Entrepreneurship and the Informal Economy: An Empirical Analysis

Abstract

This paper presents an empirical study investigating the effect of entrepreneurship on the incidence of informal employment. It builds upon economic models exploring the determinants of informal economy by analyzing the role played by institutions and policies and their effect on the informal sector. Among policies examined are payroll and severance taxes, labor and product market regulations, unemployment benefits, firing and hiring costs, enforcement of financial contracts and financial costs. The empirical analysis is based on a panel data approach. The main result of the paper supports the view that the informal sector is an “unregulated micro-entrepreneurial sector.” The findings suggest that differences in the level of entrepreneurial activities across developing countries are associated with variance in the incidence of informal employment, and that entrepreneurship has a positive effect on the informal sector. The incidence of informal employment is strongly affected by the public perception of government performance, role, accountability and effectiveness, as well as labor market and business regulations.

Methodology for selecting objects for reverse engineering at oil and gas industry enterprises

“…Reverse engineering is the study of some ready-made device or program, as well as documentation on it in order to understand the principle of its operation; for example, to discover undocumented features (including software bookmarks), to make changes or reproduce a device, program or other object with similar functions, but without direct copying. Copying various mechanisms and machines without actually developing them [6,[17][18][19][20].…”

Small Business Taxation And Informal Employment

“…On the basis of data on tax revenues, the state administration makes forecasts for the further development of the region in one direction or another, the reliability and quality of which significantly affects the effectiveness of the state policy as a whole. The construction of an empirical model that includes elements of the informal sector of the economy is necessary to establish links between the determinants of impact and the result (Petrova, 2016). As a consequence, the analysis result can be an assessment of the scale of the informal employment sector, which requires a qualitative justification of the factors influencing the forecast decisions, their comprehensive analysis and critical assessment.…”