Arbeitspapier

Labour markets and productivity in developing countries

In middle-income countries, the informal sector often accounts for a substantial fraction of the urban labor force. We develop a general equilibrium model with matching frictions in the urban labor market, the possibility of self-employment in the informal sector, and scope for rural-urban migration. We investigate the effects of different types of growth on wages and the informal sector, and the extent to which labor market institutions can influence aggregate productivity. We quantify these effects by calibrating the model to data for Mexico.

Language
Englisch

Bibliographic citation
Series: Department of Economics Discussion Paper ; No. 08,05

Classification
Wirtschaft
Particular Labor Markets: General
Economic Development: General
Subject
informal sector
urban unemployment
dual economies
matching frictions
Städtischer Arbeitsmarkt
Informeller Sektor
Binnenwanderung
Selbstständige
Lohnniveau
Arbeitsproduktivität
Mexiko

Event
Geistige Schöpfung
(who)
Satchi, Mathan
Temple, Jonathan
Event
Veröffentlichung
(who)
University of Kent, Department of Economics
(where)
Canterbury
(when)
2008

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Satchi, Mathan
  • Temple, Jonathan
  • University of Kent, Department of Economics

Time of origin

  • 2008

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