Work

Informality, self-employment and heterogeneous managerial ability: A model for developing countries

Type: article

Abstract: The view of informal employment as a last resort in the labour market has recently been challenged by numerous studies documenting the existence of a high degree of heterogeneity within the formal and informal sectors. In particular, informal self‐employment/employment may be voluntary or forced. There is currently not much theoretical support for these observations. We develop a theoretical model of the labour market with both formal and informal firms and a distribution of managerial skills in the population. Consistent with existing empirical evidence, this setup reconciles the undesirable and productive forms of self‐employment that coexist in the economy.

Source: Open Access CRIS of the University of Bern

DOI: 10.48620/75830

Authors: Eliane Badaoui, Olivier Bargain, Prudence Kwenda, Strobl, Eric, Frank Walsh

Language: English

Topic: Education and Labor Relations

Subfield: Political Science and International Relations

Field: Social Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W6910646538

Cites:

Cited by:

Related to: