TY  - RPRT
        AU  - Günther, Isabel
AU  - Launov, Andrey
        TI  - Competitive and Segmented Informal Labor Markets
        PY  - 2006/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2349
        UR  - https://www.iza.org/index.php/publications/dp2349
        AB  - It has been recently argued that the informal sector of the labor market in a developing economy shows a dual structure with one part of it being competitive to the formal sector and another part being the result of market segmentation. To test this hypothesis we formulate an econometric model which allows for a heterogeneous informal sector with unobserved individual affiliation and which takes into account selection bias induced by the employment decision of individuals. Our test results for the urban labor market in Côte d'Ivoire indeed show existence of both competitive and segmented employment in the informal sector.
        KW  - segmentation
KW  - informal labor market
KW  - comparative advantage
KW  - selection bias
KW  - developing economy
KW  - finite mixture models
KW  - latent structure
        ER  -