A competitive model of the informal sector

• 成果类型: Article
• 署名作者: Amaral, Pedro S.; Quintin, Erwan
• 署名单位: Southern Methodist University; Federal Reserve System - USA; Federal Reserve Bank - Dallas
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2005.07.016
• 发表日期: 2006
• 页码: 1541-1553
• 关键词: Informal sector; organization of production; limited enforcement

摘要

In developing nations, formal workers tend to be more experienced, more educated, and earn more than informal workers. These facts are often interpreted as evidence that low-skill workers face barriers to entry into the formal sector. Yet, there is little empirical evidence that such barriers are important. This paper describes a model where, in equilibrium, the characteristics of formal and informal workers differ systematically, even though labor markets are perfectly competitive. The informal sector emphasizes low-skill work, as in the data, because informal managers have access to less outside financing, and choose to substitute low-skill labor for physical capital. (c) 2006 Elsevier B.V. All rights reserved.