Informality Over the Life-Cycle

Julien Albertini, Anthony Terriau
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引用次数: 4

Abstract

In developing countries, informality is mainly concentrated on younger and older workers. In this paper, we propose a dual labor market theory that highlights how frictions and taxation in the formal sector as well as educational choices interact to shape the informality rate over the life-cycle. We develop a life-cycle model with search frictions, skill heterogeneities, and endogenous educational choices. We carry out a numerical analysis and show that our model reproduces remarkably well the life-cycle patterns of informality, non-employment and formal employment in Argentina. We analyze several public policies and show that an educational grant reduces both informality and non-employment and may be fully financed by the extra tax revenues generated by the increase in formal employment and wages. Lowering taxes may achieve similar results but is detrimental for the government budget, in the case of Argentina, despite increasing the base on which they are levied.
生命周期中的非正式性
在发展中国家,非正式工作主要集中在年轻和年长的工人身上。在本文中,我们提出了一个双重劳动力市场理论,该理论强调了正规部门的摩擦和税收以及教育选择如何相互作用,从而影响了整个生命周期中的非正规率。我们开发了一个包含搜索摩擦、技能异质性和内生教育选择的生命周期模型。我们进行了数值分析,并表明我们的模型非常好地再现了阿根廷非正式、非就业和正式就业的生命周期模式。我们分析了几项公共政策,并表明教育补助金可以减少非正规就业和非就业,并且可以由正式就业和工资增加所产生的额外税收收入全额资助。降低税收可能会达到类似的效果,但对政府预算是有害的,就阿根廷而言,尽管增加了征税的基础。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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