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Replication data for: Wages and Informality in Developing Countries

Resource Type
  • Meghir, Costas
  • Narita, Renata
  • Robin, Jean-Marc
Publication Date
  • Abstract

    We develop an equilibrium wage-posting model with heterogeneous firms that decide to locate in the formal or the informal sector and workers who search randomly on and off the job. We estimate the model on Brazilian labor force survey data. In equilibrium, firms of equal productivity locate in different sectors, a fact observed in the data. Wages are characterized by compensating differentials. We show that tightening enforcement does not increase unemployment and increases wages, total output, and welfare by enabling better allocation of workers to higher productivity jobs and improving competition in the formal labor market. (JEL E26, J24, J31, J46, O15, O17)
  • Is supplement to
    DOI: 10.1257/aer.20121110 (Text)
  • Meghir, Costas, Renata Narita, and Jean-Marc Robin. “Wages and Informality in Developing Countries.” American Economic Review 105, no. 4 (April 2015): 1509–46.
    • ID: 10.1257/aer.20121110 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12

Meghir, Costas; Narita, Renata; Robin, Jean-Marc (2015): Replication data for: Wages and Informality in Developing Countries. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.