TY - GEN AU - Santos, Cezar TI - Labor Market Regulation and Informality (Discussion Paper) PY - 2023 Y1 - 2023/03/29 DO - 10.18235/0004809 AB - Developing countries are characterized by a high share of informal workers and several types of labor market regulation. We study the effects of the enforcement of this type of regulation on firm dynamics in Brazil, using different linked administrative data sets. Using a difference-in-differences design, we show that firms caught with informal workers experience a slowdown in their growth rates that last several years. Informal workers are present in firms of all sizes. Formal and informal workers exhibit almost identical observable characteristics. UR - https://doi.org/10.18235/0004809 ER -