), the tax wedge, the unemployment benefit level, unemployment benefit duration and union density, are assembled at the IZA … size of the informal economy. There is also evidence that a larger tax wedge increases informality. The tax wedge … with the literature, which identifies labor market regulation and the tax wedge as important drivers of informality. …

), the tax wedge, the unemployment benefit level, unemployment benefit duration and union density, are assembled at the IZA … size of the informal economy. There is also evidence that a larger tax wedge increases informality. The tax wedge … with the literature, which identifies labor market regulation and the tax wedge as important drivers of informality. …

disemployment effects. Regions with weaker enforcement had no employment losses but substantial increases in informality. All … effects are concentrated on unskilled workers, with no effects on skilled workers. The results indicate that informality acts …