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

Olivier Charlot; Franck Malherbet; Mustafa Ulus

doi:10.1016/j.econlet.2012.10.017

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

Olivier Charlot
, Franck Malherbet
, Mustafa Ulus

Research output: Contribution to journal › Article › peer-review

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.

Original language	English
Pages (from-to)	192-194
Number of pages	3
Journal	Economics Letters
Volume	118
Issue number	1
DOIs	https://doi.org/10.1016/j.econlet.2012.10.017
Publication status	Published - 1 Jan 2013
Externally published	Yes

Keywords

Efficiency
Informality
Search and matching models

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10.1016/j.econlet.2012.10.017

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title = "Efficiency in a search and matching economy with a competitive informal sector",

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.",

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

Abstract

Keywords

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