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
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Englisch
- Bibliographic citation
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Series: Working paper ; No. 2-2011
- Classification
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Wirtschaft
Labor Economics Policies
- Subject
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labor market
education
- Event
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Geistige Schöpfung
- (who)
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Larsen, Birthe
- Event
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Veröffentlichung
- (who)
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Copenhagen Business School (CBS), Department of Economics
- (where)
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Frederiksberg
- (when)
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2011
- Handle
- Last update
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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