simulations to understand how trade affects economic outcomes in the presence of informality. We show the following: 1) Trade … openness unambiguously decreases informality in the tradable sector but has ambiguous effects on aggregate informality. 2) The … even when informality is repressed. 4) Repressing informality increases productivity but at the expense of employment and …

, which we define in several ways posing the general question whether the burden of informality falls disproportionately on … employment. Those who quit, in turn, experience voluntary informality for the most part, but there seems a minority of quitting … on workers with low human capital. We also pursue the issue of informality persistence and find that informal employment …

decomposition unveils that the contribution of the flow from informality to unemployment is larger than that of the flow from formal …

This paper studies the impact of informality on the long-run relationship between inflation and unemployment in … developing economies. I present a dynamic general equilibrium model with informality in both labor and goods markets and where … informality when considering the inflation-unemployment trade-off in the conduct of monetary policy. …