We analyze for the first time the welfare effects of unemployment benefits (UBs) in a context of high informality …

Empirical evidence shows that in a labor market characterized by a severe degree of informality, unemployment insurance … model that incorporates informality in an incomplete markets framework to analyze the impact of changing (UI) components. In … while working in informality. We find that increasing the benefit eligibility criteria fosters employment while the duration …

decomposition unveils that the contribution of the flow from informality to unemployment is larger than that of the flow from formal …

frictions model with informality, (ex post) heterogeneous workers, and conditional taxes and transfers. In the model, formal … informality is quite inelastic due to frictions, and due to the opposing forces of taxes and transfers. …

literature using search models to study labor market informality: should informal self-employment and informal employment as … equality between the two states, cautioning against aggregating them in a common "informality state." The parametric model …