Enforcement of Labor Regulation and Informality

Enforcement of labor regulations in the formal sector may drive workers to informality because they increase the costs of formal labor. But better compliance with mandated benefits makes it attractive to be a formal employee. We show that, in locations with frequent inspections, workers pay for mand...

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Bibliographic Details
Main Authors: Almeida, Rita, Carniero, Pedro
Language:en_US
Published: American Economic Association 2014
Subjects:
Online Access:http://hdl.handle.net/10986/17924