Informality Tackled

In: Social Issues

Submitted By sam222
Words 654
Pages 3
To analyze the occurrence of informality in firms and their tendency to underreport their output, a regression is utilized. A sample of 690 firms is chosen for this purpose. We choose the variable “% of Firms expressing that a typical Firm reports less than 100 % of sales” that may act as a proxy for this inclination as the dependent variable. Several other variables are chosen to explain this dependent variable. These explanatory variables are: the firm’s age, ownership (domestic/private), exporter (whether it exports its product or not), % of firms using the web to communicate with clients/suppliers, % of firms using email to communicate with clients/suppliers, average number of unskilled production workers, average number of temporary workers, % of firms using technology licensed from foreign companies, % of firms expected to give gifts to secure a government contract, and the size of the firm. In addition, a constant is considered in the regression. After regressing the dependent variable on the above independent variables the following results have been attained:
(will insert equation and table of coefficients)

When the firms’ age is considered, a negative relationship can be deducted between it and the dependent variable illustrated by the negative coefficient -0.070. As the firm ages, it is expected to report its sales more accurately. The ages of the firms selected ranged from 2 years to 146 while the average age of these firms was 27.61. This may seem unsurprising as firms with a long history are not expected to underreport their output while new upcoming firms may be more willing to do that.
Exporting firms (firms who are expected to exports their output) are inclined to express that a typical firm reports less than 100% of sales by 0.042. From the sample, 459 firms were non-exporters while 230 do export their goods. This estimation may be…...

Similar Documents

Why Isn't Mexico Rich?

...principal reasons: 1. The failures in the provision of credit. 2. Informality and its link with social policy. 3. The lack of regulation and the unequal concentration of power in monopolies. 4. Vulnerability to foreign trade, particularly the export growth of China. The granting of credit is critical to the economic development process. Without mechanisms to move savings from lenders to borrowers, the country is unlikely to seize opportunities for productive investment. one possibility is that Mexican law makes it particularly difficult for banks repossessed the defaulters and is linked to the other possible explanation is that lenders will not lend to people who perceive themselves as poor criteria or risky, due to the weakness of the law enforcement if they do not pay. Besides the capital returns are up to five times the market interest rate, demonstrating the difficulty of having credit available to small businesses. Since the 1994–95 banking crisis, Mexico has overhauled its financial regulations. It has modernized accounting standards, permitted foreign ownership of banks, set reserves according to the riskiness of bank loan portfolios, modified deposit insurance, and sought to prevent insider lending. In Mexico it seems that the labor market in the informal sector is more sought after than in formal employment, which may indicate that informality suppresses the accumulation of human capital. Mexico......

Words: 599 - Pages: 3

The Values Americans Live by

...America, even corporation presidents will engage in physical labor from time to time and gain, rather than lose, respect from others for such action. 10. INFORMALITY If you come from a more formal society, you will likely find Americans to be extremely informal, and will probably feel that they are even disrespectful of those in authority. Americans are one of the most informal and casual people in the world, even when compared to their near relative—the Western European. As one example of this informality, American bosses often urge their employees to call them by their first names and even feel uncomfortable if they are called by the title "Mr." or "Mrs." Dress is another area where American informality will be most noticeable, perhaps even shocking. One can go to a symphony performance, for example, in any large American city nowadays and find some people in the audience dressed in blue jeans and tieless, short-sleeved shirts. Informality is also apparent in American’s greetings. The more formal "How are you?" has largely been replaced with an informal "Hi." This is as likely to be used to one’s superior as to one’s best friend. If you are a highly placed official in your own country, you will probably, at first, find such informality to be very unsettling. American, on the other hand, would consider such informality as a compliment! Certainly it is not intended as an insult and should not be taken as such. 11. DIRECTNESS, OPENNESS AND HONESTY Many other......

Words: 4166 - Pages: 17

Rethinking the Informal Economy

...salaries of the formal sector workers are periodically revised to counter inflation. No such benefits accrue to the large proportion of workers in the unorganised sector. Inspite of growing literature on the informal sector, there are several gaps not only with respect to the data on the size of the sector, but also with respect to the concept and definition of informal sector, characteristics of the sector, its contribution to the national economy and the areas for policy/programme interventions. In fact one can say that a comprehensive understanding of this sector is still eluding us. The following paper aims to provide a comprehensive understanding of the dynamics of the informal sector in India in the post-reform period. Informality in the Labour market- Concepts, Characteristics and Definitions: Concept The informal sector covers a wide range of labour market activities that combine two groups of different nature. On the one hand, the informal sector is formed by the coping behaviour of individuals and families in economic environment where earning opportunities are scarce. On the other hand, the informal sector is a product of rational behaviour of entrepreneurs that desire to escape state regulations. The two types of informal sector activities can be described as follows: Coping strategies (survival activities): casual jobs, temporary jobs, unpaid jobs, subsistence agriculture, multiple job holding; Unofficial earning......

