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...

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 evaluates critically the conventional hierarchical representation of the formal/informal employment dualism, which depicts formal employment as extensive and positively contributing to economic development and social cohesion, and the separate realm of informal employment as weaker,...

PurposeRecently when studying mainstream (legitimate) entrepreneurs, the distinction between ‘necessity-driven' entrepreneurs pushed into entrepreneurship because other options for work are absent or unsatisfactory, and ‘opportunity-driven' entrepreneurs pulled into entrepreneurship to...

Purpose – This article explores the criminal workplace activities of both employers and employees in Ukrainian enterprises. It challenges traditional definitions of corruption and suggests that the practices that can be observed fit into the category of organised crime because of the country's...

We build an equilibrium model of a small open economy with labor market frictions and imperfectly enforced regulations. Heterogeneous firms sort into the formal or informal sector. We estimate the model using data from Brazil, and use counterfactual simulations to understand how trade affects...

We build an equilibrium model of a small open economy with labor market frictions and imperfectly enforced regulations. Heterogeneous firms sort into the formal or informal sector. We estimate the model using data from Brazil, and use counterfactual simulations to understand how trade affects...

We build an equilibrium model of a small open economy with labor market frictions and imperfectly enforced regulations. Heterogeneous firms sort into the formal or informal sector. We estimate the model using data from Brazil, and use counterfactual simulations to understand how trade affects...

The recognition that many inhabitants across the world rely on the informal economy for their livelihood has led to a refutation that this sphere is a leftover from pre-capitalism and the advent of a range of competing theorizations of the informal economy as either reinforcing the disparities...

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 main pieces of literature concerning informality in the Brazilian...