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Table 2 Comparing moments in the model and the data

From: The effect of payroll taxes on employment and wages under high labor informality

Moment Data Model
Establishment size and employment distributions
Mean size sector 1 10.14 10.11
Mean size sector 2 6.15 6.18
Mean size, +50 sector 1 174.21 174.05
Mean size, +50 sector 2 191.89 191.25
Employment share, +50 in sector 2 0.27 0.21
Informality
Share of own-account in sector 1 0.34 0.34
Share of own-account in sector 2 0.38 0.39
Share of informal salaried workers 0.39 0.40
Other Aggregates
VAT Revenue/GDP 0.057 0.057
Potential VAT Revenue/GDP 0.077 0.077
NCSI subsidies/GDP 0.016 0.016
  1. Notes: Mean size is the average number of workers per establishment, excluding the own-account. “Employment share, +50 in sector 2” is the fraction of workers (excluding the own-account) in that sector that performs activities in establishments with more than 50 workers. The “share of own-account in sector j” is the fraction of own-account workers in that sector. “Potential VAT revenue” assumes that all establishments (excluding the own-account) in sector 2 pay the VAT fully.