Words: 9126 - Pages: 37

The Values Americans Live by - Kohls

...plan on stopping anytime soon. It is vital to have everyday planned out with a schedule that is full at all times making Americans more productive and happier people, or so this is what they believe. Americans have faith that all men are “created equal” no matter where you are from or what you look like or even how smart you are. They are certain that we all start off the same and through hard work anyone has the opportunity to become the riches man/women on earth or even president. This is proven with many of the societal civic and governmental rights and is one of the most prized values that Americans hold. Kohls describes this as very disturbing to international visitors with strong conviction in class structure. The next value tackled is individualism of the very special American. Most view themselves as exceptional and diverse from everyone else in the same group. They hold a strong Self-help Concept and view this as the model way to achieve success in America. It is very apparent when you walk into any bookstore you find rows upon rows of self-help books, numerous classes on the self, and TV shows based on self-improvement. Competition is the foundation for American free enterprise and what ultimately drives the whole of their economy. It challenges them to work better, stronger and harder. Competition is a driving force in all areas of their life, work and family. They are taught at a very early age the benefits of competition in sports, school......

Words: 1147 - Pages: 5

Assignment

...yet they are often cynical about personas in positions of authority. They love to ridicule authority and people in position of power. For example, the president of the country is said to be the most popular person among the population due to his hilarious way of behaving in different situations. Furthermore, offices in Romania are ruled by formality. Subordinates are rarely allowed to call their supervisors by their first name. The same thing happens in schools too. While in American schools one can find sheer informality, in Romania is exactly the opposite. If the society wants a lower power distance level, someone should take steps to make this exaggerated formality from schools a thing of the past. In addition, even the ways to say HELLO in Romania are bound to follow up certain rules. For example, if you are the secretary you can’t greet the same way your working colleagues and your boss. Greetings are subject to the same strict rules of formality and informality. Some extremely important consequences of a high power distance level are the sudden changes in government and the autocratic / absolutist governments. In days gone by, this has been more than obvious in our country. Let’s think of the 1989 Revolution when the Communist leaders were killed. In this day and age we find a certain polarization of left / right wing parties which is another consequence of a high power distance. If we now summarize, it stands to reason that Romania has a high power distance level....

Words: 1016 - Pages: 5

Soobinggggg

...piece, it could also be said that the piece has a secondary purpose to persuade the audience that moving to France is favourable. The piece is somewhat aimed at young families, as the family interviewed have 2 children, however the piece could realistically appeal to families or individuals of any age range, as the concept of moving to France is certainly not condensed to a singular age group. It could however be said that the piece is aimed at families/individuals of a middle-high income, as it is specified that the family set up a hotel business once they completed the move, suggesting that relocation to France can be an expensive affaire. The register of the piece is formal, however typically of the genre, there are some aspects of informality throughout. The writer includes an array of attributive adjectives such as ‘amazing’, ‘great’ and ‘fantastic’. These have positive connotations relating to the experience that the family are having in France. These lexical choices are generic, and add little literary value to the text, albeit this is conventional of the form of the piece, where families interested in purchasing property are simply trying to gather an opinion of a location, and conveying this opinion through a high frequency lexical choice is more than satisfactory. The writer uses parenthesis to juxtapose ‘winter’ and ‘summer’ in the oxymoronic compound clause ‘(ski holidays in the winter, mountain biking holidays in the summer). This sentence has positive......

Words: 1538 - Pages: 7

Urban Migration and the Informal Sector

...and employment until the second half of the 19th century, after several decades of industrialisation. Looking at Pakistan, the administrative burden of formalizing an employment was already too complex to even be understood by the average worker in 1970, was associated with serious costs and could take up to several months if not years. These causes of informality (namely, higher taxes, price controls) are comparable to the factors that encouraged the development of a black market during World War II (Feige, 1989), proving that a rise of the informal sector is not necessarily a perverse phenomenon, given the administrative and economic context. Likewise, in the 1970s, it was difficult to formalize a seasonal employment in Ghana, or to register more than one profession per person because the law made few, if any, provisions for such an occupation. Considering that many of the workers in Accra travelled seasonally to sell their rural produce in the city, and that migrants have always been accustomed to have more than one income-source to diversify the risk of crop-failure, the Ghanaian law condemns an entire lifestyle to informality (Hart, 1973). Secondly, by considering the informal sector as a burden, and a parasite, governments have promoted policies that reject the informal sector, exclude it from the city, and most of all, prevent it from becoming formal. In fact, the informal sector is primarily defined, at least historically, by its illegality: it is not recognised......

