Fiess, Norbert M.; Fugazza, Marco; Maloney, William F. - In: Journal of Development Economics 91 (2010) 2, pp. 211-226
Informal self-employment is a major source of employment in developing countries. Its cyclical behavior is important to our understanding of the functioning of LDC labor markets, but turns out to be surprisingly complex. We develop a flexible model with two sectors: a formal salaried (tradable)...