Resurgence of informal economy in the US amidst of automation
A continuous decline in the number of informal economies in the advanced economy has been boosted across the globe by various institutions such as IMF (International Monetary Fund). But a resurrection of the informal economy is being witnessed in the United States (US) with a 102% jump from 1990 to...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2024-03-01
|
| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1735.pdf
|
| Summary: | A continuous decline in the number of informal economies in the advanced economy has
been boosted across the globe by various institutions such as IMF (International Monetary Fund).
But a resurrection of the informal economy is being witnessed in the United States (US) with a 102%
jump from 1990 to 2018. Over the years technological advancement has impacted the involvement
of labour in the production process, with rapid automation in the last three decades this involvement
has been reduced a to minimalistic level. In this paper, we tried to build a narrative to explain this
resurgence of the informal market in the US. Through our theoretical framework, we commented on
how unemployed graduates and the informal economy are associated with automation. The result
showed that both variables were positively associated with automation which was confirmatory of
the theory put forward. Lastly, we also comment on income inequality and automation which were
also positively related. |
|---|---|
| ISSN: | 1841-8678 1844-0029 |