Download This PaperOn the Aggregate Implications of Removing Barriers to Formality
18 Pages Posted: 19 Aug 2020
Date Written: May 1, 2020
Abstract
This article examines the aggregate implications of several policies aimed at removing barriers to formality. To this end, we build a dynamic equilibrium model in which heterogeneous agents choose to work for a wage or operate a technology in the formal or informal sector, based on the costs and benefits associated with these occupational choices.
JEL Classification: E26, H20, J30, L26, O17
Suggested Citation: Suggested Citation
Granda Carvajal, Catalina and Hamann, Franz, On the Aggregate Implications of Removing Barriers to Formality (May 1, 2020). FRB of St. Louis Working Paper No. Forthcoming, Available at SSRN: https://ssrn.com/abstract=3676536 or http://dx.doi.org/10.20955/r.102.203-20
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