Words: 2480 - Pages: 10

Language and Gender

...This text is a conversation between two workmates aged 19. Linda starts the conversation with an incomplete construction “went to see stereophonics on…” the lack of an opener/greeting and the incomplete construction shows the informality between the two speakers. Linda starting the conversation and initiating the topic suggests that she is in power of the conversation and it supports the theory that women initiate more topics of conversation, in conversations analysed by fisherman- 62% of topics were introduced by women. The second speaker, Ed replies with a question, “where d’you go Manchester or Birmingham” the contraction highlights the informality and it supports the idea that men are less likely to use standard English than men, this is evident throughout Eds language such as the use of “cos.” Linda interrupts him with Birmingham although this interruption usually implies power in the conversation, Linda’s interruptions later on seem to be defensive, an evident example is when Ed tries to explain the mechanics of a car, he uses particular technical lexis, “jacking points” which Linda interrupts with “well no…” or “I have no idea”, this shows her lack of understanding/ Confidence in what he is saying. This presents the difference approach where the man is shown to be more familiar with stereotypically masculine things like cars while the woman is clueless. The difference approach is also evident when Linda tends to emphasise on her personal experience and emotions,......

Words: 614 - Pages: 3

Email

...Dear Supervisor, I have begun to look in to ways to help prepare you for your meeting next week with the Czech company. It is important to pick a day between Monday and Thursday and between 8:30am and 5:30pm as other times are not considered work hours. Also, the Czech’s value punctuality and will find it inappropriate if you are not on time. During the meeting, be sure to address each person with their preferred title and last name. Their use of status titles is important and you should be able to properly spell and pronounce each name. The Czech’s also reserve first names for informality and friendship and it can be seen as offensive if a first name is used before you are invited to. The best thing you can do during the meeting is to exert your knowledge as knowledge and the ability to exert power and authority are seen as qualities worthy of respect and will spark their interest. The first meeting is largely used to make an impression and the following meeting are used to gain trust and develop a friendship. You may find that they might seem indirect at times. Sometimes instead of saying a strict “no” they might say “it will be difficult” or “we will see”. This is intended to avoid confrontation as well as maintain a level of politeness. Please let me know if you have any questions or if there is anything else I can do to help. Sincerely,...

Words: 251 - Pages: 2

Choosing a Country

...With a population of 4.6 billion people the unemployment rate is only at 11.6% which in my opinion is low. (Ireland economy: population, gdp, inflation, business, trade, fdi corruption. (n.d.). This country is highly influenced by Catholic morality. In 2002 88.4% of the population identified as Roman Catholic. It is because of these beliefs that you won’t see a lot of women in the work force. (Traditionandvalues. (n.d.)) The social interactions within this country are one of informality. This is something to look at when you look in to doing business with people from this country. First names are often adopted very quickly in both a professional and business. Having things this way leaves little room for the class restrictions a title may put on one person. Knowing this will also help you know how you can interact with your employees on a management level. You know that you can instruct them and treat them as an equal because that is how they are looking at you. Not only is the informality in the social interaction good for business within an already set up business relationship it can also help break down any communication problems you may run in to. However one communication problem would not be language because the Irish people speak English as the main language of the country. (Culture of Ireland- history,people,clothing,traditions,woman,beliefs,food,customs,family.(n.d.)) Ireland is a country rooted in the Roman Catholic faith it is because of this that I......

Words: 595 - Pages: 3

International Business

...information filter. cultural * Independence: Americans strongly believe in the concept of individualism. They consider themselves to be separate individuals who are in control of their own lives, rather than members of a close-knit, interdependent family, religious group, tribe, nation, or other group. * Equality: The American Declaration of Independence states that “all [people] are created equal,” and this belief is deeply embedded in their cultural values. Americans believe that all people are of equal standing, and are therefore uncomfortable with overt displays of respect such as being bowed to. * Informality: This belief in equality causes Americans to be rather informal in their behavior towards other people. Don’t be surprised if store clerks and waiters introduce themselves by their first names. Many people visiting the US are surprised by the informality of American speech, dress, and posture. Don’t mistake this for rudeness or irreverence; it’s just a part of their culture! * Directnes:  Americans tend to value, frankness and openness in their dealings with other people. They believe that conflicts and disagreements are best solved by means of forthright discussion among the people involved. Americans believe that if someone has a problem with someone else, they should tell the person clearly and directly in order to come up with a solution to the problem. Technology * During World War II, many prominent scientists in the world who went to......

