This paper studies the impact of product and labor market regulations on informality and unemployment in a general framework where formal and informal firms are subject to the same externalities, differing only with respect to some parameter values. Both formal and informal firms have monopoly...

This paper studies the impact of product and labor market regulations on informality and unemployment in a general framework where formal and informal firms are subject to the same externalities, differing only with respect to some parameter values. Both formal and informal firms have monopoly...

In this paper, we use a structural VAR model to identify the main determinants of the forecasting error variance of unemployment, informality and vacancies in the metropolitan region of Rio de Janeiro. The model allows us to measure the relative importance of aggregate demand, employment...