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

Luz Adriana
Flórez
Martes, 1 Julio 2014

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 heterogen