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- 2007617059 abstract "Recessions and policy interventions in labour markets in developing countries are characterized not only by changes in the unemployment rate, but also by changes in the proportion of formal or protected jobs. This reallocation between formal and informal jobs is large and occurs mainly because the job finding rate of formal jobs reacts substantially more than the job finding rate of informal jobs. This paper presents a search and matching model to capture this fact. I assume that firms operate the within firm margin of formality, choosing to legalize only those matches that are good enough to compensate the costs of formality. In this framework, recessions or stricter regulations in the labour market trigger two effects. As expected, they lower the incentives to post vacancies (meeting effect), but also affect the firms' hiring standards, favouring informal contracts (offer effect). This new channel sheds light on how the actions of policy makers alter the outcomes in an economy with informal jobs. For instance, attempts to protect employment by increasing .ring costs will reallocate workers to informal jobs, where job separation is high. They are also likely to increase unemployment.".
- 2007617059 contributor B11047200.
- 2007617059 contributor B11047201.
- 2007617059 created "c2006.".
- 2007617059 date "2006".
- 2007617059 date "c2006.".
- 2007617059 dateCopyrighted "c2006.".
- 2007617059 description "Includes bibliographical references.".
- 2007617059 description "Mode of access: World Wide Web.".
- 2007617059 description "Recessions and policy interventions in labour markets in developing countries are characterized not only by changes in the unemployment rate, but also by changes in the proportion of formal or protected jobs. This reallocation between formal and informal jobs is large and occurs mainly because the job finding rate of formal jobs reacts substantially more than the job finding rate of informal jobs. This paper presents a search and matching model to capture this fact. I assume that firms operate the within firm margin of formality, choosing to legalize only those matches that are good enough to compensate the costs of formality. In this framework, recessions or stricter regulations in the labour market trigger two effects. As expected, they lower the incentives to post vacancies (meeting effect), but also affect the firms' hiring standards, favouring informal contracts (offer effect). This new channel sheds light on how the actions of policy makers alter the outcomes in an economy with informal jobs. For instance, attempts to protect employment by increasing .ring costs will reallocate workers to informal jobs, where job separation is high. They are also likely to increase unemployment.".
- 2007617059 description "System requirements: Adobe Acrobat Reader.".
- 2007617059 hasFormat "Also available in print.".
- 2007617059 identifier abstract.asp?index=2425.
- 2007617059 identifier dp0761.pdf.
- 2007617059 isFormatOf "Also available in print.".
- 2007617059 isPartOf "CEP discussion paper ; no. 761".
- 2007617059 issued "2006".
- 2007617059 issued "c2006.".
- 2007617059 language "eng".
- 2007617059 publisher "London : Centre for Economic Performance, London School of Economics and Political Science,".
- 2007617059 relation "Also available in print.".
- 2007617059 requires "Mode of access: World Wide Web.".
- 2007617059 requires "System requirements: Adobe Acrobat Reader.".
- 2007617059 subject "HC10".
- 2007617059 subject "Informal economy; Search models; Labour markets ; Regulations".
- 2007617059 title "Job creation and job destruction in the presence of informal labour markets [electronic resource] / Mariano Bosch.".
- 2007617059 type "text".