A structural econometric analysis of the informal sector heterogeneity

• 成果类型: Article
• 署名作者: Nguimkeu, Pierre
• 署名单位: University System of Georgia; Georgia State University
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2013.12.001
• 发表日期: 2014
• 页码: 175-191
• 关键词: Occupational choice; financial constraints; Entrepreneurial skills; Maximum likelihood estimation; Informal economy; Nonparametric Estimation; Specification testing

摘要

Understanding the informal sector - that represents about 60-90% of urban employment in developing countries has a significant importance for any strategy and policy interventions aiming to alleviate poverty and improve welfare. I formulate and estimate a model of entrepreneurial choice to address the heterogeneity in occupations and earnings observed within the informal sector. I test the implications of the model with reduced form and non-parametric techniques, and use a structural econometric approach to empirically identify occupational patterns and earnings using data from the Cameroon informal sector. The empirical validity of the structural estimates is tested and the estimated model is used in counterfactual policy simulations to show how microfinance and business training programs can strengthen the efficiency of the informal sector and substantially improve its earning potential. (C) 2013 Elsevier B.V. All rights reserved.