TY  - RPRT
        AU  - Flabbi, Luca
AU  - Tejada, Mauricio
        TI  - Are Informal Self-Employment and Informal Employment as Employee Behaviorally Distinct Labor Force States?
        PY  - 2023/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16225
        UR  - https://www.iza.org/publications/dp16225
        AB  - The paper performs both a parametric and non-parametric analysis to address a fundamental question in the growing literature using search models to study labor market informality: should informal self-employment and informal employment as employee be considered two different labor market states? Both the non-parametric and the parametric tests strongly reject equality between the two states, cautioning against aggregating them in a common "informality state." The parametric model indicates the source of the difference in the high dispersion of informal self-employment income and in the low duration of informal employee jobs. 
        KW  - labor market frictions
KW  - search and matching
KW  - informality
KW  - self-employment
        ER  -