An Equilibrium Search Model of the Informal Sector
AbstractWe use an equilibrium search framework to model a formal- informal sector labour market where the informal sector arises endogenously. In our model large firms will be in the formal sector and pay a wage premium, while small firms are characterised by low wages and tend to be in the informal sector. Using data from the South African labour force survey we illustrate that the data is consistent with these predictions.
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Bibliographic InfoPaper provided by School Of Economics, University College Dublin in its series Working Papers with number 200629.
Length: 35 pages
Date of creation: 17 Dec 2006
Date of revision:
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- El Badaoui, Eliane & Strobl, Eric & Walsh, Frank, 2007.
"Is There an Informal Employment Wage Penalty? Evidence from South Africa,"
IZA Discussion Papers
3151, Institute for the Study of Labor (IZA).
- Eliane El Badaoui & Eric Strobl & Frank Walsh, 2008. "Is There an Informal Employment Wage Penalty? Evidence from South Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 683-710.
- Batini, Nicoletta & Kim, Young-Bae & Levine, Paul & Lotti, Emanuela, 2011.
"Informal Labour and Credit Markets: A Survey,"
11/94, National Institute of Public Finance and Policy.
- Nicoletta Batini & Young-Bae Kim & Paul Levine & Emanuela Lotti, 2009. "Informal Labour and Credit Markets: A Survey," School of Economics Discussion Papers 0609, School of Economics, University of Surrey.
- Paul Levine & Emanuela Lotti & Nicoletta Batini & Young-Bae Kim, 2010. "Informal Labour and Credit Markets: A Survey," IMF Working Papers 10/42, International Monetary Fund.
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