This paper studies the effect of enforcing labor regulation in an economy with a dual labor market. The analysis uses data from Brazil, a country with a large informal sector and strict labor law, where enforcement affects mainly the degree of compliance with mandated benefits (severance pay and...

We explore how the underemployment problem of less-developed economies is related to income inequality. Our crucial assumption is that consumers have non-homothetic preferences over differentiated products of formal-sector goods and thus that inequality affects the composition of aggregate...

Inequality in Latin America is very large and there is a great desire for greater social justice, inclusion and equal opportunities. In order to contribute to the understanding of such developments, this volume addresses the problem of economic inequality in Paraguay, Honduras and Chile. The...