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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Replication data for: Wages and Informality in Developing Countries 0

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:  View help for Summary 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:  View help for JEL Classification
      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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V1 [2019-10-11]

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