. Members of formal sectors confront different sets of transformation and transaction costs than do members of informal sectors …, unrecorded and informal economies and examines the conceptual and empirical linkages among them. Alternative micro and macro …

In most developing nations, formal workers tend to be more experienced and educated than informal workers, a fact often … interpreted as evidence that low-skill workers face barriers to entry into the formal sector. Yet, there exists little direct … between workers across sectors even though labor markets are perfectly competitive. In equilibrium, the informal sector …