Fig. 2

Changes in tariffs and in the informality rate cross-section. a All manufacturing. b Small-size industries. c Large industries. Source: Own elaboration based on EPH and Galiani and Porto (2010). To split industries into small and large, we use information from the EPH about the size of the firm where each worker is employed. This information is categorical in the survey, the categories being 1 = 1 employee, 2 = 2 to 5, 3 = 5 to 15; 4 = 16 to 25; 5 = 26 to 50; 6 = 51 to 100; 7 = 101 to 500; 8 = 501 or more. We classify a firm as small when the size is 15 workers or less. We then define an industry as small when the share of workers employed in small firms is 0.5 or larger. In our econometric analysis, we perform robustness tests on this size threshold