Araujo, Julia P.; Rodrigues, Mauro - In: Economia : revista da ANPEC 17 (2016) 1, pp. 43-55
This paper extends Evans and Jovanovic (1989)'s entrepreneurship model to incorporate the informal sector. Specifically …, entrepreneurs can operate either in the formal sector - in which they have limited access to credit markets and must pay taxes - or … induces entrepreneurs to switch to the formal sector, where the technology is superior. Most of this effect comes from …