Adilya Abdrazakova

PhD Candidate in Economics at University of Alicante

Working Papers:Permalink

“Entrepreneurial Human Capital and Firm Informality” with Luis Franjo and Francesco Turino (Draft coming soon) Slides

Abstract This paper investigates the interplay between entrepreneurial investments in human capital and the informality of firms, exploring how this dynamic is influenced by a country's level of financial frictions. To this end, we build a comprehensive quantitative life-cycle general equilibrium model of entrepreneurship that accounts for credit market imperfections, limited tax enforcement, and educational decision-making. Quantitative results based on a calibrated version of the model for the Brazilian economy reveal that factors supporting increased educational attainment among entrepreneurs play a pivotal role in promoting formalization within firms. This is primarily achieved through the formation of larger, more productive firms run by educated entrepreneurs and the availability of a skilled workforce. The magnitude of this effect is intricately linked to the extent of credit market imperfections prevalent in the economy.


“Informality, children and female occupational choice” (Draft coming soon)

Abstract This paper examines the relationship between fertility and female occupational choice in Brazil, with a particular focus on informality. I document that women with children are more likely to work in the informal sector compared to women without children. To explain these patterns, I develop an OLG occupational choice model with endogenous fertility and heterogeneity in working and managerial ability. The model’s rich heterogeneity allows for a detailed analysis of the characteristics driving self-selection into different employment types. The findings highlight the role of labor market rigidities and the absence of part-time employment options, showing that women often turn to informal entrepreneurship to gain the flexibility needed when raising young children.