Fernandez, Andres; Meza, Felipe - In: Review of Economic Dynamics 18 (2015) 2, pp. 381-405
We document how informal employment in Mexico is countercyclical, lags the cycle and is negatively correlated to formal … business cycle when compared to Canada, a developed economy with a much smaller share of informal employment. To account for …. Introducing informal employment into a standard model amplifies the effects of productivity shocks. This is linked to productivity …