The Long Shadow of Informality

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T H E L O NG S HA D O W O F I N F O R MA L I T Y

C H A P T ER 3

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References Angrist, J. D., and J.-S. Pischke. 2009. Mostly Harmless Econometrics: An Empiricist’s Companion. Princeton University Press: Princeton, NJ. Arvin-Rad, H., A. K. Basu, and M. Willumsen. 2010. “Economic Reform, Informal-Formal Sector Linkages and Intervention in the Informal Sector in Developing Countries: A Paradox.” International Review of Economics & Finance 19 (4): 662-70. Bajada, C. 2003. “Business Cycle Properties of the Legitimate and Underground Economy in Australia.” Economic Record 79 (247): 397-411. Beladi, H., M. Dutta, and S. Kar. 2016. “FDI and Business Internationalization of the Unorganized Sector: Evidence from Indian Manufacturing.” World Development 83: 340-49. Bosch, M., and J. Esteban-Pretel. 2012. “Job Creation and Job Destruction in the Presence of Informal Markets.” Journal of Development Economics 98 (2): 270-86. Bosch, M., E. Goni, and W. Maloney. 2007. “The Determinants of Rising Informality in Brazil: Evidence from Gross Worker Flows.” Policy Research Working Paper 4347, World Bank, Washington, DC. Bosch, M., and W. F. Maloney. 2008. “Cyclical Movements in Unemployment and Informality in Developing Countries.” Policy Research Working Paper 4648, World Bank, Washington, DC. Bry, G., and C. Boschan. 1971. Cyclical Analysis of Time Series: Selected Procedures and Computer Programs. New York: National Bureau of Economic Research. Busato, F., and B. Chiarini. 2004. “Market and Underground Activities in a Two-Sector Dynamic Equilibrium Model.” Economic Theory 23 (4): 831-61. Chen, M. 2005. “Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment.” UNU-WIDER Working Paper 2005/10, United Nations University World Institute for Development Economics Research, Helsinki. Çiçek, D., and C. Elgin. 2011. “Cyclicality of Fiscal Policy and the Shadow Economy.” Empirical Economics 41 (3): 725-37. Claessens, S., A. Kose, and M. Terrones. 2012. “How Do Business and Financial Cycles Interact?” Journal of International Economics 87 (1): 178-90. Colombo, E., L. Onnis, and P. Tirelli. 2016. “Shadow Economies at Times of Banking Crises: Empirics and Theory.” Journal of Banking & Finance 62 (C): 180-90. Dell’Anno, R. 2008. “What Is the Relationship between Unofficial and Official Economy? An Analysis in Latin American Countries.” European Journal of Economics, Finance and Administrative Sciences 12: 185-203. Dix-Carneiro, R., P. Goldberg, C. Meghir, and G. Ulyssea. 2021. “Trade and Informality in the Presence of Labor Market Frictions and Regulations.” NBER Working Paper 28391, National Bureau of Economic Research, Cambridge, MA. Docquier, F., T. Müller, and J. Naval. 2017. “Informality and Long-Run Growth.” Scandinavian Journal of Economics 119 (4): 1040-85.


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Articles inside

References

17min
pages 344-353

Annex 6A Policies and informality

3min
pages 323-324

Fiscal measures

2min
page 301

Data and methodology

2min
page 300

6.1 Financial development and the informal economy

9min
pages 290-294

6.8 Informality after labor market reforms in EMDEs

2min
page 313

Conclusion

2min
page 271

References

20min
pages 272-284

Conclusion

2min
page 319

Latin America and the Caribbean

2min
page 251

South Asia

2min
page 260

Sub-Saharan Africa

4min
pages 264-265

Middle East and North Africa

2min
page 255

Europe and Central Asia

2min
page 246

East Asia and Pacific

2min
page 241

Informality in EMDEs

2min
page 237

References

24min
pages 222-234

4D.7 Regression: Changes in informality and poverty reduction

2min
page 208

competition

2min
page 206

4D.8 Regression: Changes in informality and improvement in income inequality

1min
page 209

4D.14 Regression: Developmental challenges and DGE-based output informality in EMDEs

5min
pages 216-218

Annex 4C Bayesian model averaging approach

4min
pages 200-201

4D.4 Regression: Labor productivity of formal and informal firms 4D.5 Regression: Labor productivity of formal firms facing informal

1min
page 205

Annex 4B Regression analysis

2min
page 199

Annex 4A Meta-regression analysis

2min
page 198

Informality and SDGs related to human development

2min
page 191

Informality and SDGs related to infrastructure

2min
page 193

4.3 Informality, poverty, and income inequality

5min
pages 180-182

Informality and institutions

2min
page 189

Finding the needle in the haystack: The most robust correlates

2min
page 195

Conclusion

1min
page 197

Informality and economic correlates

2min
page 179

4.2 Casting a shadow: Productivity in formal and informal firms

4min
pages 167-168

Links between informality and development challenges

2min
page 165

4.1 Informality and wage inequality

8min
pages 158-161

References

6min
pages 147-152

Conclusion

2min
page 136

Data and methodology

2min
page 129

Literature review: Linkages between formal and informal sectors

6min
pages 126-128

References

13min
pages 115-122

2B.9 World Values Survey

1min
page 114

2B.8 MIMIC model estimation results, 1993-2018

1min
page 113

Future research directions

2min
page 54

Database of informality measures

14min
pages 81-86

References

10min
pages 55-62

Key findings and policy messages

6min
pages 36-38

Definition of informality

4min
pages 79-80

Conclusion

2min
page 99

Annex 2A Estimation methodologies

9min
pages 100-103

16 Informality indicators and entrepreneurial conditions in Sub-Saharan

2min
page 35
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