A matching model will explain both unemployment and economic growth by considering the underground sector. Three … between underground employment and unemployment, and (iii) between growth and unemployment. The key assumptions adopted are … underground firms, employ unskilled labour, and do not contribute to growth. Underground employment alleviates unemployment only …

informal- and formal-sector output, on the division of the workforce into unemployment, informal-sector employment and formal …

informal- and formal-sector output, on the division of the workforce into unemployment, informal-sector employment and formal …

unemployment in developing economies. I present a monetary dynamic general equilibrium model with search frictions in both labor … rate affects unemployment through two channels: On the one hand, higher inflation reduces the surplus of monetary trades … which lowers firms' profits, job creation and increases unemployment. On the other hand, it shifts firms' hiring decision …

Empirical evidence shows that in a labor market characterized by a severe degree of informality, unemployment insurance … and replacement rate barely affects the unemployment rate. On the other hand, the benefit duration is the key component to … posting of formal firms, which increases unemployment …