Dasgupta, Indraneel; Marjit, Sugata - 2004
We examine the impact of economic deregulation on employer evasion of union-mandated "formal" wage-contracts in an … import-competing industry. We show that, if the state maintains industrial employment despite import liberalisation, through … cheaper credit to firms, then employer evasion will increase, due to a rise in the formal-informal wage gap. Institutional …