that said the majority of workers who are registered through such schemes tend to be informal workers in the formal sector whereas most informal employment in fact occurs in unregistered firms berg an additional problem raised by almeida and cameiro is that such policies can lead to an increase in unemployment if firms find it too costly to abide by the rules this is why in brazil the focus of inspection has not merely been on inspecting and sanctioning but also on trying to find durable solutions in partnership with the firms concerned as shown by mello and santos educational attainment is a strong predictor of sector of employment formal or informal at the individual level