In many countries, especially poor countries, a heavy burden of taxes, fees, bureaucratic hassles, and bribes drives many producers into an informal sector. This paper shows that we can attribute the existence of a large informal sector to the fact that, because productive endowments contain...

This study investigates the effects of Federal minimum wage policy on mini-mum wage employment, aggregate employment, and average wage rates. The theoretical analysis focuses on the possible effect of the Federal minimum wage in constraining wages and employment in a subset of labor markets, on...