Regulation, governance and informality: an empirical analysis of selected countries

The Informal Economy provides employment to more than 60 per cent of the labour population in the developing world despite being a site unfettered by regulations and social norms of fairness governing pay and work conditions. In assessing the factors behind an informal agent’s decision to formalize, it is asserted that rigidity in regulatory mechanism is the primary cause that impedes the process of formalization. However whether flexible regulations can encourage formalization by making gains of formalization more accessible and certain remains a question. In this paper we argue that flexible regulations does not necessarily manifest into the incentives that are essential for formalization. Reducing rigidities in regulation has a significant pay off only in the ambit of good governance. More specifically we hypothesise that degree of intensity of regulation will hardly matter in containing informality; rather what matters is the quality of governance and capability of the institutions to put the regulations into effect. Using secondary data for 46 countries over the period between 1980 and 2008, we empirically investigate into the linkages between governance, regulation and informal employment by developing static and dynamic panel data models and establish that in curbing informality what turns out to be crucial is the interaction between quality of governance and regulation

Determinants of crime rates: Crime Deterrence and Growth in post-liberalized India

Becker’s analysis of crime and punishment has initiated a series of theoretical and empirical works investigating the determinants of crime. However, there is a dearth of literature in the context of developing countries. This paper is an attempt to address this deficiency. The paper investigates the relative impact of deterrence variables (load on police force, arrest rates, charge sheet rates, conviction rates and quick disposal of cases) and socio-economic variables (economic growth, poverty,, urbanization and education) on crime rates in India. State-level data is collected on the above variables for the period 1999 to 2005.Zellner’s SURE model is used to estimate the model. Subsequently, this is extended by introducing endogeneity. The results show that both deterrence and socioeconomic factors are important in explaining crime rates. However, some of their effects are different from that observed in studies for developed countries.Crime, Deterrence, Growth, India, SURE Model

Regulation, enforcement and informality: an analysis based on selected countries

The informal economy has been occupying a key position in the development-discourse ever since it was ‘discovered’ in the Ghana in the second half of the 20th century. A good deal of literature has grown up in the past forty years with efforts to ‘formalize’ the concept of informality and to integrate it with mainstream development economic theory. In particular, there is a strong controversy regarding the appropriate policy response to informality: Should it be left on its own or should the state intervene in the functioning of the informal sector? And, if the state needs to regulate the informal sector, what instruments of regulation can it possibly put to use? Based on the literature that has developed around these issues, the paper provides a formal econometric model of regulation and enforcement. Using secondary data collected for 46 countries from different sub-continents over the period between 1980 and 2008, this study explores the inter-relationship among regulation, enforcement and the level of informal employment for different countries across the world. The study establishes that regulation by itself has no role in reducing or aggravating the level of informality in an economy. Regulation will only affect levels of informality when it is enforced.Informal sector, Regulations, Panel data

Self Help Groups and empowerment of women: Self-selection or actual benefits?

Evidence on success of SHGs in empowering females is mixed. In particular, researchers argue that such schemes often attract women who are already active in the public domain (referred to as ‘self-selection’), so that those who are most in need of assistance remain excluded. Simultaneously, the fact that a majority of the SHG members are already empowered leads to exaggerated estimates of the effects of the program (called ‘program effects’). This paper attempts to test the significance of the program effect of SHGs by comparing empowerment levels of newly inducted and older members of SHGs. The paper is based on a survey conducted in six municipalities in West Bengal, India.Empowerment; Self Help Groups; Non-parametric tests; Self-selection effect; India; Asia

Contraceptive use among illiterate women in India: does proximate illiteracy matter?

Illiterate women comprise a particularly vulnerable section of the community. They lack empowerment, are unable to voice their choice with respect to contraceptive use, and also lack access to health services. However, their lack of literacy may be compensated if their partners are literate. Contraceptive use of such illiterate women (proximate literates), may be higher than that of illiterate women whose partners too are illiterates (isolate illiterates). The study uses the third wave of the Demographic Health Survey data for India (2005-2006).The 34,108 currently married illiterate women for whom data is available in the Individual file was divided into two groups, based on whether their partners were literate. Current use of modern contraceptives was compared between these two groups for socio-economic and demographic correlates. This was followed by multivariate analysis based on a logit model. Current use of modern methods was regressed on a dummy representing whether the partner was literate, along with relevant control variables. The results of the All-India (Rural+Urban) and All-India (Rural) models indicated that literacy of partners did lead to a significantly higher level of use of modern contraceptive methods. For the urban sub-sample, however, the study failed to find any significant transmission of information from the literate partner to the respondents. Disaggregate-level analysis also revealed that such transmission was restricted to only specific situations and communities. The study argued that the results may be explained by: [a] Reluctance of the male partner to share information; [b] Lack of information about family planning methods, even when there is communication; and [c] Presence of alternative channels of information reducing dependence of illiterate women on her partner. There should be an attempt to increase information of both partners through face to face interaction, rather than relying solely on public media. Simultaneously, women should be encouraged to develop contacts outside her household as this can reduce her dependence of partner for family planning related knowledge.Contraceptives, Literacy, Reproductive Health, India

Gender disparities in primary education across siblings: is intra household disparity higher in regions with low child sex ratios?

