We investigate the effects of inequality in wealth on the incentives to contribute to a public good when agents are … generated by purely selfish agents. But introducing inequality motivates more productive agents to exert higher efforts and help … disadvantageous inequality. Moreover, the more inequity averse the agents, the more inequality should be imposed even by an …

quantitative theory to study the dynamic implications of informality on wage inequality, human capital accumulation, child labor … and long-run growth. Our model can generate transitory informality equilibria or informality-induced poverty traps. Its … calibration reveals that the case for the poverty-trap hypothesis is strong: although informality serves to protect low …

informal jobs in Argentina. A novel household data set on informality and self-employment and information on labor inspections …