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. --...
|Place of publication:||
Bonn IZA 2012
|Data of publication:||2012|
Discussion paper series
|Online Access:||available in Bonn?|
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