Seguro Popular (SP) was introduced in 2002 to provide health insurance to the 50 million Mexicans without Social Security. This paper tests whether the program has had unintended consequences, distorting workers’ incentives to operate in the informal sector. The analysis examines the impact of...

Tax expenditures are generally defined as those government expenditures carried out through tax legislation, regulations, and practices that reduce or defer taxes for some taxpayers. There is a general concern that the tax expenditures negatively affect the budget and tax policies, which in turn...