Cyclical Informality and Unemployment ∗

@inproceedings{Bosch2009CyclicalIA,
  title={Cyclical Informality and Unemployment ∗},
  author={Mariano Bosch and Julen Esteban-Pretel},
  year={2009}
}
The proportion of informal or unprotected workers in developing countries is large. In developing economies, the fraction of informal workers can be as high as 70% of total employment. For economies with significant informal sectors, business cycle fluctuations and labor market policy interventions can have important effects on the unemployment rate, and also produce large reallocations of workers between "regulated" and "unregulated" jobs. In this paper, we report the main cyclical patterns of… CONTINUE READING

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