Lambert, Frederic; Pescatori, Andrea; Toscani, Frederik - 2020
Labor market informality is a pervasive feature of most developing economies. Motivated by the empirical regularity … that the labor informality rate falls with GDP per capita, both at business cycle frequency and in a cross-section of … countries, and that the Okun's coefficient falls with the level of labor informality, we build a small open-economy dynamic …
