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on Informal and Underground Economics |
| By: | Ceyhun Elgin; Friedrich Schneider |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:bou:wpaper:2013/13&r=iue |
| By: | Katharina Gangl; Benno Torgler; Erich Kirchler; Eva Hofmann |
| Abstract: | The tax compliance literature has mainly focused on individual tax evasion rather than firm tax evasion. In general, there is a lack of field experiments on the topic, and measuring tax compliance is challenging. To address this shortcoming in the literature, we conduct a field experiment on firm tax compliance looking at newly founded firms. As a novelty we explore how firms react to closer supervision by the tax administration, looking at timely paying which has no measurement biases. Interestingly, we observe a crowding-out effect of supervision on timely paying of taxes. On the other hand, for those who were non-compliant, supervision reduced the tax amount that was due. |
| Keywords: | tax compliance; tax evasion; field experiment; deterrence; tax enforcement; supervision |
| JEL: | H26 C93 K42 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:cra:wpaper:2013-15&r=iue |
| By: | Elda Luciana Pardede (Demographic Institute, FEUI); Rachmanina Listya (Demographic Institute, FEUI) |
| Abstract: | Characteristics of informal activity that are highly flexible in terms of working hours, barrier to entry, mobility, capital and skills requirement, have made informal jobs attractive for migrant workers in developing countries. Informal jobs are also theoretically claimed as a temporary position or transition for migrants who seek to work in more certain, formal jobs. Using individual’s jobs and migration history of adults obtained from the 2007 IFLS data from 2000--2007, this study aims to analyse how migration affects individual’s tendency to work in informal jobs by measuring the immediate effect of migration on the job's status. The result of clustered multinomial logit regression shows that individuals who migrate are less likely to work in informal job relative to formal job compared with individuals who do not migrate. This result contradicts the notion that migration is an act to look for opportunities with high uncertainty because migrants seem more likely to engage in formal jobs compared to non migrants. It may show that temporary positions into the formal jobs are not what the adult migrants in Indonesia are looking for. |
| Keywords: | Migration, Informal Sector, Employment, Indonesia |
| JEL: | J60 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:lpe:wpecbs:201308&r=iue |
| By: | Brixiova, Zuzana (African Development Bank); Ncube, Mthuli (African Development Bank) |
| Abstract: | Since mid-2000s, Ethiopia has been one of the fastest growing countries in the world. However, productive entrepreneurship in high-value added activities has made limited contributions to this growth, in part because of a weak business environment. Moreover, the low-productive firms in the informal sector still account for a large share of employment. Reflecting these facts, this paper presents a model of costly entrepreneurial start-ups in an economy with a large informal sector and rigid business environment where an equilibrium outcome can be a low-skill, low-productivity trap. By fostering productive start-ups and skilled employment, creation of an enabling business environment could help move the Ethiopian economy into high-productivity equilibrium. |
| Keywords: | entrepreneurship, SME start-ups, low productivity trap, multiple equilibria, Africa |
| JEL: | L26 J24 J48 O17 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7553&r=iue |