Artikel

Inequality and informality in transition and emerging countries

Higher inequality reduces capital accumulation and increases the informal economy, which creates additional employment opportunities for low-skilled and deprived people. As a result, informal employment leads to beneficial effects on income distribution by providing sources of income for unemployed and marginalized workers. Despite this positive feedback, informality raises problems for public finances and biases official statistics, reducing the effectiveness of redistributive policies. Policymakers should consider the links between inequality and informality because badly designed informality-reducing policies may increase inequality.

Sprache
Englisch

Erschienen in
Journal: IZA World of Labor ; ISSN: 2054-9571 ; Year: 2021 ; Bonn: Institute of Labor Economics (IZA)

Klassifikation
Wirtschaft
Altruism; Philanthropy; Intergenerational Transfers
Public Goods
Wage Level and Structure; Wage Differentials
Thema
informality
inequality
shadow economy

Ereignis
Geistige Schöpfung
(wer)
Dell'Anno, Roberto
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2021

DOI
doi:10.15185/izawol.325.v2
Handle
Letzte Aktualisierung
12.07.2024, 13:20 MESZ

Objekttyp

  • Artikel

Beteiligte

  • Dell'Anno, Roberto
  • Institute of Labor Economics (IZA)

Entstanden

  • 2021

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