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| Titre : | Labor Market Policies in a Dual Economy (2021) |
| Auteurs : | Julen Esteban-Pretel ; Sagiri Kitao |
| Type de document : | Article : texte imprimé |
| Dans : | Labour economics (vol. 68, January 2021) |
| Article en page(s) : | Article 101956 |
| Langues: | Anglais |
| Catégories : |
Thésaurus CEREQ POLITIQUE DE L'EMPLOI ; PRATIQUE DE GRH ; FISCALITE D'ENTREPRISE ; ECONOMIE DU TRAVAIL ; ECONOMIE SOUTERRAINE ; SALAIRE ; INDEMNISATION DU CHOMAGE ; ECONOMETRIE ; MODELISATION ; MEXIQUE |
| Résumé : | A structural model of heterogeneous agents is built to account for the labor market dynamics of an economy with a large informal sector and to quantify effects of labor market policies on employment, worker flows, savings and welfare in a dual economy. The introduction of unemployment insurance has only a small impact on unemployment but induces a sectoral reallocation of formal labor into informality. Generous severance payments lower the wage of formal jobs and reduce flows from unemployment to formality. In financing expenditures, shifting a tax burden from labor income to consumption increases the size of a formal sector, enhancing productivity and welfare. Economic and welfare consequences of policy reform can significantly differ from those in a single-sector economy due to workers’ incentives to avoid taxes and maximize transfers by moving across sectors. |
| Document Céreq : | Non |
| En ligne : | https://doi.org/10.1016/j.labeco.2020.101956 |
