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.

Sprache
Englisch

Erschienen in
Series: Working paper ; No. 1-2001

Klassifikation
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
Thema
Employment
Unemployment
Wages
Macroeconomics

Ereignis
Geistige Schöpfung
(wer)
Kolm, Ann-Sofie
Larsen, Birthe
Ereignis
Veröffentlichung
(wer)
Copenhagen Business School (CBS), Department of Economics
(wo)
Frederiksberg
(wann)
2001

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Kolm, Ann-Sofie
  • Larsen, Birthe
  • Copenhagen Business School (CBS), Department of Economics

Entstanden

  • 2001

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