Taxes, Inequality and the Size of the Informal Sector

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A Theory of the Worst Forms of Child Labour (2005, unknown): “In fact, higher costs of operating in the formal sector, due, for example, to widespread corruption or excessive regulatory burden, can create en environment favourable to the adoption of such technologies, which make the country’s weak institutions equally blameworthy (Dessy & Pallage, 2003).”
Informality Trends and Cycles (2006, unknown): “…have studied the relationship between informality and growth (Loayza, 1996), informality and rent-seeking (Sarte, 2000), inequality and the size of the informal sector (Dessy and Pallage, 2003), and the relationship between informality and the structure of taxation (de Paula and Sheinkman, 2006).”
Governance regimes, corruption and growth: theory and evidence (2008, background): “We, therefore, find it reasonable to follow Dessy and Pallage (2003), Ihrig and Moe (2004) and many others and model the sector choice as being voluntary.”
Job Search and Mobility in Developing Countries. Theory and Policy Implications (2008, background): “In particular, they have studied how the informal sector generates externalities (both positive and negative) for the formal economy (see e.g. Marcoullier and Young, 1995; Dessy and Pallange, 2003; Fugazza and Jacques, 2003).”