Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 10, 2021 erstellt
Beschreibung:
We explore a large-scale formalization program in Brazil to investigate how formality costs affect the registration and growth of microentrepreneurs. Using new administrative data, we leverage industry eligibility criteria from the program to show that a substantial reduction in formality costs increased formal firm registration by 76% in eligible industries between 2009 and 2015. In the same period, the formality rate of microentrepreneurs increased by 88%. Nevertheless, despite the considerable effects on informality, we reject that the reduction in formality cost caused major economic benefits for the newly formal microenterprises as they do not grow in observable measures