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This paper assesses the interactive impact of financial development and institutional quality indicators on the informal economy using data from 67 developing countries from 2002-2017. We employ the fixed-effect model with Driscoll-Kraay standard errors that are heteroscedasticity consistent and robust to the general form of cross-sectional and temporal dependence. Findings reveal that financial development and institutions are substitutes for reducing the informal economy. Financial development decreases the size of the informal economy only in the absence of efficient institutions and vice versa. Finally, the study provides several essential policy suggestions for combatting the informal economy., Bu çalışma 67 gelişmekte olan ülkenin 2002-2017 verilerini kullanarak finansal gelişme ve kurumsal kalitenin kayıt dışı ekonomi üzerindeki interaktif etkisini araştırmaktadır. Çalışmada değişen varyans ve yatay kesit bağımlılığını dikkate alan Driscoll ve Kraay Standart Hatalar ile Sabit Etkiler tahmin yönteminden yararlanılmıştır. Bulgular, finansal gelişme ve kurumların, kayıt dışı ekonomiyi azaltmada ikame işlevi gördüğünü ortaya koymaktadır. Kurumsal kalitenin en düşük olduğu ülkelerde finansal gelişmenin kayıt dışı ekonomi üzerinde en fazla etkiye sahip olduğunu göstermektedir. Öte yandan, finansal sektörün daha az gelişmiş olduğu ülkelerde güçlü kurumlar kayıt dışı ekonomi üzerinde daha etkili olmaktadır. Son olarak, çalışma kayıt dışı ekonomiyle mücadele konusunda birkaç temel politika önerisi sunmaktadır.

Kayıt dışı ekonomi ve kayıt dışı istihdam olguları özellikle günümüzde daha fazla konuşulan ve üzerinde tartışılan bir konu olarak ekonomik sistem içerisinde yer almaya başlamıştır. Dördüncü sanayi devrimi ile birlikte gelişen bilişim teknolojileri ve yaşanan salgın hastalıklar (Covid-19, Ebola, Kuş gribi gibi) kuruluşların iş yapma biçimini değiştirmesine sebebiyet vermiştir. Günümüzde, bilgi depolama ve telekomünikasyon sistemleri uzaktan çalışanlar arasında bilgi aktarımını kolaylaştırmıştır. Gelişen teknoloji, insanlara evden çalışma (home office) imkânı verirken, yaşanan salgın hastalıklar evden çalışmayı zorunlu kılmıştır. Ancak evden çalışmanın en önemli özelliği çalışanların görünmez oluşudur. Nitekim evden çalışan kişileri ispat etmek oldukça zordur ve bu şekilde çalışanlar istatistiklerde çoğunlukla ya ev kadını ya da işsiz olarak nitelendirilmektedir. Bu durum ise evden çalışanların kayıt dışı ekonomi zincirinin bir parçası olduğunu göstermektedir.Dolayısıyla bu çalışmada evden çalışma biçimi, kayıt dışı ekonomi ve kayıt dışı istihdam açısından incelenmiş ve bu kapsamda alınması gereken önlemlere yer verilmiştir., Informal economy and informal employment have started to take more place in the economic system, and have been discussed more and more each day. Information technologies advancing with the fourth industrial development and recent outbreaks (COVID-19, Ebola, avian flu, etc.) changed the way institutions do business. Today, information storage and telecommunications systems have facilitated the transfer of information among remote employees. Advancing technology allows people to work from home (home office), while outbreaks have forced them to do so. But the most important aspect of working from home is that the employees have become invisible. As a matter of fact, it is quite difficult to prove those working from home, and this is why, employees are often described in statistics as either homemakers or unemployed. This goes to show that those working from home are a part of the informal economy. Therefore, this study discusses working from home from the perspective of the informal economy and informal employment and covers the measures to be adopted in this context.

