The Experts below are selected from a list of 65655 Experts worldwide ranked by ideXlab platform
Susan Vroman - One of the best experts on this subject based on the ideXlab platform.
-
THE EFFECTS OF LABOUR MARKET POLICIES IN AN ECONOMY WITH AN Informal Sector
The Economic Journal, 2009Co-Authors: James Albrecht, Lucas Navarro, Susan VromanAbstract:In this article, we build an equilibrium search and matching model of an economy with an Informal Sector. Our model extends Mortensen and Pissarides (1994) by allowing for ex ante worker heterogeneity with respect to formal-Sector productivity. We use the model to analyse the effects of labour market policy on Informal-Sector and formal-Sector output, on the division of the workforce into unemployment, Informal-Sector employment and formal-Sector employment, and on wages. Finally, we examine the distributional implications of labour market policy; specifically, we analyse how labour market policy affects the distributions of wages and productivities across formal-Sector matches. In this article we construct a search and matching model that we use to analyse the effects of labour market policies in an economy with a significant Informal Sector. What we mean by an Informal Sector is a Sector that is unregulated and hence not directly affected by labour market policies such as severance or payroll taxes. We find that labour market policies that apply only to the formal Sector nonetheless affect the size and the composition of employment in the Informal Sector. This is important since there is substantial economic activity in the Informal Sector in many economies, particularly in developing countries. Estimates for some Latin American countries put the Informal Sector at more than 50% of the urban work force.1 The Informal Sector is also important in many transition countries as well as in some developed economies.2 Although much of the literature treats the Informal Sector as a disadvantaged Sector in a segmented labour market framework, this interpretation is not consistent with recent empirical evidence from Latin America. Under a segmented or dual labour market interpretation, one would expect jobs to be rationed in the primary Sector and workers to be in the secondary or Informal Sector involuntarily and to be queuing for formal-Sector jobs. Maloney (2004) presents evidence for several Latin American countries that challenges this view and instead interprets the Informal Sector as an unregulated micro-entrepreneurial Sector. Similarly, using data from the Argentinian household survey, Pratap and Quintin (2006) reject the notion that labour markets are segmented in the greater Buenos Aires area, concluding that there is no evidence of a formal-Sector wage premium after controlling for individual and establishment * We thank Mauricio Santamaria for stimulating conversations that inspired our interest in this topic. We also thank Bob Hussey and Fabien Postel-Vinay as well as our editor, Steve Pischke, and two anonymous
-
the effects of labor market policies in an economy with an Informal Sector
Research Papers in Economics, 2006Co-Authors: James Albrecht, Lucas Navarro, Susan VromanAbstract:In this paper, we build an equilibrium search and matching model of an economy with an Informal Sector. Our model extends Mortensen and Pissarides (1994) by allowing for ex ante worker heterogeneity with respect to formal-Sector productivity. We use the model to analyze the effects of labour market policy on Informal-Sector and formal Sector output, on the division of the workforce into unemployment, Informal-Sector employment and formal-Sector employment, and on wages. Finally, we examine the distributional implications of labour market policy; specifically, we analyse how labour market policy affects the distributions of wages and productivities across formal-Sector matches. Keywords: Informality and Labour Market Policy
-
the effects of labor market policies in an economy with an Informal Sector
Social Science Research Network, 2006Co-Authors: James Albrecht, Lucas Navarro, Susan VromanAbstract:In many economies, there is substantial economic activity in the Informal Sector, beyond the reach of government policy. Labor market policies, which by definition apply only to the formal Sector, can have important spillover effects on the Informal Sector. The relative sizes of the Informal and formal Sectors adjust, the skill composition of the workforce in the two Sectors changes, etc. In this paper, we build an equilibrium search and matching model to analyze the effects of labor market policies in an economy with an Informal Sector. Our model extends Mortensen and Pissarides (1994) by allowing for ex ante worker heterogeneity with respect to formal-Sector productivity. We analyze the effects of labor market policy on Informal- and formal-Sector output, on the division of the workforce into unemployment, Informal-Sector employment and formal-Sector employment, and on wages. Finally, our model allows us to examine the distributional implications of labor market policy; specifically, we analyze how labor market policy affects the distributions of wages and productivities across formal-Sector matches.
James Albrecht - One of the best experts on this subject based on the ideXlab platform.
