Informal Sector

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  • Optimal Policy with Informal Sector and Endogenous Savings

    Publicación |

    This paper analyzes the effect of social security and lump sum layoff payment in an economy with an informal sector and savings, where the search effort is unobserved. I characterize the optimal consumption/search/non-participant strategy assuming that workers are risk averse and that formal…

  • The Efficiency of the Informal Sector on the Search and Matching Framework

    Publicación |

    This paper analyzes efficiency in an economy with an informal sector that consists of unregulated self-employment, and where there are no costs of being informal, (Albrecht et al. (2009)). First, assuming workers in the formal sector are ex-ante heterogeneous, I show that this type of economy is…

  • The Search and Matching Equilibrium in an Economy with an Informal Sector: A Positive Analysis of Labor Market Policies

    Publicación |

    This paper contributes to the theoretical analysis of the informal sector in the search and matching framework. Building upon the work of Albrecht et al. (2009), where the informal sector consists of unregulated self-employment, I describe the search and matching equilibrium in an economy with…