This paper works at the interface of the literature exploring the raison d'etre of the informal labor market and that explaining the real exchange rate appreciations occurring in many Latin American countries during periods of reform. The authors first build a small country-Australian style model where the informal sector is seen as an unregulated non-tradables sector, augmented by heterogeneity in entrepreneurial ability and capital adjustment costs...
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INFORMATION
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2002/02/07
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Document de travail de recherche sur les politiques
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WPS2771
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1
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1
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2010/07/01
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Exchange rate appreciations, labor market rigidities, and informality
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formal sector
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