Search

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 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 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]

In low‐ and middle‐income countries, almost three‐fourths of women in the labour force lack maternity protection. In the Philippines, current laws do not guarantee paid maternity leave to workers in the informal economy. A non‐contributory maternity cash transfer to informal sector workers could be used to promote social equity and economic productivity and could provide health benefits by helping mothers meet their breastfeeding goals. The objective of the study is to provide a realistic cost estimate and to assess the financial feasibility of implementing a publicly financed, non‐contributory maternity cash transfer programme to the informal sector in the Philippines. Using a costing framework developed in Mexico, the study estimated the annual cost of a maternity cash transfer programme. The methodology estimated the unit cost of the programme, the incremental coverage of maternity leave and expected number of enrollees. Different unit and incremental costs assumptions were used to provide a range of scenarios. Administrative costs for running the programme were included in the analysis. The annual financing need of implementing maternity cash transfer programme in the Philippines ranges from a minimum scenario of USD42 million (14‐week maternity cash transfer) to a more ideal scenario of USD309 million (26‐week maternity cash transfer). The latter is financially feasible as it is equivalent to less than 0.1% of the country's gross domestic product substantially lower than the share cost of not breastfeeding (0.7%). The annual cost of the programme is only 10% of the total cost of the largest conditional cash transfer programme. [ABSTRACT FROM AUTHOR]

Under a centrally planned system, China made significant achievements in gender equality. Half a century later, China has joined the ranks of upper‐middle‐income countries, and decades of rapid growth have accompanied major structural changes in the economy. We assess the evolution of women's economic opportunities during the period, focusing on labour force participation, occupational segregation, leadership in business, and the gender wage gap, as well as informal sector employment and migration. We undertake a review of existing research and conduct new empirical analysis using a combination of data sources, including four waves of Chinese population census data through 2010, and province‐level migration data. We focus especially on migrant women, a group typically excluded from similar studies. Although investments in human capital have advanced prospects for better‐paid jobs for women, we find that rapid economic growth has not alleviated discrimination against women rooted in cultural and social norms and that the implementation of existing laws designed to protect and support women needs to improve. [ABSTRACT FROM AUTHOR]

In our paper we try to combine the theories explaining the prevalence of informal work, using a regional approach. Reviewing the literature, we observe that, there is no evidence to confirm that the relationships that occur in cross‐country comparisons remain significant when we use regional data and analyse cross‐regional variations. Our general question is therefore whether there is simply more informal work in less‐developed regions, as the modernization theory asserts. Our analysis concludes that there is limited correlation between the prevalence of informal work and a region's level of development, whereas there is a significant positive autocorrelation between the extent of informal work in the analysed voivodships in Poland. [ABSTRACT FROM AUTHOR]

This study developed and tested an initial tool for the systematic observation of secondary units at the neighbourhood scale by utilizing an inventory checklist method inspired by studies in the fields of health geography and criminology. Single-family dwellings with secondary units were found to have one or more of 18 visual characteristics as outlined in the proposed tool. In the neighbourhoods where the tool was applied it was found that, within the Canadian context, urban neighbourhoods contain a higher proportion and density of secondary units than newer, suburban areas. Indicators that emerged as most prevalent included more than one mailbox per dwelling, unit numbers on single-family dwellings, more than one electric meter, and lawns converted for parking of multiple vehicles. Local and regional variations in housing stock characteristics and local housing markets make the standardization of such a tool problematic. However, this method does present a place-based approach that provides a subtle means of understanding the unique attributes, and distribution, of this type of housing at a scale relevant to municipal planning decisions. [ABSTRACT FROM AUTHOR]

Mapping linkages between the formal and informal sectors is a key area of study in the informal markets literature, particularly in research that focuses on low-income economic actors in the global south. This paper extends that literature both spatially and sociologically by exploring an instance of market informality practiced by middle-class households in the global north, specifically the market in unauthorized secondary suite rentals in Vancouver. Secondary suites (also known as accessory dwelling units) are self-contained apartments typically built by retrofitting the basement, garage, or attic of a house-in some cases without adhering to existing regulations. As in other cities, homeowners in Vancouver often rent out these apartments regardless of the unit's legal status. Through an analysis of more than 30 interviews conducted with homeowner-landlords of unauthorized secondary suites in the city, a mapping of formal-informal linkages in this rental housing submarket is undertaken. This local-level mapping exercise also examines how municipal enforcement policy and federal housing and taxation policy relate to these linkages, highlighting contradictions within and between municipal, provincial, and federal scales of government. [ABSTRACT FROM AUTHOR]

The standard view suggests that removing barriers to entry and improving judicial enforcement reduces informality and boosts investment and growth. However, a general equilibrium approach shows that this conclusion may hold to a lesser extent in countries with a constrained supply of funds because of, for example, a more concentrated banking sector or lower financial openness. When the formal sector grows larger in those countries, more entrepreneurs become creditworthy, but the higher pressure on the credit market limits further capital accumulation. We show empirical evidence consistent with these predictions. ( JEL O16, O43, E26) [ABSTRACT FROM AUTHOR]

