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population. This study uncovers the effect of poor water infrastructure on the productivity of informal firms. This is achieved … standard deviation of the total duration of water shortages in a month can lead to annual average losses of about 14.5 percent … of the monthly sales per worker for the average informal firm in the sample that uses water for business activities …
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We present a three-sector general equilibrium model with an informal sector, which produces an intermediary for the formal sector, to analyze the effects of different policies on the pollution level and welfare of the economy. The informal manufacturing sector creates pollution and higher the...
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This paper employs recently developed econometric models of marginal treatment effects to analyze the relevance of labor market comparative advantage and segmentation in the participation and earnings performance of workers in formal and informal jobs in Argentina. A novel household data set on...
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There are two divergent perspectives on the impact of subcontracting on firms in the informal sector. According to the benign view, formal sector firms prefer linkages with relatively modern firms in the informal sector, and subcontracting enables capital accumulation and technological...
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Various studies found wage gaps between formal and informal sector workers even after controlling for a number of individual and firm level characteristics. It has also been shown that earnings differentials across these sectors are quite stable over the years. While there is limited amount of...
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