Education and informality: what welfare effects are at stake?

Andrea Doneschi () and Rossana Patrón ()
Additional contact information
Rossana Patrón: Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República

No 512, Documentos de Trabajo (working papers) from Department of Economics - dECON

Abstract: Although the wage distribution is central to analysing inequality issues, the provision of public services destined for t he poor can make an essential difference in evaluating inequality in welfare rather than in income. Whereas raising taxes to fund public services would lead to a distributional conflict along with an efficiency loss, lower informality levels as a source of government revenue would make everyone better off. The simulation results suggest that, given the important size of the informal sector in developing countries, government intervention to reduce informality has great potential as an efficient redistributional tool.

Keywords: informality; education; inequality (search for similar items in EconPapers)
JEL-codes: I3 J2 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2012-06
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://hdl.handle.net/20.500.12008/2228 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ude:wpaper:0512

Access Statistics for this paper

More papers in Documentos de Trabajo (working papers) from Department of Economics - dECON Contact information at EDIRC.
Bibliographic data for series maintained by Andrea Doneschi () and ().