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Payroll tax, job search and informality

Authors: Zoraida Fernandez The present paper examines the quantitative effects of a labor market policy on the Bolivian economy. In addition, we study the links between demand and supply of labor in economies with informal sector; including wage bargaining by the method of Nash and worker heterogeneity with respect to formal-sector productivity. A simulation is […]

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Voluntary and involuntary labor informality

Authors: Rolando Morales, Danilo Agramont and Mónica Cueto By classifying workers in terms of being dependent or independent (micro entrepreneur and the self-employed) and in terms of formal or informal, this paper raises some important questions:1) is it possible to identify a relation between the idiosyncratic characteristics of workers with their election of a labor category?; […]

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Informality in an Economy with Active Labor Courts

Authors: Vladimir Ponczek, Luis Araujo, André Portela Job regulations and the justice branch interfere on several aspects of labor contracts. We build a model which explores the role of labor courts on the wage distribution in both formal and informal sectors. We obtain that the presence of active labor courts produces a negative relation between the […]