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- W3123793387 abstract "In this paper, we build an equilibrium search and matching model of an economy with an informal sector. Our model extends Mortensen and Pissarides (1994) by allowing for ex ante worker heterogeneity with respect to formal-sector productivity. We use the model to analyze the effects of labour market policy on informal-sector and formal sector output, on the division of the workforce into unemployment, informal-sector employment and formal-sector employment, and on wages. Finally, we examine the distributional implications of labour market policy; specifically, we analyse how labour market policy affects the distributions of wages and productivities across formal-sector matches. Keywords: Informality and Labour Market Policy" @default.
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- W3123793387 date "2006-06-06" @default.
- W3123793387 modified "2023-09-27" @default.
- W3123793387 title "The Effects of Labor Market Policies in an Economy with an Informal Sector" @default.
- W3123793387 hasPublicationYear "2006" @default.
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