Investigaciones
BIAS Towards Involvement in the Informal Economy

Many countries have fought with economic informality for decades. The failure of eradicating it is typically attributed to high levels of corruption, low income, and people’s general bad view on how well their taxes are spent. However, when economies stay informal for long periods of time, another problem arises: that individuals themselves don’t have an accurate perception of the extent of their own involvement. This misperception was detected through a survey in 223 paraguayan students using non parametric methods. Socioeconomic status and area of study were also found to have a significant effect on this biased judgement.