The business cycle consequences of informal labor markets

摘要: Title of dissertation: THE BUSINESS CYCLE CONSEQUENCES OF INFORMAL LABOR MARKETS Alan Finkelstein Shapiro Doctor Philosophy, 2013 Dissertation directed by: Professor S. Boragan Aruoba John C. Haltiwanger Department Economics This dissertation explores the connection between structure labor markets and business cycle dynamics, with a focus on informality. The first chapter summarizes main contributions dissertation. Institutional quality is one most important determinants cross-country differences in second analyzes link institutions, size informal sector, aggregate volatility. I build search matching model that captures positive sector consumption investment volatility data. In addition, show root cause changes matters for establishing relationship (1) informality long-run macroeconomic outcomes (2) For same change size, different parameters institutional have contrasting quantitative implications steady state unemployment economy. These results highlight importance identifying specific source behind to characterize dynamics. third share self-employment economy pace economic recoveries. Self-employment comprises an employment many countries. Recent studies document expands during downturns, fact arises from higher transition rates out into recessions. Furthermore, countries shares exhibit lower output persistence over cycle. novel frictional where individuals can be self-employed or employed salaried firms. economies larger faster recoveries following negative economy-wide productivity shock. Differences ease entry as recovers play key role explaining market successfully some cyclical patterns absent existing models, well