Informal employment or informal firms? Regulatory enforcement and the transformation of the informal sector

Sanjay Jain

No wp-2021-123, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: While there is general agreement that regulatory avoidance is an important part of firms' decisions to produce in the informal sector, there is much less agreement on how regulation and enforcement affect firms' decisions on, inter alia, which sector they locate in, their employment decisions, and whether to transition from one sector to another. In this paper, we focus on this set of questions: how does the regulatory regime affect these sectoral location decisions by firms?

Keywords: Informal sector; Regulation; Spillovers; Informal work; Regulatory; Output (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-isf, nep-iue and nep-reg
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