Labour market segmentation in developing countries has been considered in a growing literature, some of which suggests an informal sector wage premium. However, such studies have mainly focused on urban labour markets and have not discriminated between the informally self-employed and wage...

Labour market segmentation in developing countries has been considered in a growing literature, some of which suggests an informal sector wage premium. However, such studies have mainly focused on urban labour markets and have not discriminated between the informally self-employed and wage...

While the informal sector has received widespread attention in academic and policy arenas in recent decades, knowledge gaps and controversies remain. By examining the incidence and determinants of the formal-informal sector earnings gap for adult male dependent employees using two identical,...

This article studies minimum wage non-compliance in Honduras, a dual labor market with high wage floors that are weakly enforced. However, rather than just counting how many workers earn sub-minimum wages, it also estimates violation indices that measure compliance at the intensive margin. I...

We analyse the question of optimal taxation in a dual economy, when the government is concerned about the distribution of labour income. Income inequality is caused by the presence of sunk capital investments, which creates a good jobs sector due to the capture of quasi-rents by trade unions. We...

This research extends simple two-sector models in order to inquire the impact of the extent of coverage or enforcement of minimum wage legislation in one of the sectors on the equilibrium outcome. Two versions of institutional wage avoidance are presented. They may be seen as representing...

The paper contrasts the pattern of returns to human capital in different economic sectors. As job mobility, especially across sectors, is limited, it is argued that coefficients of experience in earnings regressions may capture or be interpreted as the growth rate - net of depreciation - of...

This research extends simple two-sector models in order to inquire the impact of the extent of coverage or enforcement of minimum wage legislation in one of the sectors on the equilibrium outcome. Two versions of institutional wage avoidance are presented. They may be seen as representing...

In 2012, a labour market reform in Italy known as the Fornero Law substantially reduced firing restrictions for open-ended contracts in the case of firms with more than 15 employees. The results from a difference in regression discontinuities design that compares firms below versus those above...

Labour market segmentation currently is at the forefront of national and European policy debates. While the European Commission and the OECD try to promote what they see as more inclusive policies, academic observers remain skeptical. Particularly the dualisation literature points to stable...