frictions model with informality, (ex post) heterogeneous workers, and conditional taxes and transfers. In the model, formal … informality is quite inelastic due to frictions, and due to the opposing forces of taxes and transfers. …

affected by the presence of informality and how such distortions have an impact on aggregate variables. The authors in this … informality that is increasing with firm size: reducing informality entails a tradeoff because there are some distortions … show that, in general, reducing informality brings gains. In conclusion, substantial progress has been made in …

includes informality as an indicator of labor underutilization. We find that both measures of NAIRU and the associated labor … informality seems to predict inflationary pressures more accurately when the unemployment gap is close to zero. …

We analyze the joint impact of employment protection and informality on macroeconomic volatility and the propagation of … particular to business cycle moments for employment and informality obtained from our own calculations with the ENOE survey for … formal sector, are key to obtain a counter-cyclical informality rate. In our model both the economy without an informal …