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We study the relationship between financial constraints and employment formalization by exploiting heterogeneity in the industry-level degree of financial dependence, in the spirit of Rajan and Zingales (1998). This dependence, and variation in aggregate credit, lets us measure industry-level...
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the Mexican data. Finally, I use the ENOE to calibrate the model and estimate gender-based frictions in the labor market … increase by 4.3% without women's restrictions to entrepreneurship and by 32.1% without restrictions to entry and … entrepreneurship. In addition, the southern states would witness the largest increases. …
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