Controlling for a more comprehensive set of economic structure variables and using system generalized method of moment ( GMM) dynamic panel estimation, we consider the determinants of seigniorage. While we confirm some results found in previous literature, including an inverse relationship of financial development and exchange rate management to seigniorage, we find little evidence that political instability and polarization lead to greater reliance on seigniorage. We also find robust evidence that the size of the shadow economy and natural resource rents are directly related to seigniorage, the latter result likely a result of exchange rate management. Thus, an effective strategy to reduce reliance on seigniorage is to lower the incentives to operate in the shadow economy, while exchange rate management may be counter-productive in countries with considerable natural resource rents. ( JEL E5, O50) [ABSTRACT FROM AUTHOR]

This study examines whether informal sector jobs are a source of training for young less-educated workers. Controlling for worker and job characteristics, it is found that, in the early years of workers' careers in Mexico, wage growth in the informal sector is higher than in the formal sector. This result is consistent with general human capital investment on-the-job if the informal labor market is more competitive than the formal labor market due to frictions generated by labor regulations. ( JEL O17, J24, J310) [ABSTRACT FROM AUTHOR]

This paper estimates wage curves for formal and informal workers using a rich individual level data for Turkey over the period 2005-2009. The wage curve is an empirical regularity describing a negative relationship between regional unemployment rates and individuals' real wages. While this relationship has been well documented for a number of countries including Turkey, less attention has focused on how this relationship differs for informal versus formal employment. This is of utmost importance for less developed countries where informal employment plays a significant role in the economy. Using the Turkish Household Labour Force Survey observed over 26 NUTS 2 regions, we find that real hourly wages of informal workers in Turkey are more sensitive to variations in regional unemployment rates than wages of formal workers. This is true for all workers as well as for different gender and age groups. [ABSTRACT FROM AUTHOR]

Informality is widespread in most developing countries. In Latin America, 50% of salaried employees work informally. Three stylized facts characterize informality: (1) small firms tend to operate informally while large firms tend to operate formally; (2) unskilled workers tend to be informal while skilled ones have formal jobs; (3) ceteris paribus, secondary workers (a worker other than the household head) are less likely to operate formally than primary workers. We develop a model that accounts for all these facts. In our model, both heterogeneous firms and workers have preferences over the sector they operate and choose optimally whether to function formally or informally. There are two labor markets, one formal and the other informal, and both firms and workers act unconstrained in them. By contrast, a prominent feature of the preexisting literature is that workers' decisions play no role in determining the equilibrium of the economy. In our model, policies that reduce the supply of workers in the informal labor market at given wages will increase the level of formality in the economy. This has noteworthy implications for the design of social programs in developing countries. We also show that an increase in the participation of secondary workers would tend to raise the level of informality in the economy. ( JEL J24, J33) [ABSTRACT FROM AUTHOR]

This article examines the impact of two types of community social capital-ties between civic organizations formed through shared members and ties between residents formed through socializing in local gathering places-on residents' subjective appraisals of community success. Community social capital studies tend to focus on the first of these types of ties, networks of civic engagement, while the second, gathering place networks, has received relatively little scholarly attention. Studying both allows me to assess the formal and informal arenas of community sociability, providing a more thorough understanding of social capital and community life. I assess the effects of community-level social capital networks on the individual-level experience of residing in the community using survey data on 9,962 residents from 99 small towns in Iowa. This rich data set allows me to avoid two shortcomings common in social capital research: I construct genuine network measures of social capital (rather than infer network structure from community attributes) and conduct multi-level analyses (rather than rely on disaggregation). My findings indicate both types of social capital are positively and significantly associated with resident ratings of community success, suggesting community networks-in both the formal and informal sectors-have important consequences for small towns and their residents. [ABSTRACT FROM AUTHOR]

Develops a model of an economy with underground production and trade. Consideration of the influence of the bargaining over trade terms between agents and trading partners in the black economy; Focus of the model on the links between individual underground economic activity movements and earnings capacity; Relationship between taxes and tax enforcement; Debate on the data's effectiveness as interpreters on underground economics.

Examines the role, sources and effects of private protection organizations, also known as rackets, using a survey of 240 small businesses in Russia and Poland. Service other than protection against rival protection organizations; Link between disorganized government regulation and informal economic activity; Protection of renovated shops.

Examines political parties and popular organizations or civic associations as agents of political mobilization among urban informal workers in Nicaragua and Costa Rica during the early 1990s. Informal sector of the economy in the cities; Predictors of political involvement; Conclusions.

This article attempts to explain the underground economy, focusing on state and social structure. It was learned that developments within western capitalism have stimulated considerable interest in the collective, organized aspects of clandestine production, which form the core of the contemporary underground economy. Assumptions that off-the-books employment is extensive and rising throughout the advanced capitalist world, and that this is related either to a crisis of capitalism or to a crisis of the state, was considered. It was argued that the development of a clandestine sector depends on the combined availability of three structural resources such as a dispersed economy, labour market segmentation and a dense system of social networks. It was also argued that the availability of these resources is largely influenced by the historically developed structure and activities of the state, specifically its forms of legal and organizational closure. It was discovered that clandestine work frequently entails a collective, organized endeavour that can involve the mobilization of entire neighborhoods, communities or even industries. According to emerging consensus, such form of underground activity, unmeasured, untaxed and unregulated, is expanding throughout western capitalism.

Focuses on the estimation of the welfare costs of taxes in the U.S. Creation of incentives for resources; Effects of an underground economy on the efficiency of resource use; Various definition of an underground economy.