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Enforcement Spillovers under Different Networks: The Case of Quotas for Persons with Disabilities in Brazil

Author

Listed:
  • Jessica Gagete-Miranda

    (University of Milan-Bicocca)

Abstract

This study examines labor law enforcement spillovers in Brazil's highly informal economy, focusing on disability quota enforcement for formal firms. New inspection procedures increased compliance through heightened inspections and fines, boosting disability hiring. We investigate spillover effects across various firm networks: neighborhood, ownership, and human resources specialists. Results show that spillovers can have up to twice the impact on disability employment compared to direct fines. These findings highlight the potential for targeted enforcement strategies to amplify policy effectiveness beyond directly affected firms even in developing economies characterized by low compliance with employment laws.

Suggested Citation

  • Jessica Gagete-Miranda, 2024. "Enforcement Spillovers under Different Networks: The Case of Quotas for Persons with Disabilities in Brazil," ERSA Working Paper Series 16, Economic Research Southern Africa.
    • Handle: RePEc:rza:ersawp:16
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    File URL: https://ersawps.org/index.php/working-paper-series/article/view/16/80
    File Function: First version, 2024
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    Keywords

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    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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