Charlot, Olivier; Malherbet, Franck; Terra, Cristina - In: Journal of Economic Dynamics and Control 51 (2015) C, pp. 1-27
This paper proposes a unified theoretical framework where formal and informal firms coexist and face the same type of product and labor market imperfections: they have monopoly power in the goods market, they are subject to matching frictions in the labor market, and wages are determined by...