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Increasing the Cost of Informal Employment: Evidence from Mexico

By Brenda Samaniego de la Parra and ³¢±ðó²Ô Fernández Bujanda

òòò½Íø Journal: Applied Economics, January 2024

We estimate the effect of increasing the cost of informal jobs on formal firms' and workers' outcomes. We combine administrative records and household surveys and exploit exogenous variation in the cost of informality generated by over 480,000 random work...

At What Level Should One Cluster Standard Errors in Paired and Small-Strata Experiments?

By °ä±ôé³¾±ð²Ô³Ù de Chaisemartin and Jaime Ramirez-Cuellar

òòò½Íø Journal: Applied Economics, January 2024

In matched pairs experiments in which one cluster per pair of clusters is assigned to treatment, to estimate treatment effects, researchers often regress their outcome on a treatment indicator and pair fixed effects, clustering standard errors at the unit...

Reversing the Resource Curse: Foreign Corruption Regulation and the Local Economic Benefits of Resource Extraction

By Hans B. Christensen, Mark Maffett, and Thomas Rauter

òòò½Íø Journal: Applied Economics, January 2024

We examine how foreign corruption regulation affects the economic benefits communities receive from extraction activities in the resource-rich areas of Africa. After a mid-2000s increase in enforcement of the US Foreign Corrupt Practices Act (FCPA), night...