A Helping Hand or the Long Arm of the Law? Experimental Evidence on What Governments Can Do to Formalize Firms

@article{deAndrade2013AHH,
  title={A Helping Hand or the Long Arm of the Law? Experimental Evidence on What Governments Can Do to Formalize Firms},
  author={Gustavo Henrique de Andrade and Miriam Bruhn and David McKenzie},
  journal={Public Economics: National Government Expenditures \& Related Policies eJournal},
  year={2013}
}
Many governments have spent much of the past decade trying to extend a helping hand to informal businesses by making it easier and cheaper for them to formalize. Much less effort has been devoted to raising the costs of remaining informal, through increasing enforcement of existing regulations. This paper reports on a field experiment conducted in Belo Horizonte, Brazil, in order to test which government actions work in getting informal firms to register. Firms were randomized to a control… 
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