Taxation, credit constraints and the informal economy

Araujo, Julia Passabom; Rodrigues, Mauro

doi:10.1016/j.econ.2016.03.003

Cited by 21 publications

(21 citation statements)

References 21 publications

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“…Preliminary analysis therefore does not seem to support the hypothesis that informal sector enterprises face relatively higher costs of credit. This is in contradiction to the findings of the earlier studies (although conducted for Brazilian enterprises) that the informal sector has limited access to formal credit and faces a relatively higher cost of credit (Araujo & Rodrigues, 2016; de Paula & Scheinkman 2011). The results show that the interest rates for unregistered enterprises are marginally higher than for registered enterprises, and the difference is much larger for informal sources of credit compared to formal sources.…”

Section: Factors That Could Influence Vat Registrationcontrasting

confidence: 99%

“…Access to the formal credit market is often cited as one of the major factors influencing entrepreneurs’ decision to become a formal entity (Araujo & Rodrigues, 2016; de Paula & Scheinkman 2010, 2011). Higher interest rates in informal credit markets and the limited bargaining capacity of informal entrepreneurs in setting the interest rate and terms for repayment could be factors influencing informal entrepreneurs’ decision to continue as informal entities.…”

Section: Factors That Could Influence Vat Registrationmentioning

confidence: 99%

“…There are many studies which build theoretical models to understand the effects of a VAT on informality (Araujo & Rodrigues, 2016; Boadway & Sato, 2009; de Paula & Scheinkman, 2010; Emran & Stiglitz, 2005; Joshi, Prichard, & Heady, 2014; Kanbur & Keen, 2014; Keen & Mintz, 2004; Keen, 2008; Piggott & Whalley, 2001; Tumen, 2017). There is also an emerging body of studies which empirically explore factors influencing the registration for VAT (Hansford, Hasseldine, & Howorth, 2003; Harju, Matikka, & Rauhanen, 2015; Klahr, Joyce, Donaldson, Keilloh, & Salmon, 2017; Webley, Adams, & Elffers, 2002).…”

Section: Introductionmentioning

confidence: 99%

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Value Added Tax and Informality: Determinants of Registration of Enterprises under State VAT in India

Mukherjee¹,

Rao²

2018

Margin: The Journal of Applied Economic Research

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Unincorporated enterprises often bypass formal regulations in general and taxation in particular. Bringing unincorporated enterprises under the taxation system is a challenge often faced by tax administrators, and it is in this regard that the present study explores the factors which influence the decision of unincorporated enterprises to register with the state value added tax (VAT)/sales tax authority across states in India. This analysis is limited to the decision regarding registration. It is not necessary that enterprises that are registered pay taxes and/or file returns—however, the process of registration does provide some information to the tax department for follow ups. The study throws up some interesting results for policymakers and tax administrators. JEL Classification: H25, H32, H26, L53

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Section: Factors That Could Influence Vat Registrationcontrasting

confidence: 99%

Section: Factors That Could Influence Vat Registrationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Value Added Tax and Informality: Determinants of Registration of Enterprises under State VAT in India

Mukherjee¹,

Rao²

2018

Margin: The Journal of Applied Economic Research

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“…Dentro de los ingresos tributarios el ISR y el IVA representan cerca del 90 %; aunque el efecto de estos impuestos sobre el empleo informal es débil; es claro que guardan una relación directa (Schneider y Enste, 2009;Neck, et al, 1989;Loayza, 1996Loayza, , charlot, et al, 2014Araujo y Rodrigues, 2016).…”

Section: Resultados Del Modelo De Regresiónunclassified

“…Cuando los mercados tienen menos regulaciones la informalidad y el desempleo disminuyen; y mientras los impuestos son mayores en el sector formal el tamaño relativo del sector informal aumenta (Charlot, et al, 2014). Aunado a lo anterior, los impuestos laborales disminuyen el salario real de los trabajadores haciendo más atractivo ingresar al sector informal (Araujo y Rodrigues, 2016).…”

Section: Metodologíaunclassified

Política fiscal, mercado de trabajo y empleo informal en México

Luis

Cauich

Dorantes

et al. 2018

REMEF

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ResumenLos cambios en la política económica y el mercado de trabajo pueden influir en la economía informal en México. El artículo tiene como objetivo analizar los efectos de diversas variables macroeconómicas sobre el empleo informal en México. Para determinar estos efectos se diseñó un modelo de ecuaciones simultáneas y se estimó mediante el método de mínimos cuadrados ordinarios en dos etapas. Los resultados indican que el nivel de precios, la producción del sector servicios y el salario mínimo tienen un efecto sobre el empleo informal. Son múltiples los determinantes de la informalidad y es complejo incluirlos en un modelo; sin embargo, el modelo estimado aporta elementos para dirigir la política económica en busca de contrarrestar su crecimiento. Se concluye que un aumento del poder adquisitivo de los salarios formales y la creación de empleos en el sector secundario pueden disminuir el empleo informal. Hasta ahora no se ha estimado un modelo que muestre los factores que afectan el crecimiento del empleo formal e informal. Clasificación JEL: J46, J21, J31, E23. Palabras clave: empleo informal, salario mínimo, Producto Interno Bruto, elasticidad. Fiscal policy, labor market and informal employment in MexicoAbstract Changes in economic policy and the labor market can influence the informal economy in Mexico. The aim of this article is to analyze the effects of a variety of macroeconomic variables on informal employment in Mexico. To determine these effects, a simultaneous equations model was designed and estimated using the two-stage ordinary least squares method. The results indicate that the price levels, production in the service sector, and the minimum wage have an effect on informal employment. There are multiple determinants of informality and it is complex to include them in one model; however, the estimated model provides elements to guide the economic policy in order to counteract its growth. It is concluded that an increase in the purchasing power of formal wages and job creation in the secondary sector may reduce informal employment. Up till now, no model showing the factors affecting growth in formal and informal employment has been estimated. JEL Classification: J46, J21, J31, E23.

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