Studies on the relationship between the informal economy and economic growth have been inconclusive as to whether the positive or negative relationship dominates. These results are partly due to the type of estimation technique such as fixed-parameter techniques. Fixed parameter techniques have been used to observe the relationship between economic growth and the informal economy. A caveat to the fixed-parameter estimation techniques used to observe the relationship between the informal economy and economic growth is the inability to account for annual disruptions. This paper seeks to examine the relationship between the informal economy and economic growth in Nigeria in the period from 1991 to 2015 using the Time-Varying Parameter (TVP) model. The TVP model is estimated in two stages. First, an Ordinary Least Squares (OLS) multiple regression is estimated and the outcome is subjected to the flexible least-squares approach. The results show the dominance of the negative effects of the informal economy on economic growth. The outcomes also reveal that overtime movements of time-varying parameters in the informal economy and economic growth are connected with economic and political events. This paper recommends the absorption of the informal economy into the official economy through government policy.

When explaining participation in undeclared work, the dominant theorisation views undeclared workers as rational economic actors participating in undeclared work when the benefits exceed the expected costs of being caught and punished. An alternative theorisation views participants’ in the undeclared economy as social actors driven into undeclared work by their lack of vertical trust (in governments) and horizontal trust (in others). To evaluate these perspectives, this paper reports data from 27,565 interviews conducted for a 2019 Eurobarometer survey on undeclared work in 28 European countries. This reveals that raising the expected costs of being caught and punished has no significant impact on the likelihood of conducting undeclared work. However, greater vertical and horizontal trust have a significant impact on preventing participation in undeclared work, and vertical and horizontal trust also moderate the effectiveness of using penalties and detection to deter engagement in undeclared work. The implication for theory is that a social actor perspective is advocated. The result is a call for a policy shift away from the dominant deterrence approach that increases the penalties and risks of detection, and towards a policy approach focused on improving vertical and horizontal trust.

Kayıt dışı ekonomi hem ekonomik hem de sosyal etkileri olan çok yönlü bir olgudur. Kayıt dışı ekonominin işsizlik, gelir dağılımı, yoksulluk ve göç ile ilişkili olması sosyal politika bağlamında bir inceleme yapılmasının önemini ortaya koymaktadır. Bu çalışma da buradan hareketle sosyal politikanın temel uğraş alanı olan konularla kayıt dışı ekonominin ilişkisi üzerinden bir çıkarım yapma amacı gütmektedir. Çalışmada sosyal politikanın temel uğraş alanlarından olan işsizlik, gelir dağılımı-yoksulluk, göç ve kayıt dışı istihdam bağlamında yapılan çeşitli ampirik çalışmalardan yararlanılarak sosyal politikalar yapılırken kayıt dışı ekonominin önemli olup olmadığı tartışılmıştır. Çalışmanın sonucunda ise kayıt dışı ekonominin işsizlik, gelir dağılımı-yoksulluk ve göç ile olan ilişkisinde hem olumlu hem de olumsuz etkilerinin olduğu tespit edilmiş ve sosyal politikalar yapılırken mevcut sosyal sorunun daha da derinleşmemesi adına kayıt dışı ekonominin dikkate alınmasının gerekliliği vurgulanmıştır

