Developing countries have large, complex informal sectors. Informality provides workers and firms with flexibility at the cost of security, often leaving individuals worse off in the long-term. What have we learned from research on informality, and how can we use it to inform policy?

What are the effects of trade amidst a large informal sector? New research studies a model tightly connected to data on firms and workers in Brazil

Lower informality does not necessarily translate to higher total factor productivity or improved welfare

Homicides increased in Brazilian regions exposed to greater foreign competition following trade liberalisation, with employment rates the main driver