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Informal Labor and the Efficiency Cost of Social Programs: Evidence from the Brazilian Unemployment Insurance Program

François Gerard, Gustavo Gonzaga

NBER Working Paper No. 22608
Issued in September 2016, Revised in May 2018

---- Acknowledgments ----

We would like to thank Veronica Alaimo, Miguel Almunia, Alan Auerbach, Juliano Assunção, Richard Blundell, Mark Borgschulte, David Card, Raj Chetty, Julie Cullen, Claudio Ferraz, Fred Finan, Rema Hanna, Jonas Hjort, Hedvig Horvath, Henrik Kleven, Patrick Kline, Camille Landais, Attila Lindner, Ioana Marinescu, Jamie McCasland, Pascal Michaillat, Edward Miguel, Torsten Persson, Roland Rathelot, Emmanuel Saez, Johannes Schmieder, Rodrigo Soares, Johannes Spinnewijn, Eric Verhoogen, Till von Wachter, Owen Zidar, and seminar participants at the Annual Congress of the IIPF, the Annual Meetings of the SOLE, the Brazilian Econometric Society, the Bank of Mexico, Brown, Chicago, the CEPR Annual Public Economics Symposium, CIDE, COLMEX, Columbia, Duke, EESP–FGV, the IADB, the IIES, Insper, McGill, the NBER Public Economics Program Meeting, PUC-Rio, Toulouse, UC Berkeley, UC Los Angeles, UC San Diego, UCL, Maryland, Uppsala, Urbana–Champaign, Wharton, Wisconsin–Madison, and the World Bank for useful comments and suggestions. We also thank the Ministério do Trabalho e Emprego for providing access to the data and CNPq (Gustavo Gonzaga), Wallonie–Bruxelles International, and the Center for Equitable Growth (François Gerard) for financial support. All errors are our own. Corresponding author: François Gerard (email: fgerard@columbia.edu). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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