Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/50609
Authors: 
Satchi, Mathan
Temple, Jonathan
Year of Publication: 
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

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