1960’lı yıllardan itibaren tüm dünyanın ilgi odağına girmeye başlayan kayıt dışı ekonomi her ülkede farklı biçimde ortaya çıkmakta ve farklı terimlerle adlandırılmaktadır. Tanımlanmasında ve ölçülmesinde zorluklar bulunan kayıt dışı ekonomi ortaya çıkardığı olumsuz etkiler nedeniyle arzu edilmeyen bir durumdur. Bu nedenle kayıt dışı ekonominin nedenlerinin tespit edilmesi kayıt dışılıkla mücadelede büyük önem arz etmektedir. Kayıt dışı ekonominin çok sayıda nedeni olmakla birlikte bu nedenler ülkeler arasında farklılık göstermektedir. Ancak genel kabul görmüş en önemli neden vergi yükünün ağır olmasıdır. Bu nedenle kayıt dışı ekonomi ile mücadelede vergiler, üzerinde durulması gereken bir konu haline gelmektedir. Literatürde kayıt dışılığın vergi ile ilişkisini ele alan çalışmalar olmakla birlikte çalışmaların birçoğu kayıt dışı ekonominin vergi gelirlerinde meydana getirdiği etki üzerinedir. Bu çalışmada ise gelir vergisi kapsamında yer alan ve kayıt dışılığı olumsuz etkileyebilen uygulamalar ele alınmaktadır. Bu doğrultuda çalışma Gelir Vergisi Kanunu’nda yer alan uygulamaların kayıt dışılığı nasıl olumsuz etkilediğini açıklamayı amaçlamaktadır., The informal economy has started to become the center of attention of the whole world since the 1960s. Therefore, the informal economy emerges differently in each country and is called with different terms. Defining and measuring the informal economy is difficult and it is an undesirable situation due to the negative effects it creates. For this reason, determining the causes of the informal economy is of great importance in the fight against informality. There are many reasons for the informal economy. Although these reasons differ between countries, the most widely accepted reason is that the tax burden is heavy. So, taxes become an issue that needs to be emphasized in the fight against the informal economy. Although there are studies in the literature that deal with the relationship between informality and tax, most of the studies are on the effect of the informal economy on tax revenues. In this study, the practices that are within the scope of income tax and that can negatively affect informality are discussed. In this direction, the study aims to explain how practices in the Income Tax Law negatively affect informality.

PurposeThis paper contributes to the literature concerning the Nigerian informal economy (IE) by estimating its size from 1991 to 2017 and identifying the major causes.Design/methodology/approachA structural equation approach in the form of the multiple indicators multiple causes (MIMIC) method is used to estimate the size of the Nigerian IE.FindingsThe results indicate that vulnerable employment and urban population as a percentage of the total population are the main drivers of the IE in Nigeria. The IE in Nigeria ranges from 38.83% to 57.55% of gross domestic product (GDP).Research limitations/implicationsAs a result of the empirical challenges in the estimation of the IE, the estimates of Nigeria's IE are considered to be rough estimates.Originality/valueThe authors calibrated the MIMIC model with the official estimate of the informal sector published by the Nigerian National Bureau of Statistics (NBS). This was an attempt to combine the national accounting approach, to estimate the size of IE, with the MIMIC approach, and to estimate the trend of informality.

This paper explored the determinants of the informal economy size estimations with survey data in the multiple indicators, multiple causes (MIMIC) model. This model enables us to estimate the unknown variable with the known observable variables. The size of the informal economy estimated with observable variables and to conduct the estimation with this model grouped the observable variables of the study as causes and indicators. In the underlying study, the size of informal economy estimations the variables such as harmfulness of shadow economy, growth of money outside banks, taxes burden, the intensity of government regulations, self-employment, unemployment rate, and agricultural sector dominance have the positive effects whereas the real GDP per capita, total employment, institutional quality, and tax morality have negative effects in the estimation of the informal economy size. The study recommended a future line of studies for scholars to undertake the study on the size of the informal economy estimations with the indirect approach using panel data to know the impacts on the regular economy and other related consequences on the economy.

Turkey has a large informal economy and has been hit by severe financial crises causing a devastating impact on its economy. The main objective of this paper is to analyse the impact of financial crises on the informal economy in Turkey. We distinguish between four types of financial crises that make up or aggregate financial crises: internal, external, currency and banking crises. Using vector autoregression (VARX) in the presence of two key variables (the financial crisis and the informal economy), we conduct annual time series analysis from 1980 to 2011 and estimate the response of the informal economy to each type of crisis. To our knowledge, this is the first empirical study to examine the effects of financial crises on the informal economy in the context of the Turkish economy. The results show that each type of crisis produces a significantly positive response to the informal economy. In particular, the findings of this paper show that financial crises tend to have a permanent positive effect on the informal economy, suggesting that the informal economy is an important buffer, which tends to expand in times of crises in Turkey. (JEL E26, G01)

This study is the first to estimate the size of the informal tourism economy. Using a dynamic general equilibrium model, this paper first estimates the size of the informal tourism economy and then assesses its linkages to key labour market variables in Thailand. Empirical results indicate that: (a) the informal tourism economy grows faster than the formal tourism and aggregate economy; (b) both formal and informal tourism economies absorb the unemployed; (c) the relationship between formal and informal economies is negative in the aggregate but positive in the tourism sector.

