In a setting with a low level of anonymous trust and without an effective shadow of courts, the possibility to return a low quality good can work as a simple mechanism to overcome moral hazard in buyer seller transactions. Informal firms – in contrast to formal ones – operate in the hidden...

The impact of globalization on poverty is a matter of keen debate but empirical work in this area has been dominated by cross-country regressions. This paper attempts to link the more macro impacts of globalization, particularly as manifested through the impact on employment, with the micro...