This paper investigates the role of risk-aversion in the allocation of workers between formal and informal jobs in Ghana.  In the model I propose risk-averse workers can opt between the free-entry informal sector and queuing for formal occupations.  Conditional on identifying the riskier...

This paper investigates the role of risk-aversion in the allocation of workers between formal and informal jobs in Ghana. In the model I propose, risk-averse workers can opt between the free-entry informal sector and queuing for formal occupations. Conditional on identifying the riskier option,...