enforcement
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The challenges of reducing informal employment: Evidence from Mexico
Increasing the cost of informal employment raised formalisation rates for workers at formal firms. However, it also led to a large, persistent drop in firm size. There is a trade-off between higher formalisation rates for current employees and lower ...
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Do minimum wages reduce employment in developing countries?
Employment is more likely to be reduced when the minimum wage is binding, in the formal sector, when enforcement is strong, and for vulnerable workers
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Can wealth taxation work in developing countries?
Progressive wealth taxes may be difficult to enforce if wealthy individuals underreport their wealth, but disclosure incentives and greater enforcement can improve tax collection