This paper explores the effects of a large minimum wage hike on firm exits from the formal economy, and its associated impacts on employment and informality. It uses an exceptionally rich linked employer-employee dataset on the universe of formal firms and workers in a developing economy. Data...

After the tragic factory collapse of Rana Plaza in 2013, both the direct reforms and indirect responses of retailers have plausibly affected workers in the Ready Made Garment (RMG) sector in Bangladesh. These responses included a minimum wage increase, high profile but voluntary audits, and an...

This paper explores the effects of a large increase in the national minimum wage in Turkey on firms' exit rates from the formal economy. The analysis exploits a unique, linked employer-employee panel data set of the universe of registered firms in all sectors of the economy. The causal impact of...

After the tragic factory collapse of Rana Plaza in 2013, the direct reforms and indirect responses of retailers have both plausibly affected workers in the ready-made garment sector in Bangladesh. These reforms include a minimum wage increase, high profile but voluntary audits, and an increased...