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This paper studies the interactions between the structure of product demand, relative wages, and the allocation of economic activity across two sectors. The agrarian sector produces a homogeneous good and consists of informal firms employing adults and children. The modern sector produces a...
Persistent link: https://www.econbiz.de/10010277363
features labor and capital market segmentation, and it is calibrated to replicate the saving rates, wealth inequality and …
Persistent link: https://www.econbiz.de/10011290050
affected by the presence of informality and how such distortions have an impact on aggregate variables. The authors in this … informality that is increasing with firm size: reducing informality entails a tradeoff because there are some distortions … show that, in general, reducing informality brings gains. In conclusion, substantial progress has been made in …
Persistent link: https://www.econbiz.de/10010437139
We argue that societies sometimes choose not to enforce the law to gain “flexibility”. Especially developing countries face a dilemma between discretion and commitment to only partially-contingent rules. Rules are good for incentives, but discretion may be more “flexible”. We embed this...
Persistent link: https://www.econbiz.de/10012025200
Pension reforms, which imply a reduction in the generosity of pension benefits, are becoming widespread in response to the demographic transition. The scale, the timing, and the pace of these reforms vary across countries. In this theoretical article, authors analyse individual migration...
Persistent link: https://www.econbiz.de/10012906509
by these segments of the labor market, as well as the high frequency of transitions between them. Informality is …
Persistent link: https://www.econbiz.de/10012852838
the level of informality. We propose a firm dynamics model where firms face capital market imperfections and costs of …
Persistent link: https://www.econbiz.de/10013056102
results give a rationale to informality-reducing policies. …
Persistent link: https://www.econbiz.de/10010290000
frictions model with informality, (ex post) heterogeneous workers, and conditional taxes and transfers. In the model, formal … informality is quite inelastic due to frictions, and due to the opposing forces of taxes and transfers. …
Persistent link: https://www.econbiz.de/10010459828
includes informality as an indicator of labor underutilization. We find that both measures of NAIRU and the associated labor … informality seems to predict inflationary pressures more accurately when the unemployment gap is close to zero. …
Persistent link: https://www.econbiz.de/10012240303