Carneiro, Rafael Dix; Goldberg, Pinelopi K.; Meghir, Costas - 2021
simulations to understand how trade affects economic outcomes in the presence of informality. We show the following: 1) Trade … openness unambiguously decreases informality in the tradable sector but has ambiguous effects on aggregate informality. 2) The … even when informality is repressed. 4) Repressing informality increases productivity but at the expense of employment and …