quantitative theory to study the dynamic implications of informality on wage inequality, human capital accumulation, child labor … path. Hence, we examine the effectiveness of different development policies to exit the poverty trap. Our numerical … time horizons, or as the economy gets closer to the poverty trap threshold, combining means-tested education and wage …

, as we explain below. Finally, the relationship between remittances and inequality appears to be non …-monotonic: remittances seem to decrease economic inequality in communities with a long migration tradition but to increase inequality within …