Policies to Curb Unauthorized Employment

This policy brief offers a sobering analysis of the policy options available to governments seeking to reduce the hiring of unauthorized workers. The author concludes that “a comprehensive approach has the greatest potential for success.” Such an approach would combine stronger sanctions against illegal hiring with some expansion of legal flows of low-skilled workers, along with stronger enforcement of basic labor law standards. 

However, fiscal and budgetary constraints may make it difficult to implement such an approach and, even if implemented, some employers, particularly small employers operating in the informal economy, may fail to comply.

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