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Do Nations Combine O-Rings with Cobb-Douglas? Evidence from agriculture, equipment production, and the informal sector

  • Oasis, Kodila-Tedika

The article focuses on the conditional relationship between various human capital proxies and the size of potential “O-Ring” or “Cobb-Douglas” sectors. We find that that years of schooling are a robust negative predictor of the size of the informal sector, conditioned on national average test scores, suggests that the signaling and acculturation mechanisms of schooling may help shift potentially productive workers into the formal economy.

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File URL: http://mpra.ub.uni-muenchen.de/51347/1/MPRA_paper_51347.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 51347.

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Date of creation: 09 Nov 2013
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Handle: RePEc:pra:mprapa:51347
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  1. Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, . "The Quality of Government," Working Paper 19452, Harvard University OpenScholar.
  2. Kodila-Tedika, Oasis, 2013. "Forget your gods: African evidence on the relation between state capacity and cognitive ability of leading politicians," MPRA Paper 46449, University Library of Munich, Germany.
  3. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
  4. Isaac Kalonda-Kanyama & Oasis Kodila-Tedika, 2012. "Quality of Institutions: Does Intelligence Matter?," Working Papers 308, Economic Research Southern Africa.
  5. Jones, Garett, 2013. "The O-ring sector and the Foolproof sector: An explanation for skill externalities," Journal of Economic Behavior & Organization, Elsevier, vol. 85(C), pages 1-10.
  6. Kodila-Tedika, Oasis, 2012. "Governance and Intelligence: Empirical Analysis from African Data," MPRA Paper 39937, University Library of Munich, Germany.
  7. Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August.
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