Informal employment in developing countries: Opportunity or last resort?

Journal of Development Economics

Volumn 97, Issue 1, 2012, Pages 88-98

  Günther, Isabel ^a   Launov, Andrey ^b,c  

^a ETH ZURICH   (Switzerland)

^b JOHANNES GUTENBERG UNIVERSITY   (Germany)

^c UNIVERSITÉ CATHOLIQUE DE LOUVAIN   (Belgium)

Author keywords

Comparative advantage; Finite mixture model; Informal labor market; Segmentation; Selection bias

Indexed keywords

COMPARATIVE ADVANTAGE; COMPETITIVENESS; DEVELOPING WORLD; ECONOMETRICS; EMPLOYMENT; HYPOTHESIS TESTING; INFORMAL SECTOR; LABOR MARKET; NUMERICAL MODEL; SEGMENTATION;

COTE D'IVOIRE;

EID: 80054692210     PISSN: 03043878     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jdeveco.2011.01.001     Document Type: Article

References (38)

1. Amaral P., Quintin E. A competitive model of the informal sector. Journal of Monetary Economics 2006, 53(7):1541-1553.
2. Andrews D. Testing when a parameter is on the boundary of the maintained hypothesis. Econometrica 2001, 69(3):683-734.
3. Basu A. Analytical Development Economics 1997, MIT Press, Cambridge, MA.
4. Bennett J. Formality, informality, and social welfare. IZA Discussion Paper No.3550 2008.
5. Bennett J., Estrin S. Informality as a stepping stone: entrepreneurial entry in a developing economy. IZA Discussion Paper No.2950 2007.
6. Cramér, H., 1999. Mathematical Methods of Statistics. Princeton University Press, Princeton, 19th Printing.
7. Cunningham W., Maloney W.F. Heterogeneity in the Mexican micro-enterprise sector: an application of factor and cluster analysis. Economic Development and Cultural Change 2001, 50(1):131-156.
8. Dahl G. Mobility and the return to education: testing a Roy model with multiple markets. Econometrica 2002, 70(6):2367-2420.
9. De Paula A., Sheinkman J.A. The informal sector. Penn Institute for Economic Research Working Paper, 08-018 2008.
10. Dickens W.T., Lang K. A test of dual labor market theory. The American Economic Review 1985, 67(2):792-805.
11. Fields G.S. Rural-urban migration, urban unemployment and underemployment, and job-search activity in LDCs. Journal of Development Economics 1975, 2(2):165-187.
12. Fields G.S. Labour market modelling and the urban informal sector: theory and evidence. The Informal Sector Revisited 1990, Paris, OECD. D. Thurnham, B. Salome, A. Schwarz (Eds.).
13. Fields G.S. A guide to multisector labor market models. Paper prepared for the World Bank Labor Market Conference 2005, http://www.ilr.cornell.edu/directory/gsf2/downloads/Multisector_mar05.pdf.
14. Gindling T. Labor market segmentation and the determination of wages in the public, private-formal and informal sectors in San-Jose, Costa-Rica. Economic Development and Cultural Change 1991, 39(3):585-603.
15. Guha-Khasnobis B., Kanbur R., Ostrom E. Linking the Formal and Informal Economy: Concepts and Policies 2006, Oxford University Press, New York.
16. Harris J.R., Todaro M.P. Migration, unemployment and development: a two-sector analysis. The American Economic Review 1970, 60(1):126-142.
17. Hart K. Informal income opportunities and urban employment in Ghana. Journal of Modern African Studies 1973, 11(1):61-89.
18. Heckman J. Sample selection bias as a specification error. Econometrica 1979, 47(1):153-161.
19. Heckman J., Hotz V. An investigation of the labor market earnings of Panamian males. The Journal of Human Resources 1986, 21(4):507-542.
20. Heckman J., Sedlacek G. Heterogeneity, aggregation and market wage functions: an empirical model of self-selection in the labor market. Journal of Political Economy 1985, 93(6):1077-1125.
21. Hussmanns R. Defining and Measuring Informal Employment 2004, Bureau of Statistics, ILO.
22. Leroux B. Consistent estimation of a mixing distribution. Annals of Statistics 1992, 20(3):1350-1360.
23. Lewis W.A. Economic development with unlimited supplies of labour. Manchester School 1954, 22(2):139-191.
24. Little R. A note about models for selectivity bias. Econometrica 1985, 53(6):1469-1474.
25. Livingstone I. Economic Policy for Development: Selected Readings 1971, Penguin Books, Harmonds-worth.
26. Loayza N., Rigolini J. Informality trends and cycles. World Bank Policy Research Working Paper No.4078 2006.
27. Magnac T. Segmented or competitive labor markets. Econometrica 1991, 59(1):165-187.
28. Maloney W.F. Does informality imply segmentation in urban labor markets? Evidence from sectoral transitions in Mexico. World Bank Economic Review 1999, 13(2):275-302.
29. Maloney W.F. Informality revisited. World Development 2004, 32(7):1159-1178.
30. Murphy K., Topel R. Estimation and inference in two step econometric models. Journal of Business and Economics Statistics 1985, 3(4):370-379.
31. Olsen R. A least squares correction for selectivity bias. Econometrica 1980, 48(7):1815-1820.
32. Paulson A.L., Townsend R.M. Financial constraints and entrepreneurship: evidence from the Thai financial crisis. Economic Perspectives 2005, 3Q:34-48.
33. Pratap S., Quintin E. Are labor markets segmented in developing countries? A semiparametric approach. European Economic Review 2006, 50(7):1817-1841.
34. Rama M. Wage misalignment in CFA Countries. World Bank Policy Research Working Paper, WPS 1873 1998.
35. Rosenzweig M. Labor Markets in Low Income Countries. Handbook of Development Economics 1988, vol. 1. North Holland Publishing, Amsterdam.
36. Stiglitz J.E. The efficiency wage hypothesis, surplus labor, and the distribution of labour in LDCs. Oxford Economic Papers 1976, 28(2):185-207.
37. Teicher H. Identifiability of finite mixtures. Annals of Mathematical Statistics 1963, 34(4):1265-1269.
38. World Bank Informality: Exit and Exclusion 2007, World Bank, Washington D.C.