Our website will undergo scheduled maintenance on the morning of Thursday, August 11, 2022. During this time, connection to our website and some of its features may be unavailable. Thank you for your patience and we apologize for any inconvenience.

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;


Access Documents

File(s): File format is application/pdf https://files.stlouisfed.org/files/htdocs/publications/review/2020/05/01/full-issue.pdf
Description: Issue Full Text


Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Review

Publication Date: 2020-05

Volume: 102

Issue: 2

Pages: 203-220