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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Bibliographic details
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
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