Informal Employment

The myth surrounding negative connotation of informal employment / informal economy work engagement is one that needs to be revisited as research ventures must be pursued in the direction of encouraging those engaged in it to feel quite elated about their boldness in becoming actively involved in economic development activities. Equally, sensitive approaches should be pursued in pursuance of government statutory obligations in addressing core services like expenditures connected with education and health for example, which can only be achieved through revenue raised from genuine contributions made by the workforce, be it through formal or informal work engagement

Study on labour supply when tax evasion is an option with Box-Cox functional forms and random parameters

Labour supply when tax evasion is an option is analysed within a discrete choice framework which incorporates random parameters and Box-Cox functional forms, using mixed logit models. Deviates in parameters and, in some cases, correlation between alternatives in the evasion group are found to be significant. The models utilized yield good predictions in terms of labour supply and taxes paid by nonevaders. The goodness-of-fit and quality of prediction is improved by the introduction of correlation between random coefficients.