Replication data for: Wages and Informality in Developing Countries
Principal Investigator(s): View help for Principal Investigator(s) Costas Meghir; Renata Narita; Jean-Marc Robin
Version: View help for Version V1
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| Meghir-Narita-Robin-data-and-code | 10/11/2019 11:55:PM | ||
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Project Citation:
Meghir, Costas, Narita, Renata, and Robin, Jean-Marc. Replication data for: Wages and Informality in Developing Countries. Nashville, TN: American Economic Association [publisher], 2015. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112889V1
Project Description
Summary:
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We develop an equilibrium wage-posting model with heterogeneous
firms that decide to locate in the formal or the informal sector and
workers who search randomly on and off the job. We estimate the
model on Brazilian labor force survey data. In equilibrium, firms of
equal productivity locate in different sectors, a fact observed in the
data. Wages are characterized by compensating differentials. We show
that tightening enforcement does not increase unemployment and
increases wages, total output, and welfare by enabling better allocation
of workers to higher productivity jobs and improving competition
in the formal labor market. (JEL E26, J24, J31, J46, O15, O17)
Scope of Project
JEL Classification:
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E26 Informal Economy; Underground Economy
J24 Human Capital; Skills; Occupational Choice; Labor Productivity
J31 Wage Level and Structure; Wage Differentials
J46 Informal Labor Markets
O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
E26 Informal Economy; Underground Economy
J24 Human Capital; Skills; Occupational Choice; Labor Productivity
J31 Wage Level and Structure; Wage Differentials
J46 Informal Labor Markets
O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
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