Informality, Corruption, and Inequality

Ajit Mishra, Ranjan Ray

Research output: Working paper

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Abstract

The paper looks at the determinants of the size of the informal sector. We argue that corruption and informality complement each other and are jointly determined by various market and non-market variables. Our theoretical model as well empirical exercises focus on wealth and income inequality as a key determinant. High degree of inequality leads to bigger informal sector. We offer several plausible channels through inequality can impact the size of the informal sector.
Original languageEnglish
Place of PublicationBath, U. K.
PublisherDepartment of Economics, University of Bath
Publication statusPublished - 2010

Publication series

NameBath Economics Research Working Papers
No.13/10

Keywords

  • product
  • informal sector
  • corruption
  • differentiation
  • credit market
  • inequality

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  • Cite this

    Mishra, A., & Ray, R. (2010). Informality, Corruption, and Inequality. (Bath Economics Research Working Papers; No. 13/10). Department of Economics, University of Bath.