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Strict Duality and Overlapping Productivity Distributions between Formal and Informal Firms

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dc.contributor.eventThe Economics of Informality Conference 2018spa
dc.creatorSchipper, Tyler C.
dc.creatorAllen, Jeffrey
dc.creatorNataraj, Shanthi
dc.date.accessioned2018-08-03T15:49:41Z
dc.date.available2018-08-03T15:49:41Z
dc.date.created2018-05-28
dc.date.issued2018
dc.description.abstractThis paper develops a multi-industry general equilibrium model where en-trepreneurs within each industry can decide to operate formally or informally.The model yields a rich set of predictions about how firms interact in the econ-omy. It reconciles the seeming contradiction between the canonical model ofstrict productivity dualism and the empirical literature that shows an aggre-gate overlap in productivity across the formal and informal sectors. We showthat this “contradiction” is a natural outcome of fixed costs varying acrossindustries. Our model is consistent with a set of stylized fact derived fromWorld Bank Enterprise Surveys. They show that 51% of formal firms reportcompeting with informal firms. Competition decreases with a country’s de-velopment, and larger firms face less competition from informal firms. Thesefacts, in tandem with out model, highlight the complexity of informality indeveloping countries.eng
dc.format.mimetypeapplication/pdf
dc.identifier.doihttps://doi.org/10.48713/10336_18254
dc.identifier.urihttp://repository.urosario.edu.co/handle/10336/18254
dc.language.isoeng
dc.publisher.otherUniversidad del Rosario. Facultad de Economíaspa
dc.rightsAtribución-NoComercial-CompartirIgual 2.5 Colombiaspa
dc.rights.accesRightsinfo:eu-repo/semantics/openAccess
dc.rights.accesoAbierto (Texto Completo)spa
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/2.5/co/
dc.source.instnameinstname:Universidad del Rosariospa
dc.source.reponamereponame:Repositorio Institucional EdocURspa
dc.subjectInformalidadspa
dc.subjectCompetenciaspa
dc.subjectVista doblespa
dc.subjectProductividadspa
dc.subject.ddcEconomía laboral
dc.subject.keywordInformalityeng
dc.subject.keywordCompetitioneng
dc.subject.keywordDual vieweng
dc.subject.keywordProductivityeng
dc.subject.lembEconomía informalspa
dc.subject.lembCongresos, conferencias, etc.spa
dc.titleStrict Duality and Overlapping Productivity Distributions between Formal and Informal Firmsspa
dc.typeconferenceObjecteng
dc.type.hasVersioninfo:eu-repo/semantics/publishedVersion
dc.type.spaDocumento de conferenciaspa
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The Economics of Informality Conference 2018