FIGHTING INFORMALITY IN SEGMENTED LABOR MARKETS: A general equilibrium analysis applied to Uruguay

dc.creator	Estrades,Carmen
dc.creator	Terra,María Inés
dc.date	2011-05-01
dc.date.accessioned	2019-04-25T12:41:55Z
dc.date.available	2019-04-25T12:41:55Z
dc.identifier	https://scielo.conicyt.cl/scielo.php?script=sci_arttext&pid=S0719-04332011000100001
dc.identifier.uri	http://revistaschilenas.uchile.cl/handle/2250/61228
dc.description	As in other Latin American countries, labor informality in Uruguay mainly affects less educated workers, who are also more vulnerable to poverty. We analyze the impact of some policies against informality in Uruguay, applying a general equilibrium model with a segmented labor market specification. We simulate two sets of policies: payroll tax cuts and increased enforcement in the informal sector. Both sets of policies are effective in reducing informality, but the effect on poverty is not straightforward. Poverty falls as informality is reduced; however, as enforcement policies increase hiring costs for informal firms, wages of low-skilled workers decline and poverty increases.
dc.format	text/html
dc.language	en
dc.publisher	Pontificia Universidad Católica de Chile. Instituto de Economía.
dc.relation	10.4067/S0719-04332011000100001
dc.rights	info:eu-repo/semantics/openAccess
dc.source	Latin american journal of economics v.48 n.1 2011
dc.subject	Informality
dc.subject	labor market
dc.subject	general equilibrium model
dc.subject	policies
dc.subject	poverty
dc.title	FIGHTING INFORMALITY IN SEGMENTED LABOR MARKETS: A general equilibrium analysis applied to Uruguay