Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302219 
Year of Publication: 
2024
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-1613
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
This study examines labor law enforcement spillovers in Brazil's highly informal economy, focusing on disability quota enforcement for formal firms. New inspection procedures increased compliance through heightened inspections and fines, boosting disability hiring. We investigate spillover effects across various firm networks: neighborhood, ownership, and human resources specialists. Results show that spillovers can have up to twice the impact on disability employment compared to direct fines. These findings highlight the potential for targeted enforcement strategies to amplify policy effectiveness beyond directly affected firms even in developing economies characterized by low compliance with employment laws.
Subjects: 
Enforcement spillovers
Networks
Persons with disability
Brazil
JEL: 
I38
J68
K31
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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