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

Número: 
832
Publicado: 
Clasificación JEL: 
H21, J64, J65
Palabras clave: 
efficiency, Informal Sector, Hidden Search Effort

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Lina Fernanda Torres-Gutierrez, Gonzalo Ossa-Stipcianos, Edwin Mauricio Parra-Rodriguez, Egberto Alexander Riveros, Alvaro José Martinez-Monroy, Julián Andrés Gomez-Duran, Juan Sebastián Rojas-Moreno

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