Docquier, Frédéric; Müller, Tobias; Naval, Joaquín - Institute for the Study of Labor (IZA) - 2014
quantitative theory to study the dynamic implications of informality on wage inequality, human capital accumulation, child labor … and long-run growth. Our model can generate transitory informality equilibria or informality-induced poverty traps. Its … calibration reveals that the case for the poverty-trap hypothesis is strong: although informality serves to protect low …