Arbeitspapier
Moral costs, the informal sector and unemployment
While examining the macroeconomic effects of increased government control of the informal sector, this paper develops a two-sector general equilibrium model featuring matching frictions and worker-firm wage bargaining. The same good is produced in the formal and in the informal sector. Moral considerations are determinant for whether the worker search for jobs in the formal or in the informal sector. We analyse the impact of higher punishment fees and a higher audit rate on wages, sector division, unemployment and welfare.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working paper ; No. 1-2001
- Classification
-
Wirtschaft
Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data)
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- Subject
-
Employment
Unemployment
Wages
Macroeconomics
- Event
-
Geistige Schöpfung
- (who)
-
Kolm, Ann-Sofie
Larsen, Birthe
- Event
-
Veröffentlichung
- (who)
-
Copenhagen Business School (CBS), Department of Economics
- (where)
-
Frederiksberg
- (when)
-
2001
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kolm, Ann-Sofie
- Larsen, Birthe
- Copenhagen Business School (CBS), Department of Economics
Time of origin
- 2001
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