However, the analysis attempts to control for unobserved individual characteristics that may be correlated with working in the formal sector. There are many studies on the effects of unemployment compensation for the re-employment outcomes of job losers in developed countries, but also there the evidence is rather mixed. While previously informal workers have a much higher chance of returning to informal work, whether in the form of salaried work or self-employment, consistent with findings reported in Margolis (2008), this difference is only slightly larger for long-tenure workers than for short-tenure workers.