Cover IMF Working Papers
Measuring the Informal Economy in Latin America and the Caribbean
Author: Guillermo Javier Vuletin1
  • 1 https://isni.org/isni/0000000404811396, International Monetary Fund
Series:
IMF Working Papers
Volume/Issue:
Volume 2008: Issue 102
Language:
English
Publication Date:
01 Apr 2008
DOI:
https://doi.org/10.5089/9781451869637.001
ISBN:
9781451869637
ISSN:
1018-5941
Pages:
29
Keywords:
WP; informal economy share; tax burden
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund

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