-
THE EFFECTS OF LABOUR MARKET POLICIES IN AN ECONOMY WITH AN Informal Sector
The Economic Journal, 2009Co-Authors: James Albrecht, Lucas Navarro, Susan VromanAbstract:In this article, we build an equilibrium search and matching model of an economy with an Informal Sector. Our model extends Mortensen and Pissarides (1994) by allowing for ex ante worker heterogeneity with respect to formal-Sector productivity. We use the model to analyse the effects of labour market policy on Informal-Sector and formal-Sector output, on the division of the workforce into unemployment, Informal-Sector employment and formal-Sector employment, and on wages. Finally, we examine the distributional implications of labour market policy; specifically, we analyse how labour market policy affects the distributions of wages and productivities across formal-Sector matches. In this article we construct a search and matching model that we use to analyse the effects of labour market policies in an economy with a significant Informal Sector. What we mean by an Informal Sector is a Sector that is unregulated and hence not directly affected by labour market policies such as severance or payroll taxes. We find that labour market policies that apply only to the formal Sector nonetheless affect the size and the composition of employment in the Informal Sector. This is important since there is substantial economic activity in the Informal Sector in many economies, particularly in developing countries. Estimates for some Latin American countries put the Informal Sector at more than 50% of the urban work force.1 The Informal Sector is also important in many transition countries as well as in some developed economies.2 Although much of the literature treats the Informal Sector as a disadvantaged Sector in a segmented labour market framework, this interpretation is not consistent with recent empirical evidence from Latin America. Under a segmented or dual labour market interpretation, one would expect jobs to be rationed in the primary Sector and workers to be in the secondary or Informal Sector involuntarily and to be queuing for formal-Sector jobs. Maloney (2004) presents evidence for several Latin American countries that challenges this view and instead interprets the Informal Sector as an unregulated micro-entrepreneurial Sector. Similarly, using data from the Argentinian household survey, Pratap and Quintin (2006) reject the notion that labour markets are segmented in the greater Buenos Aires area, concluding that there is no evidence of a formal-Sector wage premium after controlling for individual and establishment * We thank Mauricio Santamaria for stimulating conversations that inspired our interest in this topic. We also thank Bob Hussey and Fabien Postel-Vinay as well as our editor, Steve Pischke, and two anonymous
-
the effects of labor market policies in an economy with an Informal Sector
Research Papers in Economics, 2006Co-Authors: James Albrecht, Lucas Navarro, Susan VromanAbstract:In this paper, we build an equilibrium search and matching model of an economy with an Informal Sector. Our model extends Mortensen and Pissarides (1994) by allowing for ex ante worker heterogeneity with respect to formal-Sector productivity. We use the model to analyze the effects of labour market policy on Informal-Sector and formal Sector output, on the division of the workforce into unemployment, Informal-Sector employment and formal-Sector employment, and on wages. Finally, we examine the distributional implications of labour market policy; specifically, we analyse how labour market policy affects the distributions of wages and productivities across formal-Sector matches. Keywords: Informality and Labour Market Policy
-
the effects of labor market policies in an economy with an Informal Sector
Social Science Research Network, 2006Co-Authors: James Albrecht, Lucas Navarro, Susan VromanAbstract:In many economies, there is substantial economic activity in the Informal Sector, beyond the reach of government policy. Labor market policies, which by definition apply only to the formal Sector, can have important spillover effects on the Informal Sector. The relative sizes of the Informal and formal Sectors adjust, the skill composition of the workforce in the two Sectors changes, etc. In this paper, we build an equilibrium search and matching model to analyze the effects of labor market policies in an economy with an Informal Sector. Our model extends Mortensen and Pissarides (1994) by allowing for ex ante worker heterogeneity with respect to formal-Sector productivity. We analyze the effects of labor market policy on Informal- and formal-Sector output, on the division of the workforce into unemployment, Informal-Sector employment and formal-Sector employment, and on wages. Finally, our model allows us to examine the distributional implications of labor market policy; specifically, we analyze how labor market policy affects the distributions of wages and productivities across formal-Sector matches.
Nina Pavcnik - One of the best experts on this subject based on the ideXlab platform.
-
the response of the Informal Sector to trade liberalization
Journal of Development Economics, 2003Co-Authors: Pinelopi Koujianou Goldberg, Nina PavcnikAbstract:This paper studies the relationship between trade liberalization and Informality. It is often claimed that increased foreign competition in developing countries leads to an expansion of the Informal Sector, defined as the Sector that does not comply with labor market legislation. Using data from two countries that experienced large trade barrier reductions in the 1980’s and 1990’s, Brazil and Colombia, we examine the response of the Informal Sector to liberalization. In Brazil, we find no evidence of a relationship between trade policy and Informality. In Colombia, we do find evidence of such a relationship, but only for the period preceding a major labor market reform that increased the flexibility of the Colombian labor market. These results point to the significance of labor market institutions in assessing the effects of trade policy on the labor market.
