The Informal Sector
---- Acknowledgements ----
We thank Rita Almeida and Sandra Brandao for their help with the enforcement data, and Joana Monteiro and Juliano Assuncao for providing us with the ECINF dataset and clarifying its methodology. We also thank Julio Cacho, Paulo Natenzon, Justinas Pelenis and Glen Weyl for research assistance. We benefited from comments by seminar participants at several institutions and conferences and especially from conversations with William Maloney, Nicola Persico and Ken Wolpin. This material is based upon work supported by the National Science Foundation under Award Numbers SES0350770 and SES0718407. Scheinkman's research was also partially supported by the John Simon Guggenheim Memorial Foundation. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.