Enforcement of Labor Regulation and Firm Size

This paper investigates how the enforcement of labor regulation affects firm size and other firm characteristics in Brazil. We explore firm level data on employment, capital, and output, city level data on economic characteristics, and new administrative data measuring enforcement of regulation at t...

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Main Authors:	Almeida, Rita, Carneiro, Pedro
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Labor-Management Relations, Trade Unions, and Collective Bargaining: Public Policy J580 Labor Law K310 Illegal Behavior and the Enforcement of Law K420 Institutions and Growth O430
Online Access:	http://hdl.handle.net/10986/5548

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recordtype	oai_dc
spelling	okr-10986-55482021-04-23T14:02:22Z Enforcement of Labor Regulation and Firm Size Almeida, Rita Carneiro, Pedro Labor-Management Relations, Trade Unions, and Collective Bargaining: Public Policy J580 Labor Law K310 Illegal Behavior and the Enforcement of Law K420 Institutions and Growth O430 This paper investigates how the enforcement of labor regulation affects firm size and other firm characteristics in Brazil. We explore firm level data on employment, capital, and output, city level data on economic characteristics, and new administrative data measuring enforcement of regulation at the city level. Since enforcement may be endogenous, we instrument this variable with the distance between the city where the firm is located and surrounding enforcement offices, while controlling for a rich set of city characteristics (such as past levels of informality in the city). We present suggestive evidence of the validity of this instrument. We find that stricter enforcement of labor regulation constrains firm size, and leads to higher unemployment. 2012-03-30T07:33:22Z 2012-03-30T07:33:22Z 2009 Journal Article Journal of Comparative Economics 01475967 http://hdl.handle.net/10986/5548 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Labor-Management Relations, Trade Unions, and Collective Bargaining: Public Policy J580 Labor Law K310 Illegal Behavior and the Enforcement of Law K420 Institutions and Growth O430
spellingShingle	Labor-Management Relations, Trade Unions, and Collective Bargaining: Public Policy J580 Labor Law K310 Illegal Behavior and the Enforcement of Law K420 Institutions and Growth O430 Almeida, Rita Carneiro, Pedro Enforcement of Labor Regulation and Firm Size
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper investigates how the enforcement of labor regulation affects firm size and other firm characteristics in Brazil. We explore firm level data on employment, capital, and output, city level data on economic characteristics, and new administrative data measuring enforcement of regulation at the city level. Since enforcement may be endogenous, we instrument this variable with the distance between the city where the firm is located and surrounding enforcement offices, while controlling for a rich set of city characteristics (such as past levels of informality in the city). We present suggestive evidence of the validity of this instrument. We find that stricter enforcement of labor regulation constrains firm size, and leads to higher unemployment.
format	Journal Article
author	Almeida, Rita Carneiro, Pedro
author_facet	Almeida, Rita Carneiro, Pedro
author_sort	Almeida, Rita
title	Enforcement of Labor Regulation and Firm Size
title_short	Enforcement of Labor Regulation and Firm Size
title_full	Enforcement of Labor Regulation and Firm Size
title_fullStr	Enforcement of Labor Regulation and Firm Size
title_full_unstemmed	Enforcement of Labor Regulation and Firm Size
title_sort	enforcement of labor regulation and firm size
publishDate	2012
url	http://hdl.handle.net/10986/5548
_version_	1764395444552597504

Enforcement of Labor Regulation and Firm Size

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