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Informal Labour and Credit Markets :, A Survey, Paul Levine, Emanuela Lotti, Nicoletta Batini, Young-Bae Kim

This paper reviews the literature on the informal economy, focusing first on empirical findings and then on existing approaches to modeling informality within both partial and general equilibrium environments. We concentrate on labour and credit markets, since these tend to be most affected by informality. The phenomenon is particularly important in emerging and other developing economies, given their high degrees of informal labour and financial services and the implications these have for the effectiveness of macroeconomic policy. We emphasize the need for dynamic general equilibrium (DGE) and ultimately dynamic stochastic general equilibrium (DSGE) models for a full understanding of the costs, benefits and policy implications of informality. The survey shows that the literature on informality is quite patchy, and that there are several unexplored areas left for research
Table Of Contents
Contents; I. Introduction; II. Literature on Empirical Evidence; A. How do we Measure the Informal Economy?; B. The Size of the Informal Economy; Figures; 1. The Size of the Informal Economy around the World Schneider (2005); C. Causes and Impact of Informality; D. Main stylized facts; Informal employment; Informal credit markets; III. Informality in the Labour Market: Early Contributions; IV. Informality and Labour Market Frictions; A. The Intersectoral Margin for Workers and Firms; B. The Intersectoral Margin for Workers; C. The Intrafirm Margin and the Occupational Choice
Literary Form
non fiction
"February 2010."
Physical Description
1 online resource (43 p.)
Specific Material Designation
Form Of Item

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