gulyssea.bsky.social
Associate Professor and Director of the PhD program at UCL. Research Fellow at IFS, and Research Affiliate at CEPR and BREAD. Doing research on Economic Development. https://sites.google.com/view/gabriel-ulyssea
👤 Joined on 24 April 2025
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@gulyssea.bsky.socialBased on a brand new dynamic model of firms with informality, we show that the informal sector acts as a stepping-stone to formality, but also reduces the economic gains from migration in equilibrium.
Show PostDownward nominal wage rigidity in the formal sector is key to this result: the effects are weaker in the short-run, when real wages cannot adjust with inflation, or in places where minimum wages are more binding.
Show PostDo you expect rural-urban migration to increase urban informality in developing countries? Our forthcoming paper at @ecmaeditors.bsky.social with @gulyssea.bsky.social finds the opposite. We show that between 2000 and 2010 drought-induced migration decreased informality in Brazilian cities.
Show Post@gulyssea.bsky.social @imanelici.bsky.social @alempeter.bsky.social @cynthiakinnan.bsky.social @johnvanreenen.bsky.social @virginiaminni.bsky.social @tommasoporzio.bsky.social
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