D׳Erasmo, Pablo N.; Moscoso Boedo, Hernan J.; Şenkal, … - In: Journal of Economic Dynamics and Control 42 (2014) C, pp. 122-142
The aim of this paper is to quantify the role of formal-sector institutions in shaping the demand for human capital and the level of informality. We propose a firm dynamics model where firms face capital market imperfections and costs of operating in the formal sector. Formal firms have a larger...
