Exclusive Goods and Formal-Sector Employment
研究了欠发达经济体的就业不足问题如何与收入不平等相关，发现高不平等导致正规部门分化出专属商品生产商，并将大量工人挤入非正规经济。
We explore how the underemployment problem of less-developed economies is related to income inequality. Consumers have nonhomothetic preferences over differentiated products of formal-sector goods and thus inequality affects the composition of aggregate demand via the price-setting behavior of firms. We find that high inequality divides the formal sector into mass producers and exclusive producers (which serve only the rich); high inequality generates an equilibrium where many workers are crowded into the informal economy; and an increase in subsistence productivity raises the unskilled workers' wages and boosts employment due to the higher purchasing power of poorer households.