Enforcement of Labor Regulation and Informality
研究发现，在监管频繁的地区，工人通过接受更低工资来换取法定福利，但工资刚性阻止了底端工资下调，反而吸引部分非正规工人转向正规部门。
Enforcement of labor regulations in the formal sector may drive workers to informality because they increase the costs of formal labor. But better compliance with mandated benefits makes it attractive to be a formal employee. We show that, in locations with frequent inspections, workers pay for mandated benefits by receiving lower wages. Wage rigidity prevents downward adjustment at the bottom of the wage distribution. As a result, lower paid formal sector jobs become attractive to some informal workers, inducing them to want to move to the formal sector.