Fighting informality in segmented labor markets: a general equilibrium analysis applied to Uruguay



Título del documento: Fighting informality in segmented labor markets: a general equilibrium analysis applied to Uruguay
Revista: Latin american journal of economics
Base de datos: CLASE
Número de sistema: 000349279
ISSN: 0719-0425
Autors: 1
1
Institucions: 1Universidad de la República, Departamento de Economía, Montevideo. Uruguay
Any:
Període: May
Volum: 48
Número: 1
Paginació: 1-37
País: Chile
Idioma: Inglés
Tipo de documento: Artículo
Enfoque: Analítico, descriptivo
Resumen en inglés 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
Disciplines Economía
Paraules clau: Comercio nacional,
Uruguay,
Informalidad,
Mercado de trabajo,
Modelo de equilibrio general,
Pobreza,
Economía nacional,
Modelos econométricos
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