Measuring The Informal Economy In Latin America And The Caribbean
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Measuring the Informal Economy in Latin America and the Caribbean
Author | : Guillermo Javier Vuletin |
Publisher | : INTERNATIONAL MONETARY FUND |
Total Pages | : 29 |
Release | : 2008-04-01 |
Genre | : |
ISBN | : 9781451869637 |
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This paper estimates the size of the informal economy for 32 mainly Latin American and Caribbean countries in the early 2000s. Using a structural equation modeling approach, we find that a stringent tax system and regulatory environment, higher inflation, and dominance of the agriculture sector are key factors in determining the size of the informal economy. The results also confirm that a higher degree of informality reduces labor unionization, the number of contributors to social security schemes, and enrollment rates in education.
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