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Theories and Models Regarding Formal / Informal Duality of the Labor Market

Author

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  • Cristian MARINESCU

    (Romanian Court of Accounts)

Abstract

This work proposes an incursion, from a theoretical point of view, in the specialized literature that has, over time, approached the labor market through the formal / informal duality. From the review of the specialized literature, I found that the studies on the duality of the labor market were based on aspects related to: the bureaucracy or the regulations existing on the two types of labor markets (formal/informal), productivity, rigidity, of the salaries practiced on the two types of markets, as well as the option of employees for formal or informal, depending on the cost benefit analysis. In this paper we intend to detail the models and theories with specialized literature is currently operating to characterize the labor market, through the formal/informal duality, respectively models based on the aspect of: bureaucracy /market regulations (Hart, Soto, ILO), productivity (Lewis), rigidity (Joshi, Hield), wages (Kuznets, Field) or employee choice (Maloney, Perry).

Suggested Citation

  • Cristian MARINESCU, 2019. "Theories and Models Regarding Formal / Informal Duality of the Labor Market," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 20(4), pages 428-436, October.
    • Handle: RePEc:rom:rmcimn:v:20:y:2019:i:4:p:428-436
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    References listed on IDEAS

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    1. Kanbur, Ravi, 2009. "Conceptualising Informality: Regulation and Enforcement," IZA Discussion Papers 4186, Institute of Labor Economics (IZA).
    2. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
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    More about this item

    Keywords

    duality of the labor market; informality.;

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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