Labor market competitiveness and the size of the informal sector

Hideaki Goto, Yukichi Mano

研究成果: Article査読

抄録

This paper formalizes the dynamics of the informal sector with a special emphasis on the levels of labor market competitiveness in the formal and informal sectors. Specifically, it analyzes the effects of improved productivity and higher entry costs into the formal sector on the size of the informal sector for different degrees of competitiveness in the labor markets. We show that when the informal labor market is competitive while the formal labor market is not, lower production technology in the formal sector or a higher entry cost reduces the size of the informal sector in the long run.

本文言語English
ページ(範囲)495-509
ページ数15
ジャーナルJournal of Population Economics
25
2
DOI
出版ステータスPublished - 2012 1

ASJC Scopus subject areas

  • Demography
  • Economics and Econometrics

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