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dc.contributor.authorCharlot, Olivieren_US
dc.contributor.authorMalherbet, Francken_US
dc.contributor.authorTerra, Cristinaen_US
dc.date.accessioned2011-07-19en_US
dc.date.accessioned2011-11-23T11:35:22Z-
dc.date.available2011-11-23T11:35:22Z-
dc.date.issued2011en_US
dc.identifier.piurn:nbn:de:101:1-201104113925en_US
dc.identifier.urihttp://hdl.handle.net/10419/51786-
dc.description.abstractThis paper studies the impact of product and labor market regulations on informality and unemployment in a general framework where formal and informal firms are subject to the same externalities, differing only with respect to some parameter values. Both formal and informal firms have monopoly power in the goods market, they are subject to matching friction in the labor market, and wages are determined through bargaining between large firms and their workers. The informal sector is found to be endogenously more competitive than the formal one. We find that lower strictness of product or labor market regulations lead to a simultaneous reduction in informality and unemployment. The difference between these two policy options lies on their effect on wages. Lessening product market strictness increases wages in both sector but also increases the formal sector wage premium. The opposite is true for labor market regulation. Finally, we show that the so-called overhiring externality due to wage bargaining translates into a smaller relative size of the informal sector.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5519en_US
dc.subject.jelE24en_US
dc.subject.jelE26en_US
dc.subject.jelJ60en_US
dc.subject.jelL16en_US
dc.subject.jelO1en_US
dc.subject.ddc330en_US
dc.subject.keywordinformalityen_US
dc.subject.keywordproduct and labor market imperfectionsen_US
dc.subject.keywordfirm sizeen_US
dc.subject.stwRegulierungen_US
dc.subject.stwArbeitsmarktpolitiken_US
dc.subject.stwWirkungsanalyseen_US
dc.subject.stwInformeller Sektoren_US
dc.subject.stwArbeitslosigkeiten_US
dc.subject.stwLohnstrukturen_US
dc.subject.stwUnvollkommener Markten_US
dc.subject.stwEntwicklungsländeren_US
dc.titleProduct market regulation, firm size, unemployment and informality in developing economiesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn664415040en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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