An equilibrium search model of the informal sector

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Title: An equilibrium search model of the informal sector
Authors: Badaoui, Eliane
Strobl, Eric
Walsh, Frank
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Date: Dec-2006
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.
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Copyright (published version): UCD School of Economics 2006
Subject LCSH: Informal sector (Economics)--Mathematical models
Labor market--Mathematical models
Labor market--South Africa
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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