Colin C Williams - One of the best experts on this subject based on the ideXlab platform.
-
beyond the marginalization thesis an evaluation of the prevalence character and motives of Informal Sector entrepreneurs in kosovo
Journal of Developmental Entrepreneurship, 2021Co-Authors: Ardiana Gashi, Colin C WilliamsAbstract:The conventional depiction of the prevalence, character and motives of Informal Sector entrepreneurs, here termed the ‘marginalization thesis,’ has been that Informal entrepreneurs are a small, ins...
-
regulating the sharing economy to prevent the growth of the Informal Sector in the hospitality industry
International Journal of Contemporary Hospitality Management, 2017Co-Authors: Colin C Williams, Ioana Alexandra HorodnicAbstract:Purpose To tackle one of the main negative consequences of the sharing economy, namely, the growth of the Informal Sector, the purpose of this paper is to evaluate for the first time the impacts of the Informal Sector on the hospitality industry and then to discuss what needs to be done to prevent the further growth of the Informal Sector in this industry. Design/methodology/approach To evaluate the impacts of the Informal Sector on the hospitality industry, data are reported from 30 East European and Central Asian countries collected in 2013 in the Business Environment and Enterprise Performance Survey. Findings The finding is that 23 per cent of hotels and restaurants in Eastern Europe and Central Asia report competing against unregistered or Informal operators, and 13 per cent view these Informal competitors as a major or severe obstacle. The larger the business, the greater is the likelihood that the Informal Sector is considered their biggest obstacle. Practical implications To prevent the further growth of the Informal Sector in the hospitality industry, regulation of the sharing economy will be required. To achieve this, it is shown that state authorities need to adopt both direct control measures that alter the costs of operating in the Informal Sector and the benefits and ease of operating formally, as well as indirect control measures that reduce the acceptability of operating in the Informal Sector. Originality/value This is the first paper to evaluate the impacts of the Informal Sector on the hospitality industry and to outline the policy measures required to prevent its further growth with the advent of the sharing economy.
-
tackling enterprises operating in the Informal Sector in developing and transition economies a critical evaluation of the neo liberal policy approach
Social Science Research Network, 2014Co-Authors: Colin C WilliamsAbstract:Over the past decade or so, there has been widespread recognition that a large and growing proportion of the global workforce is employed in Informal Sector enterprises. To explain this, neo-liberals contend that enterprises operate in the Informal Sector due to high taxes, public Sector corruption and too much state interference in the free market and that the remedy is therefore to reduce taxes, public Sector corruption and the regulatory burden via minimal state intervention. To evaluate critically this neo-liberal policy approach, this paper explores whether cross-national variations in the share of the workforce in Informal Sector enterprises are associated with cross-national variations in the level of tax rates, corruption and state interference. To do this, International Labour Organisation data on the share of the workforce in Informal Sector enterprises in 43 developing and transition economies is compared with cross-national variations in tax rates, corruption and levels of state intervention using World Bank development indicators. The finding is that there is little or no evidence to support the neo-liberal policy approach that decreasing tax rates, public Sector corruption and the regulatory burden via minimal state intervention, reduces the share of the workforce in Informal Sector enterprises. Instead, higher tax rates and levels of regulation and state intervention are found to be associated with lower (not higher) levels of employment in Informal Sector enterprise. The paper concludes by discussing the theoretical and policy implications.
-
beyond the formal economy evaluating the level of employment in Informal Sector enterprises in global perspective
Journal of Developmental Entrepreneurship, 2013Co-Authors: Colin C WilliamsAbstract:The aim of this paper is to evaluate the varying level of employment in Informal Sector enterprises across the globe and to undertake an exploratory analysis of the wider economic and social conditions associated with greater levels of Informalization. Examining International Labor Organization surveys conducted in 43 countries, the finding is that the main job of just under one in three (31.5 percent) non-agricultural workers is in an Informal Sector enterprise. Conducting an exploratory analysis of the correlation between countries with higher levels of employment in Informal Sector enterprises and economic under-development ('modernization' thesis), higher taxes, corruption and state interference ('neo-liberal' thesis) and inadequate state intervention to protect workers from poverty ('structuralist' thesis), the finding is that there is a need to synthesize various tenets from all three perspectives. The outcome is a tentative call for a 'neo-modernization' perspective, which posits that higher levels of employment in Informal Sector enterprises are associated with economic under-development, public Sector corruption and inadequate state intervention to protect workers from poverty.
