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

Borradores de Economia
Number: 
832
Published: 
Classification JEL: 
H21, J64, J65
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy
Download document

The most recent

Impact of demographic change on CO₂ emissions: the role of consumption
Jhorland Ayala-García, Jaime Bonet-Morón, Eduardo A. Haddad, Inácio F. Araújo
Remittances, growth and regional economic convergence: evidence from Colombian departments
Clark Granger, Jhorland Ayala-García, Fabio Montenegro Aparicio
Adaptation to Broken Mitigation: Social and Economic Impacts of Solar Mini-Grid Electrification in Colombian Island
Hans-Erik Edsand, Andrés Aleán-Romero, Jhorland Ayala-García, Tania Jiménez Castilla, Sandra C. Valencia

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