the choice between formal and informal employment and between selfemployment and wage employment. We depart from the most … coverage by social security contributions, primarily, contributions to the Pension Fund. We find that types of employment … the formal sector workers. Neither, risk preferences unambiguously determine the self-employment status. Wage and salaried …

This paper develops a search and matching model of equilibrium unemployment, with on-the-job search, extended to both … the informal sector and entrepreneurship. Three are the key features of this model: the entrepreneurial ability affects … large, an increase in labour market tightness increases the unemployment rate and then the ‘vacancies-unemployment …