Efficiency in a Search and Matching Economy with a Competitive Informal Sector

We consider a dual labor market with a frictional formal sector and a competitive informal sector. We show that the size of the informal sector is generally too large compared to the optimal allocation of the workers. It follows that our results give a rationale to informality-reducing policies

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Year of publication:	2012
Authors:	Charlot, Olivier
Other Persons:	Malherbet, Franck (contributor) ; Ulus, Mustafa (contributor)
Publisher:	[2012]: [S.l.] : SSRN
Subject:	Informelle Wirtschaft \| Informal economy \| Matching \| Theorie \| Theory \| Allokationseffizienz \| Allocative efficiency \| Arbeitsmarktsegmentation \| Labour market segmentation

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