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

Economic Journal, 2009, vol. 119, issue 539, 1105-1129

Abstract: In this article, 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 analyse 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.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (145)

Downloads: (external link)
https://doi.org/10.1111/j.1468-0297.2009.02268.x

Related works:
Journal Article: The Effects of Labour Market Policies in an Economy with an Informal Sector (2009)
Working Paper: The Effects of Labour Market Policies in an Economy with an Informal Sector (2008) 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: https://EconPapers.repec.org/RePEc:wly:econjl:v:119:y:2009:i:539:p:1105-1129

Ordering information: This journal article can be ordered from
http://onlinelibrary ... 1111/(ISSN)1468-0297

Access Statistics for this article

Economic Journal is currently edited by Estelle Cantillon, Martin Cripps, Andrea Galeotti, Morten Ravn, Kjell G. Salvanes, Frederic Vermeulen, Hans-Joachim Voth and Rachel Kranton

More articles in Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2025-03-22
Handle: RePEc:wly:econjl:v:119:y:2009:i:539:p:1105-1129