This paper analyzes the cyclical properties of worker flows in Brazil and Mexico, two important developing countries with large unregulated or “informal” sectors. It generates three stylized facts that are critical to the accurate modeling of the sector and which suggest the need to rethink the approaches to date. First, the unemployment rate is countercyclical essentially because job separations of informal workers increase dramatically in recessions...
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2008/06/01
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Documento de trabalho sobre pesquisa de políticas
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WPS4648
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1
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1
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2010/07/01
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Disclosed
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Cyclical movements in unemployment and informality in developing countries
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unemployment rate
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