Este artículo analiza las experiencias colectivas de sectores que sufrieron exclusiones y desigualdades entre 1995 y 2019 en Argentina. El estudio de los modos en que las organizaciones resuelven una serie de dilemas (del agente y del actor) nos permite identificar tres fases: la primera, entre 1995 y 2004, que denominamos fase de los movimientos de desocupados; la segunda, entre 2005 y 2011, que llamamos fase de las organizaciones sociopolíticas; y la tercera, iniciada a partir del 2011, que llamamos fase de la economía popular. Estas muestran cómo a partir de similares sujetos sociales pueden configurarse distintos sujetos políticos, y el modo en que se conformó un nuevo actor en la política argentina. This article analyzes the collective experiences related with sectors that suffered exclusions and inequalities in Argentina from 1995 to 2019. The study of the ways in which organizations resolved a series of dilemmas (of the agent and the actor) allow us to identify three phases. The first one took place from 1995 to 2004); we call it "phase of the unemployed movements". The second one occurred between 2005 and 2011; we call it "phase of socio-political organizations". And from 2011, the third one occurred; we call it "phase of the popular economy". These phases show how similar social subjects can be configured as different political subjects. In addition, they contribute to understand the way in which a new actor was formed in Argentine politics. Fil: Trujillo Salazar, Lucía. Universidad Nacional de La Plata. Facultad de Humanidades y Ciencias de la Educación. Instituto de Investigaciones en Humanidades y Ciencias Sociales (UNLP-CONICET); Argentina. Fil: Toffoli, María Magdalena. Universidad Nacional de La Plata. Facultad de Humanidades y Ciencias de la Educación. Instituto de Investigaciones en Humanidades y Ciencias Sociales (UNLP-CONICET); Argentina. Fil: Retamozo, Martín. Universidad Nacional de La Plata. Facultad de Humanidades y Ciencias de la Educación. Instituto de Investigaciones en Humanidades y Ciencias Sociales (UNLP-CONICET); Argentina.

This study focuses on small-scale entrepreneurship of Syrian refugees in Turkey. It analyses in a Bourdieusian way how they utilize cultural, social, economic and symbolic capital, and reveals their start-up and sustainability strategies. It is based on 24 in-depth interviews with Syrian small entrepreneurs who started up new businesses after 2011, in Istanbul, Gaziantep, and Hatay. It describes the entrepreneurial opportunity structure and the significance of the informal economy and analyses Syrians’ utilization of various forms of capital in small entrepreneurship and relations to integration. The main finding indicates that the informal economy—as the main site of such entrepreneurship—eases the start-up process but limits on-going business and integration.

The article considers main approaches to the study of non-standard labor relations. Based on the conceptual model proposed by C. Rakowski, three approaches to the analysis of non-standard labor relations are presented: structuralist, neo-Marxist, and legalist. The author identifies methodological limitations and heuristic potential of these approaches, and using statistical and sociological data claims that non-standard labor relations are widespread in Russia (from 32 to 59 million people). The article presents different estimates of non-standard labor relations: some authors focus on their advantages, others - on disadvantages depending on the ideological positions and the object of analysis. The author insists on the methodological confusion in the study of non-standard labor relations in the legalist approach which combines informal economy with non-standard employment, making it difficult to consider beneficiaries and ‘victims’ of the emerging system. According to the studies, the benefits of non-standard labor relations are typical for entrepreneurs, while disadvantages - for employees. The author proposes to distinguish employees from non-standard labor relations and entrepreneurs in the informal economy, which allows to combine all concepts of non-standard labor relations and to identify winners and losers of such relations. The article also mentions reasons for the growth of non-standard labor relations: globalization, automatization of labor, changes of labor values, and social policy - under the evolution of capitalism as a historical system.

