All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Arturo Anton and Rodolfo Gutierrez
''Informality and Productivity''
( 2016, Vol. 36 No.1 )
We examine the role of productivity differences across countries to explain the negative relationship between GDP per capita and informality in the data. Through the lens of a formal-informal two-sector model, we find that differences in overall and sector-specific productivities replicate the relationship between informality and GDP per capita and may explain up to 40 percent of the differences in informality. The dispersion in overall productivity induces most of the variation in output per worker in the informal sector.
Keywords: Informal sector, productivity, GDP per capita
JEL: O4 - Economic Growth and Aggregate Productivity: General
E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
Manuscript Received : Feb 16 2015 Manuscript Accepted : Feb 11 2016

  This abstract has been downloaded 1512 times                The Full PDF of this paper has been downloaded 154227 times