We investigate both theoretically and empirically the relationship between economic expansion and the degree of formalization of the Brazilian labor market in the recent period. Based on search models, we present a theoretical framework that attempts to explain the recent increase in the share...

In recent years, Brazil has seen an increase in formal employment, the raising of the minimum wage, a recovery in the purchasing power of the average wage, a drop in open unemployment and curbs on unprotected subcontracting. Average household incomes have risen and poverty has declined. How was...