ( I IE i , pp. 93-5). [Extracted from the article]

This paper examines the absorption of foreign aid in the presence of formal and informal production. Calibrating a two‐sector open economy model to 67 aid‐recipient countries for 1990–2019, we show that an increase in foreign aid drives resources into the informal sector, and away from the formal sector. With untied aid, the expansion of the informal sector can lead to an economic contraction through the Dutch Disease effect. An economic expansion with an increase in the share of formal production can be attained by re‐allocating existing aid to public investment rather than an increase in the aggregate level of aid. [ABSTRACT FROM AUTHOR]

This paper focuses on the role played by migrants in the informal economy in the emblematic tourist sites of a Global North metropolis, paying heed to their interactions with tourists. It investigates the acceptability of the migrants' presence by probing the distance or proximity of tourists to migrant vendors. Our key hypothesis is that these subaltern assert a certain right to the city by mastering interpersonal distances with others and changing the dominant meaning attached to major tourist sites. This research draws on in‐depth fieldwork carried out in four of Paris's most famous attractions: the Eiffel Tower, Notre‐Dame, Montmartre, and the Louvre. It is based on ethnographic observations, 75 interviews in five languages with tourists, and 29 interviews with actors in the informal economy, often street vendors. Analyzing this research material has allowed us to conceptualize a wide range of strategies by which migrants negotiate their place in the city. We highlight three modalities of proxemic relationships between tourists and migrants that shape the multi‐scalar emotional experiences of these sites. These complex (im)possible proximities help us better grasp how a translocal and progressive sense of place is at stake, in the very heart of a global city. Key Messages: The handling of interpersonal distances by migrants is a condition by which they exert their right to the city.The micro‐geographic approach to interpersonal proximity at tourist sites makes it possible to highlight original migrants' ways of being in the city.The acceptability of migrant street vendors in these sites mixes emotions, trade, exoticism, and charity. [ABSTRACT FROM AUTHOR]

Modern slavery is used to describe forms of coercive labor exploitation that affect more than 40 million persons globally. Such practices are difficult to identify given they exist in the informal economy, and involve vulnerable individuals. Addressing modern slavery by organizations requires awareness of its context and complexities. While corporations have increasingly sought to manage modern slavery risk in their supply chains, their understanding of what modern slavery is and what should be managed remains limited. We argue a key problem with firms' efforts to manage modern slavery risk is that it is a psychologically distant concept for them. We apply construal level theory to explore how organizations' psychological distance from modern slavery risk affects their management of risk. We interviewed purchasing executives at 41 global organizations in Australia, Finland, and the U.S and identified four approaches to managing modern slavery risk at different levels of psychological distance. We also identified that conflicts between organizations' approaches to risk and what they identify in their operating environment, precedes important construal shifts that help to improve organizational understanding of labor‐related risk. We highlight ways that organizations' understanding of modern slavery risk plays a role in their governance of such risk in supply chains. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

As Conroy says, supportive policies to promote the informal economy are needed because it is too limited in scale in PNG and the contribution to national output is still too low. In the 1960s and 1970s, development economists in Papua New Guinea (PNG) agreed that there was a "singularity" in the PNG economy - the informal economy was almost non-existent across much of the country. Even so, by the time of PNG Independence in 1975, the urban informal economy in the Gazelle involving the Tolai was still quite small. [Extracted from the article]