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An equilibrium search model of the informal sector
Author(s)
Date Issued
2006-12
Date Available
2009-03-12T14:13:28Z
Abstract
We 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.
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.
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Series
UCD Centre for Economic Research Working Paper Series
WP06/29
Copyright (Published Version)
UCD School of Economics 2006
Subject – LCSH
Informal sector (Economics)--Mathematical models
Labor market--Mathematical models
Labor market--South Africa
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
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walshf_workpap_022.pdf
Size
186.11 KB
Format
Adobe PDF
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