Words: 894 - Pages: 4

Creating a Metodology

...review meetings also increases which leads to more burden on the project managers. The project managers should be be involved in preparing documents for the gate review instead of concentrating on managing the project. This process can lead to loss of time and delayed discussion review meetings. 2.5. Is it best to design an EPM system around flexible or inflexible elements? Generally, when first developing an EPM system, do companies prefer to use formality or informality in the design? Due to the changing nature of clients' needs, an EPM system should be constructed around flexible elements. As project management maturity grows, companies move towards a more informal approach by using forms, guidelines, and templates rather than more firm policies and procedures. Many companies are interested in promoting the freedom so that the project managers could feel comfortable in developing relationship with their clients through informal relationship hence informal approach works best. This trend towards informality allows companies to cater to their client's specific requirements. 2.6. Should an EPM system have the capability of capturing best practices? Yes, an EPM system should capture best practices since clients are emphasizing on the use of best practices in their RFP system. Also,the clients require the best practices to be shared with them before the project deal bond. The task can be achieved by using checklists or forms and templates during the final......

Words: 1285 - Pages: 6

Standard Quality Forms

...world is full of standards, standards regulate simplify and creates uniformity Standards are chosen for different reasons, even if we were to questions why a particular standard was chosen there would be many different and wide ranges of reason why a standard was chosen. Standards simplifies otherwise complicated choices, enables large scale integration and helps to ensure compatibility. Having standards introduces simplicity, lower costs of production and increased competition and standards help stabilize the market and allows for a variety if interoperable products that reduce costs through competition. In the past there were no formal methods for standardization and left to intuition and informalities, but now that software development projects are more complex informalities proved to be the major reasons of failures (Importance of Processes and Standards in Software Development, 2007). Standards can simplify the design and construction of hardware and software and help to ensure compatibility with a wide array of systems. The quality of software, hardware and well defined interfaces and the accepted standards in these areas are essential for building efficient, complex and compatible systems (Genamics, 2011). Data centers with standardized hardware typically have fewer headaches than those working in mishmash environments, especially when it comes to developing new system applications and cloud computing (Hardware Standardization Benefits Cloud Computing and......

Words: 1105 - Pages: 5

Values for Americans

...spend little time honoring the past or even living in the present. Kohls (1988) notes that in some cultures, planning for the future is not only futile; it is considered sinful.   9. Action/Work Orientation People from other countries see Americans as workaholics defined by their jobs. Kohls (1988) warns foreigners that often the first thing Americans will ask you about is what you do for a living. . Another interesting insight that Kohls (1988) shares is that Americans also believe in the dignity of work and one will sometimes see executives engaging in physical labor. 10. Informality Americans are considered very informal in manner and dress and this can lead to some discomfort for foreign visitors. In fact, in some countries, this informality is seen as disrespect. The American value of equality also emphasizes treating everyone the same, which is often with more informality than in another country (Kohls, 1988).  11.  Directness/Openness/Honesty Americans have always preferred the most direct approach possible as they get to the point quickly without much fanfare. In other countries, it is considered polite to say hello and ask how someone is before one starts asking questions. If a visitor finds an American blunt, the burden of adjustment in all cases is on that visitor (Kohls, 1988). 12.  Practicality/Efficiency Americans pride themselves on being pragmatic, and try to remove the emotion from a decision. They want to have a......

Words: 1163 - Pages: 5

Davies

...of 114 items was drawn from a number of literature sources including branding, identity, culture, and corporate reputation. These were reduced to the 49 items in Table 1, through exploratory and confirmatory factor analysis for both image and identity. The five main dimensions were subjected to trait analysis to identify different facets. One advantage in the current context of the Corporate Personality Scale is that it is (the only published scale) validated for the measurement of both image and identity of a corporate brand, thus allowing any gap between the two to be measured. Table 1: Dimensions of The Corporate Personality Scale 13 Facets Agreeableness Competence Enterprise Chic Ruthlessness Machismo Informality 49 Items Warmth Empathy Integrity Conscientiousness Drive Technocracy Modernity Adventure Boldness Elegance Prestige Snobby Egotism Dominance NA NA Cheerful, Pleasant, Open, Straightforward Concerned, Reassuring, Supportive, Agreeable Honest, Sincere, Socially-responsible, Trustworthy Reliable, Secure, Hardworking Ambitious, Achievement-oriented, Leading Technical, Corporate Cool, Trendy, Young Imaginative, Up-to-date, Exciting, Innovative Extrovert, Daring Charming, Stylish, Elegant Prestigious, Exclusive, Refined Snobby, Elitist Arrogant, Aggressive, Selfish Inward-looking, Authoritarian, Controlling Masculine, Tough, Rugged Casual, Simple, Easy-going Source: Davies et al. (2001a) Page 147 ...

Words: 4754 - Pages: 20