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Erscheinungsjahr: 
2008
Schriftenreihe/Nr.: 
Department of Economics Discussion Paper No. 08,05
Verlag: 
University of Kent, Department of Economics, Canterbury
Zusammenfassung: 
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.
Schlagwörter: 
informal sector
urban unemployment
dual economies
matching frictions
JEL: 
J40
O10
Dokumentart: 
Working Paper

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