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Why is Informal Employment Too Difficult to Control? Further Evidence from Cultural Perspective

Aeggarchat Sirisankanan

Journal of Interdisciplinary Economics, 2018, vol. 30, issue 2, 128-147

Abstract: Much of the literature on informal employment examines the impact of tangible benefits such as earnings. Little attention has focused on the impact of non-pecuniary benefits on informality. The article has initially applied some of Schwartz’s cultural indices, which include autonomy and embeddedness as a proxy for the desire to be independent, and hypothesizes that such cultural perspective have a substantial influence on informal employment. Using many empirical approaches, the results show that embeddedness has a large, negative, significant effect on informal employment, while an increase in the level of intellectual autonomy results in a great expansion in informal employment. JEL: A14, J46, O17

Keywords: Informal employment; Schwartz’s cultural indices; autonomy; embeddedness; non-pecuniary benefits (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:sae:jinter:v:30:y:2018:i:2:p:128-147

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