Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/162336
Authors: 
Dell’Anno, Roberto
Year of Publication: 
2016
Citation: 
[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Year:] 2016 [Issue:] 325
Abstract: 
Higher inequality reduces capital accumulation and increases the informal economy, which creates additional employment opportunities for low-skilled and deprived people. 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. However, convincing empirical evidence is still lacking and is usually limited to correlations rather than causal effects.
Subjects: 
informality
inequality
shadow economy
JEL: 
D64
H41
J31
Persistent Identifier of the first edition: 
Document Type: 
Article

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