Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/290144 
Year of Publication: 
2024
Series/Report no.: 
Texto para Discussão No. 2977
Publisher: 
Instituto de Pesquisa Econômica Aplicada (IPEA), Brasília
Abstract: 
We evaluate the effects of a large-scale enforcement intervention on formal labor flows. The initiative combined a communication component (an official letter/e-mail sent to registered employers) and a punishment component (face-to-face inspections). Using two identification strategies (regression discontinuity design - RDD and difference-in-differences - DiD) we isolate the effects of each component keeping the other constant. Results show that both components increased the formalization of previous informal workers but did not change regular, formal labor demand. Effects are observed only for the short run, indicating that employers reacted to each component in the aftermath of the intervention and then moved back to their usual compliance behavior.
Subjects: 
enforcement intervention
labor inspection
formal employment
JEL: 
J88
J46
H83
Persistent Identifier of the first edition: 
URL of the first edition: 
Creative Commons License: 
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Document Type: 
Working Paper

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