Informality in a micro economy: Measurement, composition and consequences

Besim, Mustafa
Ekici, Tufan
Jenkins, Glenn P.
This article measures the extent of - and unrecorded income generated by - informal employment in a micro economy characterized by poor governance. Household survey and census data are used to estimate the number of informal workers in Northern Cyprus and analyse the characteristics of informal employment, for the period 2004-11. Informal workers are mostly comprised of citizens with no social security registration, illegally employed immigrants or second-job holders who have not registered their second jobs. In terms of value added, the estimated size of the informal economy is 9.1 per cent and 12.2 per cent of GNP in 2006 and 2011, respectively.


Race to the Bottom: Low Productivity, Market Power, and Lagging Wages
Taylor, Lance; Ömer Cender, Özlem (2019-01-01)
"Dualism" in the structure of production across sectors of the U.S. economy, employment by sector, productivity levels and growth, real wages, and intersectoral terms of trade increased markedly between 1990 and 2016. The discussion focuses on 16 sectors. Seven were "stagnant"-construction, education and health, other services, entertainment, accommodation and food, business services, and transportation and warehousing. They had low productivity levels, productivity growth rates hovering around zero, and lo...
Globalization, technological change and labor demand: a firm-level analysis for Turkey
MESCHİ, Elena; Taymaz, Erol; VİVARELLİ, Marco (2016-11-01)
This paper studies the interlinked relationship between globalization and technological upgrading in affecting employment and wages of skilled and unskilled workers in a middle income developing country. It exploits a unique longitudinal firm-level database that covers all manufacturing firms in Turkey over the 1992-2001 period. Turkey is taken as an example of a developing economy that, in that period, had been technologically advancing and becoming increasingly integrated with the world market. The empiri...
Financial development, financial openness and growth: an empirical investigation
Ünaldı Akgün, Burçin; Özmen, Erdal; Department of Economics (2011)
The economic literature posits that a well-functioning economy requires a well-regulated financial system, and a sound financial system is essential to the fundamentals of an economy, however, even the most influential economists disagree sharply about the role of the finance-growth relationship in economic development. One of the most important questions concerning financial openness is whether it spurs long-run economic growth, and if yes, do these benefits outweigh the risks for developing countries. In ...
The informal sector and tax on employment: A dynamic general equilibrium investigation
Saraçoğlu, Dürdane Şirin (2008-02-01)
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,...
Institutional political economy of economic development and global governance
Özçelik, Emre; Özveren, Eyüp; Department of Economics (2006)
There are two inter-related themes of this thesis: Economic development and global governance. We develop a perspective of what we call ‘Institutional International Political Economy’ (IIPE) in order to: i) assess the likelihood of developmental success on the part of the Third World countries in the twenty-first century, and ii) analyze the developmental and world-systemic implications of the so-called ‘global governance model’, which we conceptualize as an ultra-liberal capitalist project on the part of...
Citation Formats
M. Besim, T. Ekici, and G. P. Jenkins, “Informality in a micro economy: Measurement, composition and consequences,” INTERNATIONAL LABOUR REVIEW, pp. 353–371, 2015, Accessed: 00, 2020. [Online]. Available: