Namazie, Ceema Zahra (2003) The effect of unobservables on labour supply decisions: the formal and informal sector during transition. CASEpaper (72). Centre for Analysis of Social Exclusion, London, UK.
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Abstract
The transition from a command economy in the FSU resulted in increased activities in the informal sector. However despite prevalent delays in wage payments many workers were still observed to be working full-time in the formal sector. Here a model of workers' labour supply decisions incorporates unobservable features of informal activities in both sectors; namely unofficial payments within the formal sector and stigma associated with the informal sector. These extensions result in non-trivial changes to workers' reservation wage conditions and reconcile the unexpected outcomes of workers' labour supply decisions. A limited empirical analysis of Kyrgyz data, for 1993 and 1996, provides support for the implications of this framework.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://sticerd.lse.ac.uk/case |
| Additional Information: | © 2003 Ceema Zahra Namazie |
| Divisions: | Centre for Analysis of Social Exclusion |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor |
| JEL classification: | P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P23 - Factor and Product Markets; Industry Studies; Population J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J22 - Time Allocation and Labor Supply |
| Date Deposited: | 02 Jul 2008 10:41 |
| Last Modified: | 13 Sep 2024 19:51 |
| URI: | http://eprints.lse.ac.uk/id/eprint/6329 |
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