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Informality: Family ties and retirement income

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  • Ozturk Goktuna, Bilge
  • Dayangac, Renginar

Abstract

This paper suggests a demand side analysis of informal employment characterised by incompliances with labour tax regulation, using a general equilibrium model with overlapping generations. A public social insurance provides benefits to formal employees in retirement, while we allow for an informal insurance mechanism for informal employees through a social norm of mutual support. The objective of the paper is to evaluate the impact of auditing policy and social norms on growth and social welfare. We define the private transfer rate to the informal population and provide an analysis on the impact of social norms to wage levels, growth and welfare.

Suggested Citation

  • Ozturk Goktuna, Bilge & Dayangac, Renginar, 2024. "Informality: Family ties and retirement income," Research in Economics, Elsevier, vol. 78(1), pages 73-82.
    • Handle: RePEc:eee:reecon:v:78:y:2024:i:1:p:73-82
    DOI: 10.1016/j.rie.2024.01.004
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    References listed on IDEAS

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