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Earnings Inequality and Dynamics in the Presence of Informality

Earnings Inequality and Dynamics in the Presence of Informality
Author: Niklas Engbom
Publisher:
Total Pages: 55
Release: 2021
Genre: Income distribution
ISBN:

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Using rich administrative and household survey data, we document a series of new facts on earnings inequality and dynamics in a developing country with a large informal sector: Brazil. Since the mid-1990s, both inequality and volatility of earnings have declined significantly in Brazil's formal sector. Higher-order moments of the distribution of earnings innovations show cyclical movements in Brazil that are similar to those in developed countries like the US. Earnings mobility is comparatively high, especially at the bottom of the distribution. Compared with those in the formal sector, earnings in the informal sector are more volatile. Workers who switch between sectors experience earnings innovations that have a positive mean and are positively skewed when moving to the formal sector but have a negative mean and are negatively skewed when moving to the informal sector. Since the early 2000s, a secular shift of employment toward the less volatile formal sector has contributed to a decline in the economy-wide volatility of earnings.


The Long Shadow of Informality

The Long Shadow of Informality
Author: Franziska Ohnsorge
Publisher: World Bank Publications
Total Pages: 397
Release: 2022-02-09
Genre: Business & Economics
ISBN: 1464817545

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A large percentage of workers and firms operate in the informal economy, outside the line of sight of governments in emerging market and developing economies. This may hold back the recovery in these economies from the deep recessions caused by the COVID-19 pandemic--unless governments adopt a broad set of policies to address the challenges of widespread informality. This study is the first comprehensive analysis of the extent of informality and its implications for a durable economic recovery and for long-term development. It finds that pervasive informality is associated with significantly weaker economic outcomes--including lower government resources to combat recessions, lower per capita incomes, greater poverty, less financial development, and weaker investment and productivity.


Earnings Inequality

Earnings Inequality
Author: Robert H. Haveman
Publisher: American Enterprise Institute
Total Pages: 68
Release: 1996
Genre: Business & Economics
ISBN: 9780844770765

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Analyses changes in men's earnings from the mid-1970s to 1991.


The Global Informal Workforce

The Global Informal Workforce
Author: International Monetary Fund
Publisher: International Monetary Fund
Total Pages: 414
Release: 2021-07-23
Genre: Business & Economics
ISBN: 1513575910

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The Global Informal Workforce is a fresh look at the informal economy around the world and its impact on the macroeconomy. The book covers interactions between the informal economy, labor and product markets, gender equality, fiscal institutions and outcomes, social protection, and financial inclusion. Informality is a widespread and persistent phenomenon that affects how fast economies can grow, develop, and provide decent economic opportunities for their populations. The COVID-19 pandemic has helped to uncover the vulnerabilities of the informal workforce.


Earnings Inequality and the Informal Economy

Earnings Inequality and the Informal Economy
Author: Gorana Krsti
Publisher:
Total Pages: 0
Release: 2011
Genre:
ISBN:

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We analyse the extent and evolution of informality and inequality in the Serbian labour market between 2002 and 2007, using data from the Living Standard Measurement Surveys. Two surprising results emerge. First, the level of informal employment has risen significantly over the period, despite strong economic growth and the introduction of a range of market-oriented reforms. Secondly, the level of inequality in earnings seems to have remained more or less constant over the period, in contrast to the experience of other countries at a similar stage of transition. We show that informal employees earn significantly less than those in the formal sector, controlling for a range of other variables, and informality plays an increasingly important role in explaining earnings inequality.


Firms and the Decline in Earnings Inequality in Brazil

Firms and the Decline in Earnings Inequality in Brazil
Author: Jorge Alvarez
Publisher: International Monetary Fund
Total Pages: 59
Release: 2017-12-14
Genre: Business & Economics
ISBN: 1484333039

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We document a large decrease in earnings inequality in Brazil between 1996 and 2012. Using administrative linked employer-employee data, we fit high-dimensional worker and firm fixed effects models to understand the sources of this decrease. Firm effects account for 40 percent of the total decrease and worker effects for 29 percent. Changes in observable worker and firm characteristics contributed little to these trends. Instead, the decrease is primarily due to a compression of returns to these characteristics, particularly a declining firm productivity pay premium. Our results shed light on potential drivers of earnings inequality dynamics.


Informality Revisited

Informality Revisited
Author: William Francis Maloney
Publisher: World Bank Publications
Total Pages: 32
Release: 2003
Genre: Informal sector (Economics)
ISBN:

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The author develops a view of the informal sector in developing countries primarily as an unregulated micro-entrepreneurial sector and not as a disadvantaged residual of segmented labor markets. Drawing on recent work from Latin America, he offers alternative explanations for many of the characteristics of the informal sector customarily regarded as evidence of its inferiority.


On Shaky Ground? Income Instability and Economic Insecurity in Europe

On Shaky Ground? Income Instability and Economic Insecurity in Europe
Author: OECD
Publisher: OECD Publishing
Total Pages: 94
Release: 2023-12-12
Genre:
ISBN: 926480532X

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Recognising that individuals’ jobs and circumstances can change multiple times in a year, this report uses novel techniques to identify who is most exposed to income instability in European OECD countries and examines the effects it has on their lives, social mobility, and inequality.


Informality

Informality
Author: Guillermo Perry
Publisher: World Bank Publications
Total Pages: 270
Release: 2007
Genre: Business & Economics
ISBN: 0821370936

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Analyzes informality in Latin America, exploring root causes and reasons for and implications of its growth. This book uses two distinct but complementary lenses. It concludes that reducing informality levels and overcoming the "culture of informality" will require actions to increase aggregate productivity in the economy.