This paper aims to evaluate the impact of a tax incentive program targeted to small business (SIMPLES) on employment growth. The evaluation is conducted for two distinct periods, namely 1997 when the program was first implemented and 1999 when the eligibility rule was modified in order to...

Brazil federal tax policy changed course since 2007, when it was heavily activated to stimulate economic activity in a broad sense including job creation. A key policy instrument in this period was a tax on manufacturing products known as IPI (Imposto sobre produtos industrializados), whose tax...

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...

We offer a decomposition for the variance of the current unemployment rate that not only measures the contributions of labor market flows but also of the approximation error embedded in other decompositions that use surrogates for the current rate. Using data for the United States and Brazil,...

This article analyses the effect of labor turnover on the productivity of Brazilian manufacturing firms between 1996 and 2013. We based our analysis on a theory of learning by doing, where turnover harms productivity by restricting the efficiency gains achieved by workers when they accumulate...

We implement decompositions of cyclical unemployment in a large developing country using the conventional 3-states and a 4-states representation of the labor market, where in the latter we subdivide the employment state into formal and informal forms of employment. This allows a richer analysis...