Problem
(Advanced) One benefit of working in the formal labor market in some developing countries is eligibility for both unemployment insurance and retirement pensions. All else being the same, would you predict that wages are higher in the formal or the informal sector of the economy? In addition, workers in the informal sector do not pay income taxes. What is the effect of this on wage levels in the two sectors?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.