On the Aggregate Implications of Removing Barriers to Formality
18 Pages Posted: 19 Aug 2020
Date Written: May 1, 2020
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