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

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  • Sanjay Jain

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?

Suggested Citation

  • Sanjay Jain, 2021. "Informal employment or informal firms? Regulatory enforcement and the transformation of the informal sector," WIDER Working Paper Series wp-2021-123, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2021-123
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    References listed on IDEAS

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    Keywords

    Informal sector; Regulation; Spillovers; Informal work; Regulatory; Output;
    All these keywords.

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