Gibson, Bill; Kelley, Bruce - In: The Manchester School of Economic & Social Studies 62 (1994) 1, pp. 81-96
A major focus of the debate on the informal sector is whether this sector constitutes a 'seedbed of capitalist growth' or simply a reserve army of unemployed. This paper develops a classical model where informal processes may or may not turn formal in the long run. It is further shown that if...