Dix-Carneiro, Rafael; Goldberg, Pinelopi; Meghir, Costas; … - 2022
. Heterogeneous firms sort into the formal or informal sector. We estimate the model using data from Brazil, and use counterfactual … unambiguously decreases informality in the tradable sector, but has ambiguous effects on aggregate informality. (2) The productivity … when informality is repressed. (4) Repressing informality increases productivity, but at the expense of employment and …