quantitative theory to study the dynamic implications of informality on wage inequality, human capital accumulation, child labor … and long-run growth. Our model can generate transitory informality equilibria or informality-induced poverty traps. Its … calibration reveals that the case for the poverty-trap hypothesis is strong: although informality serves to protect low …

Developing countries have long been struggling to fight informality, focusing on instruments such as labor legislation …’s schooling and skill level may be more effective in reducing informality in the long term. Higher-skilled workers are typically … informality. …

This paper studies the incidence and heterogeneity of labour informality in six Latin American countries … job and, within informality, the chance of better wages. …