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Tax-Transfers Schemes, Informality, and Search Frictions in a Small Open Economy (anglais)

This paper evaluates the impact of market-oriented structural reforms, in particular labor market policies, social assistance programs, and trade liberalization on long run unemployment, wage inequality, and the distribution of employment across sectors in a small open economy with search frictions and idiosyncratic productivity shocks. The paper builds a search and matching model of a labor market with a large informal sector and estimates the model...
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