Resource title

Competitive and Segmented Informal Labor Markets

Resource image

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Resource description

It has recently been argued that the informal sector in developing countries shows a dual structure, with part of the informal sector being competitive to the formal sector and part of the informal sector being the result of market segmentation. We formulate an econometric model to test this hypothesis. The model allows for sector multiplicity with unobserved sector affiliation in the informal sector and takes into account sample selection bias induced by the employment decision of individuals. An estimation of the model for the urban labor market in C te d'Ivoire shows that the informal labor market is indeed composed of two segments with both competitive as well as segmented employment.

Resource author

Andrey Launov, Isabel G√ľnther

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/19843

Resource license

Adapt according to the presented license agreement and reference the original author.