Strong son preference in developing countries often motivates parents to undertake sex selection at birth, infanticide, and subsequent neglect of daughters, leading to low child sex ratios in these countries. An interesting question is whether such attitudes also lead to gender discrimination in primary education. While there is a vast literature on inter-household gender discrimination in education, studies of discrimination between siblings is comparatively rare. This paper asks the question: Do parents tend to educate sons more than daughters? Using unit level National Sample Survey Organization data for the 61st Round (2004-2005), we analyze disparity in primary educational attainments between siblings and examine whether such intra-household disparity is higher in areas where child sex ratios are low. Findings indicate that parental attitude towards education and practices may be more complicated and less uniformly negative at lower levels of education than commonly portrayed.Education, Gender, Sibling, India

BISPHENOL A DOSE- AND TIME-DEPENDENTLY INDUCES OXIDATIVE STRESS IN RAT LIVER MITOCHONDRIA EX VIVO

Objective: The probable toxic effects of bisphenol A (BPA) on different physiological functions have been reported in animal models. The role of BPA in mitochondrial oxidative stress has not been reported till date. The present study is aimed to elucidate dose- and time-dependent oxidative stress generation by BPA, respectively, in rat liver mitochondria in ex vivo model. Methods: The incubation mixture of BPA-treated groups containing mitochondria, 50 mM potassium phosphate buffer (pH 7.4), and different concentrations of BPA (20–160 μM/ml) (dissolved in 12% DMSO) in a final volume of 1.0 ml was incubated at 37°C in incubator for different time durations (30 min–2 h). Whereas, the incubation mixture of control group contained DMSO (12%), mitochondria and 50 mM potassium phosphatebuffer (pH 7.4).' will be replaced by ‘Whereas, the incubation mixture of control group contained the same constituents except BPA. Result: We have observed significant decrease in mitochondrial intactness incubated with BPA in dose- and time-dependent manner under bright field and confocal microscopic study compared to control. Further, we have observed a decrease in mitochondrial reduced glutathione (GSH) content and increase in lipid peroxidation and protein carbonylation levels in dose- and time-dependent manner in BPA-exposed mitochondria. We have found a significant increase in the activity of Mn-superoxide dismutase and decrease in the activities of GSH peroxidase, GSH reductase, pyruvate dehydrogenase, and other three enzymes of Kreb's cycle dose and time dependently in BPA-exposed mitochondria. The results indicate that exposure to BPA leads to decrease in intactness of mitochondria and increase in oxidative stress in mitochondria isolated from rat liver in a dose- and time-dependent manner. Conclusion: It can be concluded that the incubation of mitochondria isolated from rat liver with BPA, caused oxidative stress-mediated damages in mitochondria in both dose- and time-dependent manners

Regulation, enforcement and informality: an analysis based on selected countries

The informal economy has been occupying a key position in the development-discourse ever since it was ‘discovered’ in the Ghana in the second half of the 20th century. A good deal of literature has grown up in the past forty years with efforts to ‘formalize’ the concept of informality and to integrate it with mainstream development economic theory. In particular, there is a strong controversy regarding the appropriate policy response to informality: Should it be left on its own or should the state intervene in the functioning of the informal sector? And, if the state needs to regulate the informal sector, what instruments of regulation can it possibly put to use? Based on the literature that has developed around these issues, the paper provides a formal econometric model of regulation and enforcement. Using secondary data collected for 46 countries from different sub-continents over the period between 1980 and 2008, this study explores the inter-relationship among regulation, enforcement and the level of informal employment for different countries across the world. The study establishes that regulation by itself has no role in reducing or aggravating the level of informality in an economy. Regulation will only affect levels of informality when it is enforced

Regulation, enforcement and informality: an analysis based on selected countries

The informal economy has been occupying a key position in the development-discourse ever since it was ‘discovered’ in the Ghana in the second half of the 20th century. A good deal of literature has grown up in the past forty years with efforts to ‘formalize’ the concept of informality and to integrate it with mainstream development economic theory. In particular, there is a strong controversy regarding the appropriate policy response to informality: Should it be left on its own or should the state intervene in the functioning of the informal sector? And, if the state needs to regulate the informal sector, what instruments of regulation can it possibly put to use? Based on the literature that has developed around these issues, the paper provides a formal econometric model of regulation and enforcement. Using secondary data collected for 46 countries from different sub-continents over the period between 1980 and 2008, this study explores the inter-relationship among regulation, enforcement and the level of informal employment for different countries across the world. The study establishes that regulation by itself has no role in reducing or aggravating the level of informality in an economy. Regulation will only affect levels of informality when it is enforced

Use of hospital services and socio-economic status in urban India: Does health insurance ensure equitable outcomes?

In recent years universal health coverage has become an important issue in developing countries. Successful introduction of such a social security system requires knowledge of the relationship between socio-economic status and usage of health care services. This paper examines this relationship, and analyzes the impact of introducing health insurance into the model, using data for India, a major developing country with poor health outcomes. In contrast to similar works undertaken for developed countries, results of the instrumental variable model estimated reveals that the positive relation between usage of in-patient services and socio-economic status persists even in the presence of health insurance. This implies that insurance is unable to eliminate the inequities in accessing health care services stemming from disparities in socio-economic status. In fact, the presence of a double moral hazard and adverse selection leads to further attenuation of inequity in the health care market. The study is based on unit level data from the “Morbidity and Health Care Survey” undertaken by the National Sample Survey Organization (2005-06)