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The informal sector, firm dynamics, and institutional participation (Английский)

The informal microfirm sector is believed to be large, accounting for 20-40 percent of employment in many developing countries. The literature tends to view the sector as the disadvantaged sector of a segmented labor market, as existing to evade government regulations, or as constrained by lack of access to government services. The authors offer a unique theoretical framework to analyze informality and microfirm growth behavior -- one that emphasizes...
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