Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/72397 
Year of Publication: 
2006
Series/Report no.: 
UCD Centre for Economic Research Working Paper Series No. WP06/29
Publisher: 
University College Dublin, UCD School of Economics, Dublin
Abstract: 
We use an equilibrium search framework to model a formal- informal sector labour market where the informal sector arises endogenously. In our model large firms will be in the formal sector and pay a wage premium, while small firms are characterised by low wages and tend to be in the informal sector. Using data from the South African labour force survey we illustrate that the data is consistent with these predictions.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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