%0 Report %A Charlot, Olivier %A Malherbet, Franck %A Ulus, Mustafa %T Efficiency in a Search and Matching Economy with a Competitive Informal Sector %D 2012 %8 2012 Oct %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 6935 %U https://www.iza.org/index.php/publications/dp6935 %X We consider a dual labor market with a frictional formal sector and a competitive informal sector. We show that the size of the informal sector is generally too large compared to the optimal allocation of the workers. It follows that our results give a rationale to informality-reducing policies. %K search and matching models %K informality %K efficiency