European Parliament Library

Measuring the Informal Economy in Latin America and the Caribbean, Guillermo Javier Vuletin

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
Table Of Contents
Contents; I. Introduction; II. Methods for Measuring the Size of the Informal Economy; III. Data; A. Cause Variables; B. Indicator Variables; IV. Empirical Results; A. Preliminary Evidence; B. MIMIC Estimation Results; C. Estimation of the Size of the Informal Economy; D. Relative Contribution of Each Cause Variable to the Size of the Informal Economy; V. Concluding Remarks; References; Appendix; Data Construction and Sources; Figures; 1. MIMIC Estimation Results, Model 1; 2. MIMIC Estimation Results, Model 2; 3. MIMIC Estimation Results, Model 3; 4. Estimated Size of the Informal Economy
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (31 p.)
Form Of Item

Library Locations

  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR
  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU
  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE