Efficiency in a search and matching economy with a competitive informal sector
We consider a dual labor market with a frictional formal sector and a competitive informal sector. We show that the size of the informal sector is generally too large compared to the optimal allocation of the workers. It follows that our results give a rationale to informality-reducing policies. --...
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| Main Author: |
Charlot, Olivier
Malherbet, Franck Ulus, Mustafa |
|---|---|
| Format: | Paper |
| Language: | English |
| Place of publication: |
Bonn IZA 2012 |
| Data of publication: | 2012 |
| Series: |
Discussion paper series |
| Subjects: | |
| Online Access: | available in Bonn? |
| Database: | ECONIS Database information Databases - DBIS |