Reading Development

Random readings on society, politics and change – Jorge Carrillo

Explaining and tackling the informal economy: an evaluation of competing perspectives

This paper provides an evidence-based evaluation of the competing ways of explaining and tackling the informal economy. Conventionally, participants have been viewed as rational economic actors who engage in the informal economy when the benefits outweigh the costs, and thus participation is deterred by increasing the sanctions and/or risks of detection. Recently, however, an alternative social actor approach has emerged viewing participation to result from a lack of vertical trust (i.e., their norms, values and beliefs are not in symmetry with the laws and regulations) and horizontal trust (i.e., they believe many others are non-compliant). Reporting 2,000 face-to-face interviews conducted in Croatia in 2015, only a weak and partial association is found between participation in the informal economy and the perceived level of penalties and risks of detection, but a strong significant association with both the level of vertical and horizontal trust. Those who perceive a larger proportion of the population to be engaged in the informal economy, and those whose norms differ to the laws and regulations, display a significantly greater likelihood of participating in the informal economy. The theoretical and policy implications are then discussed.

[Download paper]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Information

This entry was posted on Saturday, 28 December 2019 by in Poverty and inequality, Urban issues and tagged , .
Learning Community

A Learning Change Project Blog

Political Prisoners in Thailand

Oppose lese majeste law and human rights abuses in Thailand

Development Matters

Development Matters is a platform for discussions on development opportunities and challenges.

The Undercover Historian

Beatrice Cherrier's blog

Mapping for Development

Urban Studies x Sustainable Development x Geospatial Analysis

Culture and Capitalism

A Sussex University Anthropology blog

Rethinking international development

Alternative paradigms, practices and challenges

the city inside out

A blog on gender, citizenship and urban life

POLLEN

Political Ecology Network

From Rurban to Urban

Reinventing the Finnish City

ENTITLE blog - a collaborative writing project on Political Ecology

a collaborative writing project on Political Ecology

Economic Sociology & Political Economy

The global community of academics, practitioners, and activists interested in Economic Sociology & Political Economy -- led by Oleg Komlik

Real-World Economics Review Blog

Posts are by authors of papers published in the RWER. Anyone may comment.

misplacedhabits

Just another WordPress.com site

Progressive Geographies

Thinking about place and power - a site written and curated by Stuart Elden

Another WORD is Possible

Words & Fotos ON / All rights reserved © Lee Yu Kyung 2020

{FAVEL issues}

urban informality + urban development

Wait... What?

discussions on digital ethics. privacy and power

According...to Law

Foreigners' Rights and Layman's Legal Overview for Thailand

JCA

News about the journal, new articles, free downloads and more

Som Tam. Anytime.

Je procrastine (beaucoup). Mais des fois j'écris (un peu).

Perspectives in Anthropology

Internet-based magazine

AID LEAP

A motley group of international aid bloggers, practitioners, and critics. Interested in impact, poverty, evidence, and throwing things off planes.

Yanis Varoufakis

THOUGHTS FOR THE POST-2008 WORLD

%d bloggers like this: