This thesis analyzes three different labor market policies implemented in countries characterized by high levels of informal employment. Chapter 1, joint with Hannah Liepmann, estimates the welfare effects of unemployment benefits in Mauritius and assesses the role played by informal jobs. Chapter 2 studies the effects of an increase in labor inspectors in Colombia on measures of labor law compliance and employment levels. Chapter 3 analyses the long-term effectiveness of three different active labor market policies available to unemployed individuals in Mauritius.