Social Norm, the Informal Sector and Unemployment

Abstract

While examining the macroeconomic e¤ects of increased government control of the informal sector, this paper develops a two-sector general equilibrium model featuring matching frictions on the labour market and a social norm. Conducting informal work, or employing a worker informally , is associated with expected punishment fees and payments of a moral cost… (More)

2 Figures and Tables

Topics

  • Presentations referencing similar topics