Informal employment persists, even when the economy is growing. Understanding the phenomenon is necessary to “tame the beast” of informality. Coherent policies are needed to create decent jobs and provide social protection

This paper studies the employment and wage effects of contract staggering, i.e., the staggered nature in which wages adjust to changes in the economic environment. Our analysis is based on a large matched employers employees dataset merged to collective agreements in the Netherlands, a country...