Print version ISSN 0011-5258
One aspect the literature overlooks on the effects of labor regulation of labor market efficiency is the degree of the legislation's effectiveness, i.e., its actual enforcement in daily work relations. Even the more sophisticated econometric studies (which take into account the effects of interaction between labor market regulatory institutions in explaining its dynamics) leave this central issue aside, namely enforcement versus non-enforcement of the law. Keeping this issue in mind, we seek to answer the following question in this article: given that the effectiveness of labor legislation depends on the interaction between the overall sanctions and the probability of the employer getting caught breaking the law, and given that the law's effectiveness is a decisive aspect for the real measurement of a country's labor costs, to what extent is the Brazilian labor inspection system designed to meet its objective, namely, to enforce the law?
Keywords : labor legislation; labor inspection; construction industry.