UCL Discovery
UCL home » Library Services » Electronic resources » UCL Discovery

Enforcement of labor regulation and firm size

Almeida, R.; Carneiro, P.; (2009) Enforcement of labor regulation and firm size. Journal of Comparative Economics , 37 (1) pp. 28-46. 10.1016/j.jce.2008.09.004. Green open access

[thumbnail of 16155.pdf]
Preview
PDF
16155.pdf

Download (285kB)

Abstract

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.

Type: Article
Title: Enforcement of labor regulation and firm size
Open access status: An open access version is available from UCL Discovery
DOI: 10.1016/j.jce.2008.09.004
Publisher version: http://dx.doi.org/10.1016/j.jce.2008.09.004
Language: English
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/16155
Downloads since deposit
1,121Downloads
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item