Many informal firms in developing countries would not be viable if they were to comply with the minimum wage law. This means the authorities have an incentive to turn a blind eye to nonenforcement in a substantial share of firms. We also survey enforcement mechanisms for the minimum wage across...

We estimate the wage penalty associated with working in the South African informal sector. To this end we use a rich data set on non-self employed males that allows one to accurately distinguish workers employed in the informal sector from those employed in the formal sector and link individuals...

This article examines the effects of fostering on children's labour supply and schooling in host families in Niger. The focus is on the causal role of ethnic inherited cultural values and behaviours in perpetuating fostering. In particular, at the ethnic group level, we rely on the inherited...

The paper aims to theoretically analyze the impact of an increase in the access to education on employment flows of a labor market representative of a developing economy. We develop a search-matching model of a dual labor market where the formal sector is reserved for educated and...

We develop a model where workers may enter self-employment or search for jobs as employees and where there is heterogeneity across workers’ managerial ability. Workers with higher skills will manage larger firms while workers with low managerial ability will run smaller firms and will be in...

We estimate the impact of internal migration on local labour markets in Thailand. Using an instrumental variable approach based on weather and distance we estimate an exogenous measure of the net migration inflow into each region. Our results show that instrumenting for the possible endogeneity...