necessarily increasing general unemployment. However, recent evidence from transition and emerging economies shows that employment … protection legislation tends to raise unemployment among disadvantaged groups, particularly youth, and may increase informal work …

necessarily increasing general unemployment. However, recent evidence from transition and emerging economies shows that employment … protection legislation tends to raise unemployment among disadvantaged groups, particularly youth, and may increase informal work …

), the tax wedge, the unemployment benefit level, unemployment benefit duration and union density, are assembled at the IZA … size of the informal economy. There is also evidence that a larger tax wedge increases informality. The tax wedge … with the literature, which identifies labor market regulation and the tax wedge as important drivers of informality. …

This paper is based on the first use of program administrative data from Brazil's unemployment insurance (UI) program …