Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67306
Authors: 
Charlot, Olivier
Malherbet, Franck
Ulus, Mustafa
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 6935
Abstract: 
We consider a dual labor market with a frictional formal sector and a competitive informal sector. We show that the size of the informal sector is generally too large compared to the optimal allocation of the workers. It follows that our results give a rationale to informality-reducing policies.
Subjects: 
search and matching models
informality
efficiency
JEL: 
E24
E26
J60
L16
O1
Document Type: 
Working Paper

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