Workforce Composition, Productivity, and Labour Regulations in a Compensating Differentials Theory of Informality

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dc.contributor.authorRODRIGO REIS SOARES
dc.contributor.authorHaanwinckel, Daniel
dc.coverage.cidades.l.pt_BR
dc.coverage.paisEstados Unidospt_BR
dc.creatorHaanwinckel, Daniel
dc.date.accessioned2022-12-19T13:44:18Z
dc.date.available2022-12-19T13:44:18Z
dc.date.issued2021
dc.description.notesEvidênciapt_BR
dc.description.otherWe develop a search model of informal labour markets with realistic labour regulations, including minimum wage, and heterogeneous workers and firms. Smaller firms and lower wages in the informal sector emerge endogenously as firms and workers decide whether to comply with regulations. Because skilled and unskilled workers are imperfect substitutes in production, the model uniquely captures the informality consequences of shocks that affect returns to skill, such as rising educational levels. The model also reproduces empirical patterns incompatible with other frameworks: the presence of skilled and unskilled workers in the formal and informal sectors, the rising share of skilled workers by firm size, and formal and firm-size wage premiums that vary by skill level. We estimate the model using 2003 data from Brazil and show that it successfully predicts labour market changes observed between 2003 and 2012. Under a range of different assumptions, changes in workforce composition appear as the main drivers of the reduction in informality over this period. Policy simulations using the estimated model suggest that progressive payroll taxes are a cost-effective way to reduce informality.pt_BR
dc.format.extentp. 2970–3010pt_BR
dc.format.mediumDigitalpt_BR
dc.identifier.doihttps://doi.org/10.1093/restud/rdab017pt_BR
dc.identifier.issn0034-6527pt_BR
dc.identifier.issn1467-937Xpt_BR
dc.identifier.issue6pt_BR
dc.identifier.urihttps://repositorio.insper.edu.br/handle/11224/5095
dc.identifier.volume88pt_BR
dc.language.isoInglêspt_BR
dc.publisherOxford University Presspt_BR
dc.relation.ispartofReview of economic studiespt_BR
dc.rights.licenseO INSPER E ESTE REPOSITÓRIO NÃO DETÊM OS DIREITOS DE USO E REPRODUÇÃO DOS CONTEÚDOS AQUI REGISTRADOS. É RESPONSABILIDADE DO USUÁRIO VERIFICAR OS USOS PERMITIDOS NA FONTE ORIGINAL, RESPEITANDO-SE OS DIREITOS DE AUTOR OU EDITOR.pt_BR
dc.titleWorkforce Composition, Productivity, and Labour Regulations in a Compensating Differentials Theory of Informalitypt_BR
dc.typejournal article
dspace.entity.typePublication
local.subject.cnpqCiências Sociais Aplicadaspt_BR
local.typeArtigo Científicopt_BR
relation.isAuthorOfPublicationa278df46-a119-4f77-8711-a1c508e078e3
relation.isAuthorOfPublication.latestForDiscoverya278df46-a119-4f77-8711-a1c508e078e3
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