Finance & Development, June 2007 ePub (Adobe DRM) download by Jeremy Clift

Finance & Development, June 2007

INTERNATIONAL MONETARY FUND
Publication date: June 2007
ISBN: 9781455270804
Digital Book format: ePub (Adobe DRM)

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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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