This paper develops a four-sector equilibrium search and matching model with informal sector employment opportunities and educational choice. We show that underground activities reduce educational attainments if informal employment opportunities mainly are available for low-educated workers. A...

While examining the macroeconomic effects of increased government control of the informal sector, this paper develops a two-sector general equilibrium model featuring matching frictions, and heterogeneous workers in terms of moral. This facilitates an analysis of how wage setting and...

While examining the macroeconomic effects of increased government control of the informal sector, this paper develops a two-sector general equilibrium model featuring matching frictions on the labour market and a social norm. Conducting informal work, or employing a worker infor- mally, is...

While examining the macroeconomic effects of increased government <p> control of the informal sector, this paper develops a two-sector general <p> equilibrium model featuring matching frictions on the labour market and <p> a social norm. Conducting informal work, or employing a worker infor- <p> mally, is...</p></p></p></p>