@TechReport{iza:izadps:dp3145,
            	author={Badaoui, Eliane El and Strobl, Eric and Walsh, Frank},
            	title={The Formal Sector Wage Premium and Firm Size},
            	year={2007},
	month={Nov},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={3145},
            	url={https://www.iza.org/index.php/publications/dp3145},
	abstract={We show theoretically that when larger firms pay higher wages and are more likely to be caught defaulting on labour taxes, then large high-wage firms will be in the formal sector and small low-wage firms will be in the informal sector. The formal sector wage premium is thus just a firm size wage differential. Using data from the South African labour force survey we illustrate that firm size is indeed the key variable determining whether a formal sector premium exists.},
	keywords={informal sector;wage premium;firm size},
            }