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dc.contributor.authorCharlot, Olivieren
dc.contributor.authorMalherbet, Francken
dc.contributor.authorTerra, Cristinaen
dc.date.accessioned2011-07-19-
dc.date.accessioned2011-11-23T11:35:22Z-
dc.date.available2011-11-23T11:35:22Z-
dc.date.issued2011-
dc.identifier.piurn:nbn:de:101:1-201104113925en
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
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x5519en
dc.subject.jelE24en
dc.subject.jelE26en
dc.subject.jelJ60en
dc.subject.jelL16en
dc.subject.jelO1en
dc.subject.ddc330en
dc.subject.keywordinformalityen
dc.subject.keywordproduct and labor market imperfectionsen
dc.subject.keywordfirm sizeen
dc.subject.stwRegulierungen
dc.subject.stwArbeitsmarktpolitiken
dc.subject.stwWirkungsanalyseen
dc.subject.stwInformeller Sektoren
dc.subject.stwArbeitslosigkeiten
dc.subject.stwLohnstrukturen
dc.subject.stwUnvollkommener Markten
dc.subject.stwEntwicklungsländeren
dc.titleProduct market regulation, firm size, unemployment and informality in developing economies-
dc.typeWorking Paperen
dc.identifier.ppn664415040en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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