Bargain, Olivier; El Badaoui, Eliane; Kwenda, Prudence; … - 2012
We develop a model where formal sector firms pay tax and informal ones do not, but informal firms risk incurring the … when they cannot find a salary job. For these workers self-employment is a secondary/informal form of employment. The … informal wage penalty does appear to be limited to low wage/skill workers while firm size is an important determinant of the …