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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...
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revenues and expenditures are linked to the business cycle in Brazil, particularly after the introduction of the Fiscal …-cyclical fiscal policy in Brazil at the state level. However, the introduction of the Fiscal Responsibility Law helped to reduce …
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