caa a22 4500 445829516 CHVBK 20180317145309.0 cr unu---uuuuu 170323e20110801xx s 000 0 eng 10.1007/s10657-010-9179-6 doi (NATIONALLICENCE)springer-10.1007/s10657-010-9179-6 On the political economy of the informal sector and income redistribution [Elektronische Daten] [Ozan Hatipoglu, Gulenay Ozbek] In this paper we analyze a general equilibrium model in which agents choose to be employed in formal or in the informal sector. The formal sector is taxed to provide income subsidies and the level of redistribution is determined endogenously through majority voting. The model is simulated to produce qualitative results and to illustrate the differences between economies with different distributional features. We show that a distortion in the democratic rule in favor of the rich reduces transfers while the size of the informal sector may remain at high levels. Despite a greater demand for redistribution in societies where the majority has few resources (skills), we find that political systems which work in favor of a rich minority will produce little redistribution. Our results call for pro-poor measures such as free training and education programs that should be offered to those who cannot afford it. Springer Science+Business Media, LLC, 2010 Informal sector nationallicence Income redistribution nationallicence Median voter nationallicence Hatipoglu Ozan Department of Economics, Bosphorus University, Bebek, 34342, Istanbul, Turkey aut Ozbek Gulenay Reform Corporate, Istanbul, Turkey aut European Journal of Law and Economics Springer US; http://www.springer-ny.com 32/1(2011-08-01), 69-87 0929-1261 32:1<69 2011 32 10657 https://doi.org/10.1007/s10657-010-9179-6 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s10657-010-9179-6 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Hatipoglu Ozan Department of Economics, Bosphorus University, Bebek, 34342, Istanbul, Turkey aut NATIONALLICENCE 700 1- Ozbek Gulenay Reform Corporate, Istanbul, Turkey aut NATIONALLICENCE 773 0- European Journal of Law and Economics Springer US; http://www.springer-ny.com 32/1(2011-08-01), 69-87 0929-1261 32:1<69 2011 32 10657 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer