This paper develops and estimates an equilibrium model where heterogeneous firms can exploit two margins of informality: (i) not register their business, the extensive margin; and (ii) hire workers "off the books", the intensive margin. The model encompasses the main competing frameworks for...

Brazilian labor market informality: a review of the literature. The economic literature relative to Brazilian labor market informality is very disperse and presents a significant lack of organization. In that sense, the purpose of this paper is to organize and discuss on a systematic way the...