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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
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
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
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
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
firms with varying levels of productivity. For example, in case of firms with relatively high levels of productivity …, enforcement has to be stricter than in the case with relatively low productivity firms. Taxing the more productive seems to be the …
Persistent link: https://www.econbiz.de/10009422227
In many developing economies rate of unemployment is increasing with skill accumulation and thereby leading to underemployment. Our paper offers to look at skill formation as a demand side problem not as a traditional supply side problem and also how skill formation or education affects...
Persistent link: https://www.econbiz.de/10012612938
Worker participation in decision-making is often associated with high-wage and high-productivity firm strategies. Using … further increases after the introduction. Importantly, we corroborate previous studies by showing positive productivity and …
Persistent link: https://www.econbiz.de/10012242659
firm heterogeneity to wage inequality. Inspired by sorting theory, we infer firm productivity from estimating firm …-level production functions, taking into account that worker ability and firm productivity may interact at the match level. Using German …, driven by new matches between low-productivity firms and low-ability workers. At the top, sorting decreases, reflected in …
Persistent link: https://www.econbiz.de/10012159531
bargaining agreements works councils are more likely to be engaged in productivity enhancing activities and less engaged in rent … empirical analysis confirms this hypothesis. The presence of works councils exerts a positive impact on productivity within the …
Persistent link: https://www.econbiz.de/10011402748