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Wage employees receiving benefits are employed in formal firms.
This effect is possible because labor inspections are focused on formal firms in Argentina.
Part of these nonpecuniary preferences is health insurance plans provided by formal firms.
When formal firms face stricter enforcement, the cost of not complying with labor regulations becomes higher.
Because formal firms' demand is falling both for formal and informal female wage employees (scale effect), self-employed women switch to wage employment in informal firms.
Panels (a) and (b) show, for the country as a whole, the number of inspected firms and the number of inspected firms per hundred formal firms respectively.
Similar(41)
One survey estimates that the average formal firm employs 126 people whereas the typical informal firm employs only four.
I consider a representative profit maximizing formal firm which operates in a two-sector economy with competitive markets and no rigidities and chooses the number of male and female employees given a set of factors such as technology and capital stock.
Traditional Boss You work at a bank or a formal firm.
Case in point: Jeff Clavier, who started out as an angel investor backing Web 2.0 companies and then transitioned his portfolio into a more formal venture firm, SoftTech VC.
While large companies have the resources to set up formal schemes, small firms and startups often won't have anything official in place.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com