Artikel
Risk attitudes and informal employment in a developing economy
We model an urban labour market in a developing economy, incorporating workers' risk attitudes. Trade-offs between risk aversion and ability determine worker allocation across formal and informal wage employment, and voluntary and involuntary self employment. Greater risk of informal wage non-payment can raise or lower informal wage employment, depending on the source of risk. Informal wage employment can be reduced by increasing detection efforts or by strengthening contract enforcement for informal wage payment. As the average ability of workers rises, informal wage employment first rises, then falls. Greater demand for formal production may lead to more involuntary self employment.
- Language
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Englisch
- Bibliographic citation
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Journal: IZA Journal of Labor & Development ; ISSN: 2193-9020 ; Volume: 1 ; Year: 2012 ; Pages: 1-17 ; Heidelberg: Springer
- Classification
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Wirtschaft
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Labor Demand
Criteria for Decision-Making under Risk and Uncertainty
- Subject
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risk attitudes
informality
self employment
Städtischer Arbeitsmarkt
Arbeitsangebot
Risikoaversion
Informeller Sektor
Arbeitsmarktsegmentation
Entwicklungsländer
Theorie
- Event
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Geistige Schöpfung
- (who)
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Bennett, John
Gould, Matthew
Rablen, Matthew D.
- Event
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Veröffentlichung
- (who)
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Springer
- (where)
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Heidelberg
- (when)
-
2012
- DOI
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doi:10.1186/2193-9020-1-5
- Handle
- Last update
-
10.03.2025, 11:42 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
- Artikel
Associated
- Bennett, John
- Gould, Matthew
- Rablen, Matthew D.
- Springer
Time of origin
- 2012
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