Enforcement and Compliance with Labor Regulations in Argentina

Lucas Ronconi

153 citations0/0 files storedIndustrial and Labor Relations Review

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Labor Law and Work Dynamics Taxation and Compliance Studies Regulation and Compliance Studies

Abstract

The author analyzes the effect of government enforcement on compliance with labor regulations in Argentina, a country where only half of the workforce receives all the benefits to which they are legally entitled. Constructing panel data for the period 1995–2002 across provinces and using the number of labor inspectors per capita as a proxy for enforcement, he estimates the effect of enforcement on compliance with six employment and social security regulations: minimum wage, maximum hours, paid vacation time, annual extra monthly wage, workers compensation insurance, and health insurance. Because of potential simultaneity between enforcement and compliance, the author explores instrumenting enforcement by electoral years. Two-stage least squares estimates suggest enforcement increases compliance.

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References

1999Why do Some Countries Produce So Much More Output Per Worker than Others?1972Income tax evasion: a theoretical analysis 2004The Regulation of Labor 1996Myth and Measurement: The New Economics of the Minimum Wage.2000The Economic Theory of Public Enforcement of Law 1996The Economics of the Informal Sector: A Simple Model and Some Empirical Evidence from Latin America 2002Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime: Comment 1983Going by the Book, the Problem of Regulatory Unreasonableness

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