Informality, Inequality, and ICT in Transition Economies

Dell’Anno, Roberto; Solomon, Helen

doi:10.1080/001287755.2014.1004264

Cited by 23 publications

(12 citation statements)

References 26 publications

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“…In this case, informality played an increasingly important role in explaining earnings inequality in 2007, but not in 2002 [9]. Indefinite results on the relationship between informality and inequality were also found in panel regressions for 16 transition countries [10]. This research concluded that the statistical significance of the correlation between informality and inequality depended on the estimation method and the time period considered to estimate informality.…”

Section: What Does the Empirical Literature Find?mentioning

confidence: 76%

“…Some scholars attempt to rationalize the statistically insignificant correlations for transition countries (e.g. [3], [9], [10]) by hypothesizing a non-linear (concave upwards) relationship between inequality and informality due to credit market imperfections and entry costs [2]. The economic intuition is that, on the one hand, in the presence of credit market imperfections and significant entry costs of starting a formal business activity, high inequality generates higher demand for loans.…”

Section: What Does the Empirical Literature Find?mentioning

confidence: 99%

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Inequality and informality in transition and emerging countries

Dell’Anno¹

2021

izawol

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Section: What Does the Empirical Literature Find?mentioning

confidence: 76%

Section: What Does the Empirical Literature Find?mentioning

confidence: 99%

Inequality and informality in transition and emerging countries

Dell’Anno¹

2021

izawol

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“…In this case, it was found that informality played an increasingly important role in explaining earnings inequality in 2007, but not in 2002 [11]. Indefinite results on the relationship between informality and inequality were also found in separate panel regressions for 16 transition countries [12]. This research concluded that statistical significance and the correlation between informality and inequality depend on the estimation method and the time period considered when determining informality.…”

Section: What Does the Empirical Literature Find?mentioning

confidence: 71%

“…This research may indirectly explain the statistically insignificant correlations for transition countries [5], [11], [12]. The economic intuition is that, on the one hand, in the presence of credit market imperfections and significant entry costs of starting formal business activity, high inequality generates a higher demand for loans.…”

Section: Macroeconometric Methods Are Usually Placed Into Three Groupsmentioning

confidence: 99%

Inequality and informality in transition and emerging countries

Dell’Anno¹

2016

izawol

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“…As Hokamp and Seibold [78] stated, increasing trust in public institutions will also increase tax compliance. Dell'Anno and Solomon [79] stressed that the relationship between the shadow economy and income inequality depends on the quality of institutions. Kucera and Roncolato [80] mentioned that "strong labor market regulations can be viewed as a determinant of informal employment" (p. 321).…”

Section: Causementioning

confidence: 99%

Researching the Main Causes of the Romanian Shadow Economy at the Micro and Macro Levels: Implications for Sustainable Development

2018

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The Sustainable Development Goals (SDGs) that were established by the United Nations for the year 2030 are considered the blueprint for reaching a sustainable future through addressing poverty eradication, education, social protection, environmental protection, climate change, health, job opportunities, and strong institutions. Until now, sustainable development has focused mainly on the formal sector, somehow neglecting the potential contributions of the informal sector to sustainable futures. In this context, the paper aims to analyze the main causes of the Romanian shadow economy (SE) both at the micro and macro levels, and how they can make a considerable impact on achieving a more sustainable future. The main purpose of the paper is to highlight the relevance of knowing the main determinants of this phenomenon, emphasizing that keeping the incidence of the shadow economy and its causes under control could offer an alternative in the process of achieving sustainable development. In order to do that, we use an improved MIMIC (Multiple Causes Multiple Indicators) specification of the causal variables that is grounded in an evidence-based approach through using the points of view of the Romanian entrepreneurs. Their opinions are based on a national representative survey that is based on quarterly data covering the period 2000–2017. The empirical analysis pointed out the roles of tax avoidance, bribery, a lack of trust in public officials, the poor quality of business legislation, the poor government support for entrepreneurs, high social contributions, a relatively high of corruption, high tax rates, and uncertainty about regulation policies in increasing incidences of shadow economic activity. The macroeconomic results that were revealed to be the main causes for the Romanian SE were self-employment, unemployment, part-time employment, and the lack of trust in public institutions. Therefore, policymakers need to focus on building reliable and transparent institutions with a lower level of corruption, regulations, and bureaucracy, regaining people’ confidence in public institutions, and elaborating effective strategies for tackling the undeclared activities that will contribute to the achievement of sustainable development desideratum by the fulfillment of two main SDGs. These are Goal 8: Decent work and economic growth, and Goal 16: Peace, justice, and strong institutions.

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Informality, Inequality, and ICT in Transition Economies

Cited by 23 publications

References 26 publications

Inequality and informality in transition and emerging countries

Inequality and informality in transition and emerging countries

Inequality and informality in transition and emerging countries

Researching the Main Causes of the Romanian Shadow Economy at the Micro and Macro Levels: Implications for Sustainable Development

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