This study conducts a quasi-experimental impact evaluation of the start-up of Sunafil on labor informality variables. Sunafil changed the institutional environment mainly by increasing labor inspection expenses. Leveraging the time and geographical variation of Sunafil, differences in difference with multiple time periods, discontinuous regression, and differences in discontinuities were used. It is found that Sunafil reduced the probability of not having health insurance (18 pp.), not having a work contract (23 pp.), and receiving less than the minimum wage (9 pp.). The effects are similar in the formal sector. Likewise, the effect is different depending on the worker’s gender and the intensity of expenditure on inspections and payroll.