“…Such a policy design might manifest itself as an increase in toleration for at least some informal economic activities or should at least take into account how a reduction 5 See Elgin (2012) for other estimates of informal sector size for the Turkish economy from the existing literature on the Turkish economy. 6 Tansel (1999Tansel ( , 2001, Savasan and Schneider (2006), Taymaz (2009), Tansel and Kan (2012a, 2012b, Acar and Tansel (2014), and Balkan and Tümen (2014) are among the examples. 7 Maloney (1999), Pisani and Pagán (2004), Bucheli and Ceni (2010), Kaplan, Piedra, and Seira (2011), and more recently, Cantekin and Elgin (2017), are among the examples.…”