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This paper studies the effects of the introduction of unemployment compensation (UC) in countries characterized by pervasive informality. We provide a simple framework to analyze the impact of UC on the allocation of workers between formal and informal activities, as well as the allocation of workers between sectors featuring different incentives to go informal. We show that a reasonable amount of UC may reduce informality, while larger amounts of UC induce large disincentives to go formal because of the level of taxation involved. We also argue that the financing of UC should be part and parcel of a well- conceived UC system. We show that UC finance based on payroll taxes is likely to entail an excess level of informality resulting from cross-subsidies between heterogenous sectors. The introduction of a simple layoff tax meant to finance the UC system is then shown to reduce informality, hence highlighting how a well-designed financing scheme may be used as a supplementary instrument to curb informality.

This article aims to confront Foucault’s (2001) concept of heterotopia (2001) – the physical location of an utopia – with a "new, "informal and non-institutionalized retail space for gleaning second hand items : the sidewalk during the time of bulky item collection.A qualitative survey conducted with 17 urban gleaners shows that this place may be indicative of some contemporary utopias. Drawing on six distinctive features that define an heterotopia, we show that the sidewalk 1) is both an heterotopia of crisis and deviation; 2) changed function over time in becoming now a place for provisioning; 3) is a juxtaposition of different places, places of transit and supply, but also of personal stories via those of objects and/or encounters; 4) is an heterochrony, i.e. a moment that suspends time and traditional practices; 5) is a closed space between the gleaner and the real and imagined gaze of the other; and finally 6) has a function of supply, but also of denounciation of the consumption system. The concept of heterotopia finally underscores the importance of space in the field of consumption, not only with places being the unit of the analysis, but also in the form of dialogics that these "counter-sites" maintain with more conventional forms., Cet article a pour objectif de confronter le concept d'hétérotopie de Foucault (2001) – lieu physique d'une utopie – à un « nouveau » lieu de distribution d'objets d’occasion, informel et non institutionnalisé comme tel : le trottoir lors des jours d'encombrants. Une enquête qualitative constituée de 17 entretiens auprès de glaneurs urbains d'objets montre que ce lieu peut être révélateur de certaines utopies contemporaines. En reprenant les six traits distinctifs d'une hétérotopie, nous montrons que le trottoir 1) est à la fois une hétérotopie de crise et de déviation; 2) a changé de fonction en étant désormais un lieu d’approvisionnement ; 3) est une juxtaposition de lieux, lieux de passage et d’approvisionnement, mais également d'histoires personnelles via celles des objets, voire de rencontres ; 4) est une hétérochronie, c'est à dire un moment qui suspend le temps et les pratiques traditionnelles ; 5) est un espace fermé entre le glaneur et le regard d'autrui réel et imaginé et 6) a une fonction d'approvisionnement mais aussi de dénonciation du système de consommation. Le concept d’hétérotopie souligne l'intérêt d'une meilleure prise en compte de l'espace dans le champ de la consommation, pas seulement en tant que lieu pris comme unité d'analyse, mais aussi sous la forme du dialogue que ces « contre-emplacements » entretiennent avec les formes conventionnelles qu’ils contestent.

We consider a dual labor market with a frictional formal sector and a competitive informal sector. We show that the size of the informal sector is generally too large compared to the optimal allocation of the workers. It follows that our results give a rationale to informality-reducing policies. (C) 2012 Elsevier B.V. All rights reserved.

This paper studies the impact of product and labor market regulations on informality and unemployment in a general framework where formal and informal firms are subject to the same externalities, differing only with respect to some parameter values. Both formal and informal firms have monopoly power in the goods market, they are subject to matching friction in the labor market, and wages are determined through bargaining between large firms and their workers. The informal sector is found to be endogenously more competitive than the formal one. We find that lower strictness of product or labor market regulations lead to a simultaneous reduction in informality and unemployment. The difference between these two policy options lies on their effect on wages. Lessening product market strictness increases wages in both sector but also increases the formal sector wage premium. The opposite is true for labor market regulation. Finally, we show that the so-called overhiring externality due to wage bargaining translates into a smaller relative size of the informal sector.

Provides some theoretical developments on the topic of the performativity of economics., Propose quelques développements théoriques sur le thème de la performativité des sciences économiques.