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Labor Earnings Dynamics in a Developing Economy with a Large Informal Sector
B. P. Gomes, Diego - 2020
We study labor earnings dynamics in a developing economy with a large informal sector. We use nationally representative Brazilian panel data that cover both formal and informal workers. We document large disparities in earnings fluctuations faced by these segments of the labor market, as well as...
Persistent link: https://www.econbiz.de/10012852838
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Informal sector misallocation
Lopez-Martin, Bernabe - 2016
A quantitative framework of firm dynamics is developed where the size of the informal sector is determined by financial constraints and the burden of taxation. Improving access to credit for formal sector firms increases aggregate TFP and output while reducing the size of the informal sector....
Persistent link: https://www.econbiz.de/10011489988
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The gender productivity gap : evidence from the Indian informal sector
Gang, Ira N.; Raj, Rajesh S. N.; Sen, Kunal; Yun, Myeong-Su - 2021
We examine the patterns and correlates of the productivity gap between male-owned and female-owned firms for informal … productivity gaps observed at the lower end of the productivity distribution. Using decomposition methods, we find that about 73 … per cent of the productivity gap can be explained by structural effect, with the remainder being due to differences in …
Persistent link: https://www.econbiz.de/10012798554
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The informal sector in contemporary models of the aggregate economy
Leal, Julio - 2014
I review a contemporary branch of the informal sector literature that focus on understanding the way firm behavior is affected by the presence of informality and how such distortions have an impact on aggregate variables. The authors in this group all make use of dynamic general equilibrium...
Persistent link: https://www.econbiz.de/10010437139
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The formal sector wage premium and firm size for self-employed workers
Bargain, Olivier; El Badaoui, Eliane; Kwenda, Prudence; … - 2012
We develop a model where formal sector firms pay tax and informal ones do not, but informal firms risk incurring the penalty associated with non-compliance. Workers may enter self-employment or search for jobs as employees. Workers with higher managerial skills will run larger firms while...
Persistent link: https://www.econbiz.de/10009548123
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The formal sector wage premium and firm size for self-employed workers
Bargain, Olivier; El Badaoui, Eliane; Kwenda, Prudence; … - 2013
We develop a model where workers may enter self-employment or search for jobs as employees and where there is heterogeneity across workers’ managerial ability. Workers with higher skills will manage larger firms while workers with low managerial ability will run smaller firms and will be in...
Persistent link: https://www.econbiz.de/10010196921
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The formal sector wage premium and firm size for self-employed workers
Bargain, Olivier; El Badaoui, Eliane; Kwenda, Prudence; … - 2012
We develop a model where workers may enter self-employment or search for jobs as employees and where there is heterogeneity across workers' managerial ability. Workers with higher skills will manage larger firms while workers with low managerial ability will run smaller firms and will be in...
Persistent link: https://www.econbiz.de/10009733108
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The Formal Sector Wage Premium and Firm Size for Self-Employed Workers
Bargain, Olivier - 2012
We develop a model where formal sector firms pay tax and informal ones do not, but informal firms risk incurring the penalty associated with non-compliance. Workers may enter self-employment or search for jobs as employees. Workers with higher managerial skills will run larger firms while...
Persistent link: https://www.econbiz.de/10013104959
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The Urban Informal Sector and Poverty : Effects of Trade Reform and Capital Mobility in India
Marjit, Sugata; Kar, Saibal - 2018
Studies on formal-informal interactions in the labor markets of developing countries claim that economic reform increases the level of informal activity. Although the extent of such claims differs across countries, it is generally believed that reform is likely to depress informal wage by...
Persistent link: https://www.econbiz.de/10014052354
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Wages and informality in developing countries
Meghir, Costas; Narita, Renata; Robin, Jean-Marc - 2012
It is often argued that informal labor markets in developing countries promote growth by reducing the impact of regulation. On the other hand informality may reduce the amount of social protection offered to workers. We extend the wage-posting framework of Burdett and Mortensen (1998) to allow...
Persistent link: https://www.econbiz.de/10009627561