The underground economy crucially affects growth and unemployment in both developed and developing countries. Nevertheless, this widespread phenomenon does not appear in the basic model for macroeconomic analysis, namely the Aggregate Demand-Aggregate Supply (or simply AD-AS) model. Therefore, this paper introduces–for the first time, to the best of our knowledge–the underground sector of the economy into the popular AD-AS model, with the aim of increasing its descriptive power. Indeed, the present theoretical extension of the AD-AS model shows that the underground economy –despite its negative effects on aggregate demand and growth– can trigger a supply-side positive shock that mitigates, at least in the short run, the problem of high unemployment. Empirical evidence from Italy is also provided.

The main goal of the research will be to determine the size of the informal economy in Peru, Latin America and OCDE countries as well as to estimate the impact of the informal economy on tax revenues and the economic growth. To achieve the goal, the approach is made through MIMIC (multiple-indicator and multiple-cause) model. The main results show that the estimated average size of the informal economy as a percentage of the GDP in Peru is 37.4%, in Latin America is 34%, and in OCDE countries is 19.83%, which represents less than half of the Latin America average. El objetivo principal de la investigación es determinar el tamaño de la economía informal en Perú, América Latina y los países de la OECD, así como estimar el impacto de la economía informal en la recaudación tributaria y el crecimiento económico. Para alcanzar el objetivo, la aproximación se realiza a través de modelos MIMIC. Los resultados principales muestran que el tamaño promedio de la economía informal como porcentaje del PBI en el Perú es 37.4%, en los países de América Latina es de 34%, y de 19.83% para los países de la OECD; es decir, un poco menos de la mitad del promedio de América Latina.

Informal employment is one of the labour markets’ modern trends in the developed and developing countries. The author performs a review of informal economic activity researches. In particular, the concept of dual economy and its transformation are considered. The author pays attention to the K. Hart’s consepton that changed the prevalent opposition “modern-traditional” sectors of the economy to “formal-informal”. Due to Hart’s researches the informal sector was called the main source of the Third World countries’ development by ILO. Hart himself defining the essence of the informal sector based on Weber’s theory of modernization. According to it, genesis of capitalism demands development of a production and management rational organization. So informality is associated with a special degree of organization, not with a production scale or its productivity. The industrial society is characterized by formal or standard employment. In the postindustrial period other forms of employment appear under the influence of new informational technologies. The informal employment became normal and immanently inherent in the modern society. But typical doesn’t always mean positive. The wide spread of informality is the main challenge to the sustainable development of the modern countries. An informal employment growth on the national labour market is one of the main problems. The negative consequences of the informal employment practice are: on the one hand, violation of labour rights, and, on the other hand — underinvestment of the state budget. As far as a Russians’ subjective opinion on the informal status of employment is concerned, the researches didn’t find any real correlation between being informal employed and self-esteem. The difference between the formal and informal employment for a Russian employees isn’t considerable. The employed Russian population feels equal uncomfortable in the formal and informal sectors. The phenomenon indicates low quality of the formal sector’s institutions.

We provide evidence, based on a large sample of countries, on the effects of financial crises on key labor market indicators, including official and unofficial employment, unemployment and the participation rate. Crises are followed by a drop in the official market participation rate and by an increase in informal employment. These responses are strongly persistent. Empirical results are then interpreted with a DSGE model which accounts for informality and for financial and labor market frictions. In this framework the informal sector acts as a buffer which absorbs workers in bad times and vice versa. Our simulations suggest the informal sector also is a crisis amplifier for the official economy. For a given financial shock, the ensuing contraction in the official economy is deeper and more persistent the larger the initial size of the unofficial sector. This implies that in less developed economies financial crises cause a relatively stronger reallocation of inputs towards less efficient sectors, expose a larger fraction of the population to the adverse effects of informality, cause a sharper deterioration of public finances limiting governments ability to supply public goods and to engage in countercyclical fiscal policies.