's two-step method, while taking both participation and self-employment decisions into account. We use the Hungarian …

-economy business cycles tend to be shallower in advanced economies than in EMDEs. Informal employment in both advanced economies and …

initial formulation assumes an integrated labour market and allows for entrepreneurship, self-employment and wage employment …. We then introduce labour market segmentation. In equilibrium voluntary and involuntary self-employment, formal and … informal wage employment, and formal and informal entrepreneurship may all coexist. We illustrate the model by an example …