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What is Labor Regulation and Trade Impact in Brazil about?

This document summarizes a discussion paper that examines how enforcement of labor regulations shapes the labor market effects of trade liberalization using evidence from Brazil. The authors exploit variation in the intensity of trade liberalization across local labor markets and variation in enforcement of labor regulations, measured by distance to local labor offices. They find that regions with stricter enforcement saw larger increases in unemployment but no rise in informality, while regions with weaker

Author
Laurence Go
Language
EN