Outside Options, Coercion, and Wages: Removing the Sugar Coating

2020 ◽  
Vol 130 (630) ◽  
pp. 1678-1714
Author(s):  
Christian Dippel ◽  
Avner Greif ◽  
Daniel Trefler

Abstract In economies with a large informal sector firms can increase profits by reducing workers’ outside options in that informal sector. We formalise this idea in a simple model of an agricultural economy with plantation owners who lobby the government to enact coercive policies—e.g., the eviction and incarceration of squatting smallhold farmers—that reduce the value to working outside the formal sector. Using unique data for 14 British West Indies ‘sugar islands’ from 1838 (the year of slave emancipation) until 1913, we examine the impact of plantation owners’ power on wages and coercion-related incarceration. To gain identification, we utilise exogenous variation in the strength of the plantation system in the different islands over time. Where planter power declined we see that incarceration rates dropped, and agricultural wages rose, accompanied by a decline in formal agricultural employment.

Itinerario ◽  
2021 ◽  
Vol 45 (1) ◽  
pp. 174-187
Author(s):  
Rosa de Jong

AbstractThe authors of three recent monographs, The Escape Line, Escape from Vichy, and Nearly the New World, highlight in particular the relevance of transnational refugee and resistance networks. These books shed new light on the trajectories of refugees through war-torn Europe and their routes out of it. Megan Koreman displays in The Escape Line the relevance of researching one line of resistance functioning in several countries and thereby shifts from the common nationalistic approach in resistance research. In Escape from Vichy Eric Jennings researches the government-endorsed flight route between Marseille and Martinique and explores the lasting impact of encounters between refugees and Caribbean Negritude thinkers. Joanna Newman explores the mainly Jewish refugees who found shelter in the British West Indies, with a focus on the role of aid organisations in this flight.


2017 ◽  
Vol 3 (3) ◽  
pp. 405 ◽  
Author(s):  
Mohammed Yelwa ◽  
A. J. Adam

<p><em>The paper examines the impact of informal sector activities on economic growth in Nigeria between 1980-2014. The contributions of informal sector activities to the growth of Nigerian economy cannot be over emphasized. It is the source of livelihood to the majority of poor, unskilled, socially marginalized and female population and is the vital means of survival for the people in the country lacking proper safety nets and unemployment insurance especially those lacking skills from formal sector jobs. The relationship between informality and economic growth is not clear because the sector is not regulated by the law also there is no concrete evidence that this sector enhances growth because the sector’s contributions to growth is not measured. The use of endogenous growth model becomes relevant in this study. The theory emphasizes the role of production on the long-run via a higher rate of technological innovation. The variables that were tested are official economy nominal GDP, informal economy nominal GDP, currency in circulation, demand deposit, ratio of currency in circulation to demand deposit, narrow money, informal economy as percentage of official economy. ADF test was conducted to establish that the data series of all variables are stationary t levels. Having established the stationarity test we also, conducted causality test of the response of official economy nominal GDP to informal economy nominal GDP. In conclusion, the impact of informal sector economy on economic growth in Nigeria is quiet commendable. Even though, the relationship between informality and economic growth is not straight. The paper recommended thus, the need for the government to integrate the activities of the informal economy into formal sector and size of the sector is measured and regulated because their roles are commendable. As it will improve tax collection and enhance fiscal policy.</em></p>


2009 ◽  
Vol 1 (1) ◽  
pp. 1-27 ◽  
Author(s):  
Robin Boadway ◽  
Motohiro Sato

An optimal commodity tax approach is taken to compare trade taxes and VATs when some commodities are produced informally. Trade taxes apply to all imports and exports, including intermediate goods, while the VAT applies only to sales by the formal sector and imports. The VAT achieves production efficiency within the formal sector, but, unlike trade taxes, cannot indirectly tax profits. Making the size of the informal sector endogenous in each regime is potentially decisive. The ability of the government to change the size of the informal sector through costly enforcement may also tip the balance in favor of the VAT. (JEL E26, H21, H25)


Author(s):  
Yuli Apriati ◽  
Cucu Widaty ◽  
Syahlan Mattiro ◽  
Rahmat Nur

This research describes the increase in the informal sector during the Covid-19 pandemic in Sungai Andai Village, North Banjarmasin District, Banjarmasin City. The purpose of this research is to describe the changes regarding the increase in the informal sector during the Covid-19 pandemic in Sungai Andai Village, North Banjarmasin District, Banjarmasin City. The research method used in this research is to use qualitative research method. The research subjects in this study were the community of traders around the red light of Sungai Andai Village, North Banjarmasin District, Banjarmasin City, which was considered sufficiently supportive for the research focus.  To test the validity of the data, interviews were conducted with informants.  The results of the study show that the livelihoods of a number of people selling around the river road have changed due to the Covid-19 outbreak. People's income tends to decline when compared to income before the Covid-19 pandemic era. This is influenced by the decline in people's income, limited abilities and skills, narrow job opportunities in the formal sector, and the impact of layoffs. Based on the results of this study, it can be suggested for the community, especially traders, as informal sector actors to adapt to the social, economic, and cultural conditions that existed during the Covid-19 period.


