Arbeitspapier

Informal Unemployment and Education

This paper develops a four sector equilibrium search and matching model with informal sector employment opportunities and educational choice. We show that underground activities reduce educational at- tainments if informal employment opportunities mainly are available to low educated workers. More zealous enforcement policy will in this case improve educational incentives as it reduces the attractiveness of remaining a low educated worker. Characterizing the optimal enforce- ment policies, we nd that relatively more audits should be targeted towards the sector employing low educated workers, elsewise a too low stock of educated workers is materialized.

Language
Englisch

Bibliographic citation
Series: Working paper ; No. 2-2011

Classification
Wirtschaft
Labor Economics Policies
Subject
labor market
education

Event
Geistige Schöpfung
(who)
Larsen, Birthe
Event
Veröffentlichung
(who)
Copenhagen Business School (CBS), Department of Economics
(where)
Frederiksberg
(when)
2011

Handle
Last update
01.05.2311, 12:41 PM CEST

Data provider

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Object type

  • Arbeitspapier

Associated

  • Larsen, Birthe
  • Copenhagen Business School (CBS), Department of Economics

Time of origin

  • 2011

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