The informal sector and tax on employment: A dynamic general equilibrium investigation

Download

index.pdf

Date

2008-02-01

Author

Saraçoğlu, Dürdane Şirin

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

205
views

195
downloads

This paper elaborates on the evolution of the informal sector vis-a-vis the evolution of agricultural and formal sectors in a developing country economy in process of growth. The analytical contribution of this essay extends the Ramsey theory of growth into a framework that includes an informal sector and household preferences that display Engel effects in agricultural and in informally produced goods. Besides showing that the informal sector's importance diminishes over time as the country's economy grows, the results from the model demonstrate that a country can successfully reduce its informal employment by reducing tax on employment in the formal sector.

Subject Keywords

Informal Sector, Economic Growth, Employment tax, Middle East, Turkey

URI

https://hdl.handle.net/11511/35769

Journal

JOURNAL OF ECONOMIC DYNAMICS & CONTROL

DOI

https://doi.org/10.1016/j.jedc.2007.01.035

Collections

Department of Economics, Article

Suggestions

OpenMETU
Core

The Role of Knowledge on Economic Growth: The Case of Turkey, 1963-2010 Utku İsmihan, Fatma M. (Science And Technology Policies Research Center, Middle East Technical University (Ankara, Turkey), 2012) The importance of knowledge for long-run economic growth has long been an important research area for economists and policy makers. This paper attempts to analyze the impact of knowledge on economic growth in Turkey over the 1963-2010 period, by using a production function approach. In contrast to early studies, which have analyzed the impact of a single dimension of knowledge on economic growth, a knowledge index is constructed to see the impact of various dimensions of knowledge with a single and comprehe...
The Unemployment problem and employment creation strategies in Turkey: a comparative perspective Gökşen Uğurer, Seçil; Şenses, Fikret; Department of Economics (2012) This thesis analyzes the Turkish unemployment problem in the 2000-2011 period, in a broad and comparative perspective with unemployment problem in the Netherlands, Ireland and Argentina. However, periods of concern for these three countries and Turkey differ, because each country experienced severe unemployment problem in different time periods. The main objective of this thesis is to evaluate current policies dealing with unemployment problem in Turkey and suggest more effective policy alternatives, with r...
The growth of income and energy consumption in six developing countries Sarı, Ramazan; Soytaş, Uğur (2007-02-01) This paper reexamines the inter-temporal link between energy consumption and income in six developing countries with diverse economic backgrounds and energy statistics, in a production function framework. We employ the generalized variance decompositions and generalized impulse response techniques to see if the growth of income and energy consumption contains considerable information to predict each other. In all countries, energy appears as an essential factor of production. Results indicate that energy ma...
The role of regional policies along with the external and endogenous factors in the resilience of regions Eraydın, Ayda (2016-03-01) This article aims to discuss the importance of the different policies and measures defined by governments in the resilience of regions, besides their connectedness to the global economic system and their endogenous capacities. The article explores the importance of different attributes in the resilience of Turkish regions (26 NUTS II regions) in the last two recessionary shocks and in the following recovery periods. By analysing the role of regional policies in the resilience of regions in two distinct peri...
The impact of education on economic growth in Palestine: 1990-2014 Abugamea, Gaber H. (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2017-12) The objective of this paper is to measure the contribution of education to growth in per capita real GDP in Palestine over the period 1990-2014 by employing OLS estimation on the growth accounting formula. Over the period, per capita real GDP- increased in a yearly average by about 3.6 percent. Of about 47 percent contributed by total employed labor and capital components to economic growth only about 11 percent was contributed by education through private-public enrollments ratio. Whilst it is expecte...

Citation Formats

D. Ş. Saraçoğlu, “The informal sector and tax on employment: A dynamic general equilibrium investigation,” JOURNAL OF ECONOMIC DYNAMICS & CONTROL, pp. 529–549, 2008, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/35769.