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Title: Self employment, wage employment and informality in a developing economy
Authors: Rablen, MD
Bennett, J
Keywords: Self-employment;Wage employment;Informality
Issue Date: 2014
Publisher: Oxford University Press (OUP)
Citation: Oxford Economic Papers: 1- 18, (2014)
Abstract: We construct a simple model incorporating various urban labour market phenomena obtaining in developing economies and we give a diagrammatic formulation of the market equilibrium. Our initial formulation assumes an integrated labour market and allows for entrepreneurship, self-employment and wage employment. We then introduce labour market segmentation. In equilibrium voluntary and involuntary self-employment, formal and informal wage employment, and formal and informal entrepreneurship may all coexist. We illustrate the model by an example calibrated on Latin American data, examining individual labour market transitions and implications of education/training and labour market policies.
Description: Oxford University Press 2014. All rights reserved. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (, which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited. Oxford Economic Papers, 2014, 1–18 doi: 10.1093/oep/gpu047 Oxford Economic Papers Advance Access published December 17, 2014.
ISSN: 1464-3812
Appears in Collections:Dept of Economics and Finance Research Papers

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