Copy For Citation
Charlot O., Malherbet F., Ulus M.
ECONOMICS LETTERS, vol.118, no.1, pp.192-194, 2013 (SSCI)
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Publication Type:
Article / Article
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Volume:
118
Issue:
1
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Publication Date:
2013
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Doi Number:
10.1016/j.econlet.2012.10.017
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Journal Name:
ECONOMICS LETTERS
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Journal Indexes:
Social Sciences Citation Index (SSCI), Scopus
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Page Numbers:
pp.192-194
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Keywords:
Search and matching models, Informality, Efficiency, DEVELOPING-COUNTRIES
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Galatasaray University Affiliated:
Yes
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. (C) 2012 Elsevier B.V. All rights reserved.