Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.14365/5564
Title: The effect of informality on profit rates: the role of feminization of labor
Authors: Elveren, Adem Yavuz
Elgin, Ceyhun
Tongur, Ünal
Keywords: Informal economy
informality
feminization of labor
profit rate
profit share
panel data
simulation
B54
C23
E12
E26
E27
H26
Growth
Globalization
Inequality
Policy
Publisher: Routledge Journals, Taylor & Francis Ltd
Abstract: This paper explores the intricate dynamics among the informal economy, profit rates, and the feminization of labor. While extensive literature has delved into the causes and consequences of the informal economy, a notable gap exists in understanding its impact on profit rates-an essential indicator of a capitalist economy's health. The preference of certain firms to operate informally enables them to reduce costs, enhance competitiveness, and diminish union influence, ultimately boosting profitability. The paper proposes and tests the hypothesis that the informal sector's presence is linked to higher profit rates. Methodologically, the study introduces a Post-Keynesian model that incorporates gender-specific marginal propensities to consume, followed by a simulation analysis. Subsequently, an econometric model is employed, utilizing data from 127 countries spanning 1991-2018. Results from both simulation and panel data analysis robustly indicate a significant association between the informal sector and increased profit rates. This phenomenon is attributed to the feminization of labor, suggesting a role in cost reduction.
URI: https://doi.org/10.1080/01603477.2024.2394067
https://hdl.handle.net/20.500.14365/5564
ISSN: 0160-3477
1557-7821
Appears in Collections:Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection
WoS İndeksli Yayınlar Koleksiyonu / WoS Indexed Publications Collection

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