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This paper analyzes the economic impact of rural-urban migration in Brazil, revealing that drought-induced immigration reduces informality and increases formal firms and jobs over a decade, contrary to existing literature. The findings indicate that downward nominal wage rigidity plays a crucial role, with short-term effects showing increased informality, while long-term effects demonstrate a reduction in informality and no change in unemployment. The study emphasizes the contrasting short- and long-run imp

Author

ghyslain moubeke

Language

EN