We use an equilibrium search framework to model a formal- informal sector labour market where the informal sector arises endogenously. In our model large firms will be in the formal sector and pay a wage premium, while small firms are characterised by low wages and tend to be in the informal...

In this paper we challenge the traditional labour market view, which argues that unemployment is determined in the long-term by its equilibrium rate, which in turn is affected by permanent shocks of some exogenous variables. In our empirical approach we decompose the dynamics of employment and...

Conventional wisdom suggests that nominal, demand-side shocks have only temporary effects on real macroeconomic magnitudes and that the duration of their effects depends on the degree of nominal inertia. It is also argued that, in the absence of unit roots, temporary supply-side shocks also have...

The aim of this paper is to analyze and estimate salient characteristics of unemployment dynamics. Movements in unemployment are viewed as "chain reactions" of responses to labour market shocks, working their way through systems of interacting lagged adjustment processes. In the context of...

We consider the dynamic relationship between product market entry regulation and equilibrium unemployment. The main theoretical contribution is combining a job matching model with monopolistic competition in the goods market and individual bargaining. We calibrate the model to US data and...

Uno de los temas que mayor controversia ha generado en los últimos años, es en qué medida una economía de mercado es más eficiente para impulsar el crecimiento y el bienestar de la población, frente a economías con menor libertad económica. Este tema ha sido estudiado en varios trabajos,...

Dadas las condiciones de pobreza, los problemas de ingreso y las condiciones de inserción al mercado laboral en Bolivia, se requiere tratar el problema del desempleo desde una óptica donde las necesidades del hogar sean las que reflejen las restricciones presupuestarias y, al mismo tiempo,...

El crecimiento de la economía boliviana, en los últimos cincuenta años, refleja un virtual estancamiento en las condiciones de vida de la población. A pesar de los esfuerzos realizados, la pobreza castiga a la mitad de la población boliviana. Recientes trabajos dan cuenta que la principal...

The paper aims at comparing the formal and informal labour markets in the Central and Eastern European new EU Member States and candidate countries of the European Union. First, the current situation of the labour market is described, focusing on the recent developments since the breaking up of...