ABSTRACT – In most developing countries, job regulations and the justice branch interfere on several aspects of labor contracts. Inspired by this fact, we build a model that explores the role of labor courts in the determination of the diference between formal and informal wages. We show that the presence of active labor courts in an environment where labor relations are subject to asymmetries of information reproduces features documented by the empirical literature. The main implications of our model are tested using Brazilian data.
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WP 112 Como as condições do mercado de trabalho influenciam as transições do desemprego para o emprego?
abril 23, 2018
janeiro 6, 2009