This paper aims to investigate the magnitude of the underestimation of household income by the Pnad and its potential effects on the measurement of the level and the evolution of Brazilian income inequality. For that, we compare the data from Pnad with the data from the Household Expenditure...

This paper aims to analyze the effects of payroll taxes on the determination of the degree of informality and the main indicators of the Brazilian labor market, considering both aggregate and disaggregate indicators by qualification level. For that purpose, a two- sector model is developed,...

Education is fundamental for social and economic development and school finance is one of the main features of an educational system. Assuming that a greater amount of resources brings more school quality, one can say that an "appropriate" primary and secondary school finance system should...

We examine the effects of international trade in the presence of a set of domestic distortions giving rise to informality, a prevalent phenomenon in developing countries. In our quantitative model, the informal sector arises from burdensome taxes and regulations that are imperfectly enforced by...

How does enforcement of labor regulations shape the labor market effects of trade? To tackle this question, we exploit the Brazilian trade liberalization episode and exogenous variation in the intensity of both the trade shock and enforcement across local labor markets. Regions with stricter...

This paper presents an exploratory analysis of the potential impacts of the Lei do Empreendedor Individual (Individual Entrepreneur Law). We intend to present evidence that helps clarify, albeit only partially, whether the policy was successful in promoting: i) micro-entrepreneurship in Brazil;...

This paper develops a two-sector matching model that incorporates the main features of Latin American labor markets. It has an innovation in its matching structure that makes it more consistent with some key stylized facts of the informal sector in these countries. The model is numerically...

Este texto desenvolve um arcabouço que permite analisar os impactos micro e macroeconômicos de diferentes políticas para formalização. O modelo é estimado e utilizado para avaliar os efeitos das duas principais abordagens para reduzir a informalidade: i) diminuir os custos da formalidade; e...

Este texto apresenta uma análise exploratória dos potenciais impactos da Lei do Empreendedor Individual (LMEI). O objetivo é trazer evidências que contribuam para esclarecer, ainda que parcialmente, se a política teve êxito em promover: i) o microempreendedorismo no Brasil; e ii) a...