similarly kucera and xenogiani interpret findings that link the regulatory burden to the size of the informal economy as representing how labour is regulated especially through firm entry rather than how much it is regulated the effects of labour regulation on employment outcomes also depend on enforcement which is typically imperfect increased enforcement efforts in the case of brazil led to lower rates of informality but also to more unemployment and smaller firms almeida and cameiro in indonesia during the s increased compliance with minimum wages was the key pathway to increased pay in the textile footwear and apparel industry harrison and scorse