Informal Employment and Retirement: Family Support as a Substitute for Pension

Renginar Dayangac and Bilge Ozturk Goktuna

No 4786, EcoMod2012 from EcoMod

Abstract: This paper suggests a demand side analysis of informal employment characterised by incompliances with labour tax regulation using a general equilibrium model with overlapping generations. A public social insurance provide benefits to formal employees in retirement, while we allow for an informal insurance mechanism for informal employees through a social norm of mutual support. The objective of the paper is to evaluate impact of auditing policy and social norms on growth and social welfare. We define the level of private transfers to the uncovered share of the population and provide an analysis on the impact of social support networks as well as auditing policies to wage levels, growth and welfare. See above See above

Keywords: NA; General equilibrium modeling (CGE); Labor market issues (search for similar items in EconPapers)
Date: 2012-07-01
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Persistent link: https://EconPapers.repec.org/RePEc:ekd:002672:4786

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