Efficiency in a search and matching economy with a competitive informal sector

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Charlot O., Malherbet F., Ulus M.

ECONOMICS LETTERS, cilt.118, sa.1, ss.192-194, 2013 (SSCI İndekslerine Giren Dergi) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 118 Konu: 1
  • Basım Tarihi: 2013
  • Doi Numarası: 10.1016/j.econlet.2012.10.017
  • Sayfa Sayıları: ss.192-194


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. (C) 2012 Elsevier B.V. All rights reserved.