Job search and mobility in developing countries. Theory and policy implications
- 作者：Yves Zenou
- 关键词：Job matching ; Informal sector ; Policies ; Todaro paradox
- 刊名：Journal of Development Economics
- 出版年：2008
- 期刊代码：62_03043878
- 类别：soc
- 出版时间：June 2008
- 卷：86
- 期：2
- 页码：336-355
- 文件大小：509 K
摘要
A labor market model is developed in which the formal sector is characterized by search frictions whereas the informal sector is competitive. We show that there exists a unique steady-state equilibrium in this dual economy. We then consider different policies financed by a tax on firms' profits. We find that reducing the unemployment benefit or the firms' entry cost in the formal sector induces higher job creation and formal employment, reduces the size of the informal sector but has an ambiguous effect on wages. We also find that an employment/wage subsidy policy and a hiring subsidy policy have different implications. In particular, the former increases the size of the informal sector while the latter decreases it.