Lisi, G. - In: Journal of the New Economic Association (2011) 9, pp. 33-46
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 …