On the Aggregate Implications of Removing Barriers to Formality

RePEc Short ID: pgr245
ORCID iD: 0000-0002-4997-2324

Granda Carvajal, Catalina; Hamann, Franz

doi:10.20955/r.102.203-20

Journal Article

On the Aggregate Implications of Removing Barriers to Formality

Abstract: This article examines the aggregate implications of several policies aimed at removing barriers to formality. To this end, we build a dynamic equilibrium model in which heterogeneous agents choose to work for a wage or operate a technology in the formal or informal sector, based on the costs and benefits associated with these occupational choices.

JEL Classification: E26; H20; J30; L26; O17;

https://doi.org/10.20955/r.102.203-20