Barbier-Gauchard, Amélie; Palma, Francesco De; Diana, … - Bureau d'Économie Théorique et Appliquée (BETA), … - 2013
We consider a heterogenous labor market in a two-country monetary union. The domestic economy is characterized by a dual labor market with formal and informal sectors as observed in most Southern EMU economies. Among formal workers, wage-levels result from eciency considerations. In the foreign...