Informality: the Doorstep of the Legal System

• Autorzy: Francesco Flaviano Russo
• Języki publikacji: EN

Abstrakty

EN

Many entrepreneurs work informally because it is costly to start and run a business legally. Using a dynamic model of industry equilibrium, I show that the costs of the legal system can explain the cross country variability of the size of the informal economy. The model implies that the business start-up costs are more important than taxes and labor market regulations. Small, less productive, entrepreneurs, facing high entry costs, start informally, waiting to become more productive before legalizing. Informality is often the doorstep of the legal system.(original abstract)

Słowa kluczowe

EN

Entrepreneurship; Startup; Legal regulations; Legal system

PL

Przedsiębiorczość; Przedsiębiorstwo typu start-up; Regulacje prawne; System prawny

• Czasopismo: Open Economics
• Rocznik: 2018
• Numer: vol. 1, iss. 1
• Strony: 49--70

Twórcy

autor

Francesco Flaviano Russo

• University of Naples Federico II, Napoli, Italy

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Identyfikatory

DOI

https://doi.org/10.1515/openec-2017-0004