This paper studies the characteristics of the workers in the informal economy and whether migrants treat this sector as a temporary location before moving on to the organised or formal sector to improve their life time income and life style. We limit our study to the Indian urban...

The workhorse of urban labor theory in development economics is the formal/informal model of labor market segmentation and its variants. The seminal Harris-Todaro model has been extended over the years to cope with various empirical puzzles not explained in the original framework. However, one...

It has been recently argued that the informal sector of the labor market in a developing economy shows a dual structure with one part of it being competitive to the formal sector and another part being the result of market segmentation. To test this hypothesis we formulate an econometric model...

Informality often arises from disincentives associated with high taxes and a restrictive regulatory framework in both labour and product markets. About 20% of the Chilean population aged 15 years and above and working at least 20 hours per week did not have a formal labour contract in 2006. At...

This study provides evidence on the preferences for informal employment among young adults in Colombia. While labor informality has usually been associated to its excluding nature, much of the recent literature has emphasized that individuals may actively choose to work in this sector. There are...

This work suggests a development of the seminal model of transition from lan to market economy by Aghion and Blanchard (1994). We introduce an informal sector to show that its presence can generate qualitatively different steady states, to which the economy converges in the end of transition....