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Government Effectiveness and Regional Variation in Informal Employment

Författare:
  • Erik Jonasson
Publiceringsår: 2012
Språk: Engelska
Sidor: 481-497
Publikation/Tidskrift/Serie: Journal of Development Studies
Volym: 48
Nummer: 4
Dokumenttyp: Artikel i tidskrift
Förlag: Taylor & Francis

Sammanfattning

Abstract in Undetermined

This article analyses the role of government effectiveness in the determination of informal employment. A theoretical model is developed, in which local governance and worker skill level are assumed to influence the decision of the worker whether to seek employment in the formal or informal sectors. The model is assessed empirically using data from Brazil, where almost half of the urban labour force is employed informally. The empirical analysis supports the predictions of the model and suggests that the probability of a worker being employed informally is lower in regions with better governance and higher average education.

Nyckelord

  • Economics

Övriga

Published
  • ISSN: 0022-0388

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