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| Title: | | Labour markets and productivity in developing countries  |
| Authors: | | Satchi, Mathan Temple, Jonathan |
| Issue Date: | | 2008 |
| Series/Report no.: | | School of Economics discussion papers 08,05 |
| Abstract: | | In middle-income countries, the informal sector often accounts for a substantial fraction of the urban labor force. We develop a general equilibrium model with matching frictions in the urban labor market, the possibility of self-employment in the informal sector, and scope for rural-urban migration. We investigate the effects of different types of growth on wages and the informal sector, and the extent to which labor market institutions can influence aggregate productivity. We quantify these effects by calibrating the model to data for Mexico. |
| Subjects: | | informal sector urban unemployment dual economies matching frictions |
| JEL: | | J40 O10 |
| Document Type: | | Working Paper |
| Appears in Collections: | | School of Economics Discussion Papers, University of Kent
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