-
entrepreneurship and the Informal Sector some lessons from india
The international journal of entrepreneurship and innovation, 2009Co-Authors: Anjula Gurtoo, Colin C WilliamsAbstract:This paper critically evaluates the popular structuralist representation of Informal workers as marginalized populations who work as dependent employees out of economic necessity and as a last resort. Reporting on an empirical survey of 1,518 Informal workers in India, it reveals not only that a large proportion work on their own account as Informal entrepreneurs, but also that not all do such work purely out of economic necessity and in the absence of alternative means of livelihood. The paper concludes by calling for a wider recognition of the opportunity-driven entrepreneurial endeavour of many working in the Informal Sector.
Lucas Navarro - One of the best experts on this subject based on the ideXlab platform.
-
THE EFFECTS OF LABOUR MARKET POLICIES IN AN ECONOMY WITH AN Informal Sector
The Economic Journal, 2009Co-Authors: James Albrecht, Lucas Navarro, Susan VromanAbstract:In this article, we build an equilibrium search and matching model of an economy with an Informal Sector. Our model extends Mortensen and Pissarides (1994) by allowing for ex ante worker heterogeneity with respect to formal-Sector productivity. We use the model to analyse the effects of labour market policy on Informal-Sector and formal-Sector output, on the division of the workforce into unemployment, Informal-Sector employment and formal-Sector employment, and on wages. Finally, we examine the distributional implications of labour market policy; specifically, we analyse how labour market policy affects the distributions of wages and productivities across formal-Sector matches. In this article we construct a search and matching model that we use to analyse the effects of labour market policies in an economy with a significant Informal Sector. What we mean by an Informal Sector is a Sector that is unregulated and hence not directly affected by labour market policies such as severance or payroll taxes. We find that labour market policies that apply only to the formal Sector nonetheless affect the size and the composition of employment in the Informal Sector. This is important since there is substantial economic activity in the Informal Sector in many economies, particularly in developing countries. Estimates for some Latin American countries put the Informal Sector at more than 50% of the urban work force.1 The Informal Sector is also important in many transition countries as well as in some developed economies.2 Although much of the literature treats the Informal Sector as a disadvantaged Sector in a segmented labour market framework, this interpretation is not consistent with recent empirical evidence from Latin America. Under a segmented or dual labour market interpretation, one would expect jobs to be rationed in the primary Sector and workers to be in the secondary or Informal Sector involuntarily and to be queuing for formal-Sector jobs. Maloney (2004) presents evidence for several Latin American countries that challenges this view and instead interprets the Informal Sector as an unregulated micro-entrepreneurial Sector. Similarly, using data from the Argentinian household survey, Pratap and Quintin (2006) reject the notion that labour markets are segmented in the greater Buenos Aires area, concluding that there is no evidence of a formal-Sector wage premium after controlling for individual and establishment * We thank Mauricio Santamaria for stimulating conversations that inspired our interest in this topic. We also thank Bob Hussey and Fabien Postel-Vinay as well as our editor, Steve Pischke, and two anonymous
-
the effects of labor market policies in an economy with an Informal Sector
Research Papers in Economics, 2006Co-Authors: James Albrecht, Lucas Navarro, Susan VromanAbstract:In this paper, we build an equilibrium search and matching model of an economy with an Informal Sector. Our model extends Mortensen and Pissarides (1994) by allowing for ex ante worker heterogeneity with respect to formal-Sector productivity. We use the model to analyze the effects of labour market policy on Informal-Sector and formal Sector output, on the division of the workforce into unemployment, Informal-Sector employment and formal-Sector employment, and on wages. Finally, we examine the distributional implications of labour market policy; specifically, we analyse how labour market policy affects the distributions of wages and productivities across formal-Sector matches. Keywords: Informality and Labour Market Policy
-
the effects of labor market policies in an economy with an Informal Sector
Social Science Research Network, 2006Co-Authors: James Albrecht, Lucas Navarro, Susan VromanAbstract:In many economies, there is substantial economic activity in the Informal Sector, beyond the reach of government policy. Labor market policies, which by definition apply only to the formal Sector, can have important spillover effects on the Informal Sector. The relative sizes of the Informal and formal Sectors adjust, the skill composition of the workforce in the two Sectors changes, etc. In this paper, we build an equilibrium search and matching model to analyze the effects of labor market policies in an economy with an Informal Sector. Our model extends Mortensen and Pissarides (1994) by allowing for ex ante worker heterogeneity with respect to formal-Sector productivity. We analyze the effects of labor market policy on Informal- and formal-Sector output, on the division of the workforce into unemployment, Informal-Sector employment and formal-Sector employment, and on wages. Finally, our model allows us to examine the distributional implications of labor market policy; specifically, we analyze how labor market policy affects the distributions of wages and productivities across formal-Sector matches.