Author(s):  
Bismark Mutizwa

COVID-19 has disrupted the business sector globally, ushering developed and developing economies into an unprecedented recession beyond anything experienced in nearly a century. Governments across the globe have adopted a myriad of preventive measures. These remedial actions vary from one country to the other. Nonetheless, in Zimbabwe the government gave a blind eye on the informal sector as evidenced by the adopted preventive measures which neglected the plight of informal traders. To this end, this research interrogates the shadow pandemic in the Zimbabwean informal sector using Chiredzi District as an illustrative case study. Documentary review and key informed interviews were at the core of research methodology. The study found out that informal economy businesses are excluded from government grants, closure of businesses, failure to pay rentals, disruption of the supply chain, psychological impact and family dysfunctional are the quandaries causing a shadow pandemic. Inclusion of informal economy businesses in policies and government grants, government should negotiate with landlords, informal traders should be allowed to operate and inclusive social nets are the possible remedial actions that the government can adopted.


2021 ◽  
Author(s):  
Juwon Adebiyi ◽  
Adebola Bada ◽  
Daniel Maduagwu ◽  
Emem Udoh

Abstract The regulation of Occupational Safety and Health (OSH) in Nigeria, which is currently seeing some progress in the formal sector, has been short of impressive in the informal sector of the economy. Con- sidering it is the role of every government to ensure that all sectors of the economy operate in a manner that guarantees and ensures the safety and well-being of its citizens, Article 4 of International Labour Organization (ILO) Convention No. 155- Occupational Safety and Health Convention was ratified by the Government of the Federal Republic of Nigeria (FRN) in 1994, which led to the development of a coherent National Policy on Occupational Safety and Health in 2006. This, inter alia, failed to address the informal sector; hence the Revised National Policy on OSH 2020 was introduced by the Govern- ment, through the office of the Honorable Minister of the Federal Ministry of Labour and Employment, as a framework for bridging the existing gap. In a bid to ensure the success of the Policy document, the Department of Occupational Safety and Health of the Federal Ministry of Labour and Employment was designated the Competent Authority by the Government. This paper takes a look at the stakeholders in the informal sector of the economy, focusing on the south- south part of Nigeria, and identifies some of the challenges hampering the effective implementation of Occupational Safety and Health systems needed for the promotion of safety and health at workplaces. It concludes by providing a practical tool that can be a guide for the policy users, especially in the in- formal sector of the Nigerian economy, in alignment with the second of the three determinants of the future of energy, as captured in the theme for NAICE 2021: "The Future of energy – a trilogy of de- terminants; Climate Change, Public Health, and the Global Oil Market".


2020 ◽  
Vol 1 (1) ◽  
pp. 7-14
Author(s):  
Aldilla Adam Kurniawan

COVID-19 has had a considerable impact on social and cultural problems that exist in society, especially those related to economic problems. Since the emergence of this pandemic, many companies and corporations have finally granted employment termination, this has also been done by companies to support government policies in the form of Large-Scale Social Restrictions (PSBB) to reduce the spread of the virus. Another problem of concern is that poverty and unemployment could increase quite drastically. Because companies and corporations alone are not only one or two in Indonesia. From the above background, the purpose of this study is to find out the impact of COVID-19 on the country's economy, as well as to find out programs for community empowerment as a solution to overcoming poverty and unemployment that occur after the pandemic. The method that researchers used in writing this article was a qualitative approach, supported by the thick description method. In addition, with literature study which will be used as a supporting method to find valid data. The results of the study found that the government is less empowering the informal sector and also these Micro, Small and Medium Enterprises (MSMEs). In fact, jobs in the informal sector and Micro, Small and Medium Enterprises or MSMEs can be an alternative medium to reduce poverty and unemployment. Through CSR programs from existing companies, it is hoped that the community can be empowered as well as the informal sector and MSMEs. When corporations or companies carry out empowerment activities for the informal sector and also MSMEs, it is possible that the problems of poverty and unemployment that have occurred due to the COVID-19 pandemic can be reduced and overcome.


2021 ◽  
pp. 001946622110401
Author(s):  
Renjith Ramachandran ◽  
Subash Sasidharan

This study analyses the impact of co-location between formal and informal manufacturing sectors on plant-level productivity. We employ a unique data obtained by merging plant-level data from Annual Survey of Industries (ASI 2011–2012) and Survey of Unorganised Manufacturing and Repairing Enterprises provided by National Sample Survey Office (NSSO 67th round). We find that formal and informal manufacturing plants gain from localisation. Further, co-location with informal enterprises has a positive impact on productivity of formal sector plants; however, we observe insignificant impact of co-location on informal sector enterprises. Additionally, we find evidence that informal sector enterprises benefit from industrially diversified regions. JEL Classifications: D24, R12, R3


Significance The pandemic appears to have further increased the size of Peru’s large informal sector, in which productivity and remuneration are both low. Earlier economic growth did not feed through into a fall in informality. Impacts The measures announced will put further pressure on the government to raise revenue. Increased taxation is likely to fall on the business sector, including the mining industry. Growth will be generated more by increased external than domestic demand. Vaccination rates are set to speed up.


Sign in / Sign up

Export Citation Format

Share Document