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Labor Inspections in the Developing World: Stylized Facts from the Enterprise Survey
Author(s) -
Almeida Rita,
Ronconi Lucas
Publication year - 2016
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/irel.12146
Subject(s) - stylized fact , consistency (knowledge bases) , tax evasion , developing country , business , evasion (ethics) , survey data collection , labour economics , economics , industrial organization , public economics , economic growth , macroeconomics , statistics , geometry , mathematics , immune system , biology , immunology
This paper empirically explores the incidence of labor inspections across registered firms in 72 developing countries. Results show that larger firms are more likely to be inspected than smaller firms. Interestingly, inspections are less likely to occur among firms with a larger share of low‐skilled workers, and that operate in industries with more tax evasion. We explore the heterogeneity of these findings across income and geographic groups, and conclude by briefly discussing the consistency of the stylized facts with competing theories of inspection agencies’ behavior.