Informality, Saving and Wealth Inequality

Borradores de Economia
Number: 
873
Published: 
Classification JEL: 
E21
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

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The informal sector is an extensive phenomenon in developing countries. While some of its implications have drawn considerable attention in the literature, one relatively unexplored aspect has to do with the saving patterns of workers and rms and how the