Marjit, Sugata; Kar, Saibal; Sarkar, Punyabrata - In: South Asia Economic Journal 5 (2004) 2, pp. 261-266
We conduct two policy experiments in a general equilibrium framework with an informal sector. The first deals with a liberal trade policy and the second with a decline in the unionized wage rate. In both cases, informal workers gain if capital moves between the formal and the informal segments...