Inequality and Employment in a Dual Economy
This paper studies the impact of an increase in the enforcement of labor regulations on unemployment and inequality, using city level data from Brazil. We find that stricter enforcement (affecting the payment of mandated benefits to formal workers) leads to: higher unemployment, less income inequality, a higher proportion of formal employment, and a lower formal wage premium. Our results are consistent with a model where stricter enforcement causes a contraction in labor demand in both the formal and informal sectors; and where workers value mandated benefits highly, so that there is an increase in the formal sector labor supply, an increase in the willingness to become unemployed to search for a formal sector job, and a decrease in labor supply to the informal sector.
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| Format: | Working Paper biblioteca |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2007-11-17
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| Subjects: | INEQUALITY, EMPLOYMENT, LABOR REGULATIONS, INFORMAL LABOR, DUAL ECONOMY, LABOR MARKET, |
| Online Access: | http://documents.worldbank.org/curated/en/408911495747492410/Inequality-and-Employment-in-a-Dual-Economy-Enforcement-of-Labor-Regulation-in-Brazil https://hdl.handle.net/10986/28270 |
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dig-okr-10986282702024-08-07T19:40:09Z Inequality and Employment in a Dual Economy Enforcement of Labor Regulation in Brazil Carneiro, Pedro Almeida, Rita INEQUALITY EMPLOYMENT LABOR REGULATIONS INFORMAL LABOR DUAL ECONOMY LABOR MARKET This paper studies the impact of an increase in the enforcement of labor regulations on unemployment and inequality, using city level data from Brazil. We find that stricter enforcement (affecting the payment of mandated benefits to formal workers) leads to: higher unemployment, less income inequality, a higher proportion of formal employment, and a lower formal wage premium. Our results are consistent with a model where stricter enforcement causes a contraction in labor demand in both the formal and informal sectors; and where workers value mandated benefits highly, so that there is an increase in the formal sector labor supply, an increase in the willingness to become unemployed to search for a formal sector job, and a decrease in labor supply to the informal sector. 2017-09-11T14:35:53Z 2017-09-11T14:35:53Z 2007-11-17 Working Paper Document de travail Documento de trabajo http://documents.worldbank.org/curated/en/408911495747492410/Inequality-and-Employment-in-a-Dual-Economy-Enforcement-of-Labor-Regulation-in-Brazil https://hdl.handle.net/10986/28270 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank application/pdf text/plain World Bank, Washington, DC |
| institution |
Banco Mundial |
| collection |
DSpace |
| country |
Estados Unidos |
| countrycode |
US |
| component |
Bibliográfico |
| access |
En linea |
| databasecode |
dig-okr |
| tag |
biblioteca |
| region |
America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
English en_US |
| topic |
INEQUALITY EMPLOYMENT LABOR REGULATIONS INFORMAL LABOR DUAL ECONOMY LABOR MARKET INEQUALITY EMPLOYMENT LABOR REGULATIONS INFORMAL LABOR DUAL ECONOMY LABOR MARKET |
| spellingShingle |
INEQUALITY EMPLOYMENT LABOR REGULATIONS INFORMAL LABOR DUAL ECONOMY LABOR MARKET INEQUALITY EMPLOYMENT LABOR REGULATIONS INFORMAL LABOR DUAL ECONOMY LABOR MARKET Carneiro, Pedro Almeida, Rita Inequality and Employment in a Dual Economy |
| description |
This paper studies the impact of an
increase in the enforcement of labor regulations on
unemployment and inequality, using city level data from
Brazil. We find that stricter enforcement (affecting the
payment of mandated benefits to formal workers) leads to:
higher unemployment, less income inequality, a higher
proportion of formal employment, and a lower formal wage
premium. Our results are consistent with a model where
stricter enforcement causes a contraction in labor demand in
both the formal and informal sectors; and where workers
value mandated benefits highly, so that there is an increase
in the formal sector labor supply, an increase in the
willingness to become unemployed to search for a formal
sector job, and a decrease in labor supply to the informal sector. |
| format |
Working Paper |
| topic_facet |
INEQUALITY EMPLOYMENT LABOR REGULATIONS INFORMAL LABOR DUAL ECONOMY LABOR MARKET |
| author |
Carneiro, Pedro Almeida, Rita |
| author_facet |
Carneiro, Pedro Almeida, Rita |
| author_sort |
Carneiro, Pedro |
| title |
Inequality and Employment in a Dual Economy |
| title_short |
Inequality and Employment in a Dual Economy |
| title_full |
Inequality and Employment in a Dual Economy |
| title_fullStr |
Inequality and Employment in a Dual Economy |
| title_full_unstemmed |
Inequality and Employment in a Dual Economy |
| title_sort |
inequality and employment in a dual economy |
| publisher |
World Bank, Washington, DC |
| publishDate |
2007-11-17 |
| url |
http://documents.worldbank.org/curated/en/408911495747492410/Inequality-and-Employment-in-a-Dual-Economy-Enforcement-of-Labor-Regulation-in-Brazil https://hdl.handle.net/10986/28270 |
| work_keys_str_mv |
AT carneiropedro inequalityandemploymentinadualeconomy AT almeidarita inequalityandemploymentinadualeconomy AT carneiropedro enforcementoflaborregulationinbrazil AT almeidarita enforcementoflaborregulationinbrazil |
| _version_ |
1807156276270989312 |