Meghir, Costas; Narita, Renata; Robin, Jean-Marc - Departamento de Economia, Faculdade de Economia, … - 2013
existence allows firms to operate in an environment where wage and regulatory costs are lower. On the other hand informality … means that the amount of social protection offered to workers is lower. In this paper we extend the wage-posting framework … of Burdett and Mortensen (1998) to allow for two sectors of employment. Firms are heterogeneous and decide endogenously …
