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Loading... Measuring the informal economy in Latin America and the Caribbeanby Guillermo Javier Vuletin
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This paper estimates the size of the informal economy for 32 mainly Latin American and Caribbean countries in the early 2000's. 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. No library descriptions found. |
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