The study hypothesizes that “enforcement” of regulations that promote formalization will increase the average quality of the labor force, with a positive effect on job creation and thus better levels of productivity and output.
This research project also identifies the effect on welfare: males-females wage gap and employment opportunities for both genders. Finally, the project aims at identifying the best tools that the government should put into effect to eliminate regulatory burdens that hinder the chances that these informal projects grow through economies of scale.
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