EconPapers    
Economics at your fingertips  
 

The Effects of Labour Market Policies in an Economy with an Informal Sector

James Albrecht (), Lucas Navarro and Susan Vroman ()

ILADES-Georgetown University Working Papers from Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines

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

JEL-codes: E26 J64 O17 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-dge, nep-lab, nep-ltv and nep-mac
Date: 2008-09
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://fen.uahurtado.cl/wp-content/uploads/2010/07/inv208.pdf (application/pdf)

Related works:
Journal Article: The Effects of Labour Market Policies in an Economy with an Informal Sector (2009) Downloads
Working Paper: The Effects of Labor Market Policies in an Economy with an Informal Sector (2006) Downloads
Working Paper: The Effects of Labor Market Policies in an Economy with an Informal Sector (2006) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ila:ilades:inv208

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in ILADES-Georgetown University Working Papers from Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines
Contact information at EDIRC.
Series data maintained by Marcela Perticara ().

 
Page updated 2014-12-17
Handle: RePEc:ila:ilades:inv208