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This paper analyses the emergence of the informal economy in the environment characterised by non-competitive labour markets with wage bargaining. We develop a simple extension of the standard search model à la Pissarides (2000) with formal and informal sectors to show how a government's...
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In this paper, I study the political rationale for labor market regulation. Oligopolists employ raw labor and human … less competition from outside. Then, the fall of income due to wage increases is reduced and labor market regulation …
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