Rethinking the informal labour from an evolutionary point of view

ÖZTÜRK GÖKTUNA B., Dayangac R.

JOURNAL OF SOCIO-ECONOMICS, cilt.40, sa.5, ss.609-615, 2011 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 40 Sayı: 5
  • Basım Tarihi: 2011
  • Doi Numarası: 10.1016/j.socec.2011.04.017
  • Dergi Adı: JOURNAL OF SOCIO-ECONOMICS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, Academic Search Premier, Business Source Elite, Business Source Premier, EconLit, PAIS International, Political Science Complete, Public Affairs Index, Social services abstracts, Sociological abstracts, Violence & Abuse Abstracts, Worldwide Political Science Abstracts
  • Sayfa Sayıları: ss.609-615
  • Galatasaray Üniversitesi Adresli: Evet

Özet

The model presents the dynamics and the equilibrium of an overlapping generation economy when there is informal employment, a pension system and altruistic agents. The model inspires from stylised facts on developing and Euro-Mediteranean countries where family plays a central role in risk insurance. The rational is emphasised by lower costs compared to private and public insurance systems. Given an initial distribution of the informally employed individuals, the model captures the effects of social security decisions and anticipated bequests on the preference of the agents for formal or informal employment. The impact of fiscal policies on the distribution of employment to formal and informal categories is analysed through the political competition. We show that opportunist behaviour would amplify the relative size of the informal employment. (C) 2011 Elsevier Inc. All rights reserved.