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- W2345781186 abstract "Many countries rely on the informal economy as a source of employment. These same countries also experience a significant amount of corruption. Corruption may exacerbate the existing formal-informal income gap, as it increases income inequality. Using individual and municipal level data from Brazil, we show that this is in fact the case. The income gap is larger in municipalities that experience more corruption. This finding holds after controlling for selection effects and is robust to the exclusion of taxes and corruption related costs from income. Thus, addressing the formal-informal income gap problem may first require the elimination of corruption." @default.
- W2345781186 created "2016-06-24" @default.
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- W2345781186 date "2016-01-01" @default.
- W2345781186 modified "2023-09-27" @default.
- W2345781186 title "Does Corruption Impact the Formal-Informal Sector Income Gap? Evidence from Brazil" @default.
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- W2345781186 doi "https://doi.org/10.2139/ssrn.2773038" @default.
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