Working Paper
On the Effects of Formalization on Taxes and Wages
Based on a unique panel dataset consisting of both formal and informal firms surveyed every other year from 2005 to 2013, this paper explores the benefits of formalization to the government and firm employees in Vietnam. We find that formalization...
Research Brief
Clustering, competition, and spillover effects in Cambodia
What types of businesses benefit or suffer due to geographic clustering? Data available from Cambodia on competition and spillovers—at both village- and commune-level—is useful to answer a number of questions about the effects of clustering and the...
Journal Special Issue
Entrepreneurship and Conflict
Entrepreneurs are often adversely affected by violent conflict such as civil war. At the same time though entrepreneurs may contribute to or even benefit from violent conflict and other ‘destructive’ and ‘unproductive’ activities that limit economic...
Journal Article
Benefits of Formalization
Based on unique panel data consisting of both formal and informal firms, this paper uses a matched double difference approach to examine the relationship between legal status and firm level outcomes in micro, small and medium manufacturing...
Working Paper
Informality, Growth, and Development in Africa
The informal sector makes up an overwhelming share of both gross domestic product and total employment in Africa. In this paper, we lay out some of the basic characteristics of the informal sector in sub-Saharan Africa, relevant institutions, and...
Journal Article
Firm-Level Corruption in Vietnam
This article uses panel data from a survey of small- and medium-sized enterprises in Vietnam to uncover which firms pay bribes and which do not. We also study how bribe paying evolved between 2005 and 2007 and test how the determinants of bribes...
Working Paper
Measuring the Labour Income Share of Developing Countries
This paper is the first to address the challenges of measuring the labour income share of developing countries. The poor availability and reliability of national accounts data, and the fact that self-employed people, whose labour income is hard to...
Working Paper
Minimum Wage and Informality in Ecuador
This paper investigates if changes in the minimum wage have influenced changes on the formality and informality rates, and the level of wages in Ecuador. A 12-year panel was built. It allows to overcome the short time span of household data and so to...
Journal Article
On the Short- and Medium-Term Effects of Formalisation
This paper analyses the consequences of formalisation on the performance of informal firms, using a panel dataset from Vietnam. We find that switching firms (before switching) have higher profit and value added compared to non-switching firms...
Report
Myanmar Micro, Small, and Medium Enterprise Survey 2017
Myanmar’s transition to a market-based economy is accompanied by rapid development of the private manufacturing sector, which has large potential for improving economic growth. The overall success of the sector, however, should not be taken for...
Working Paper
Why do household businesses in Vietnam stay informal?
Using unbalanced panel data from the small and medium enterprise surveys in Vietnam in 2005, 2007, 2009, 2011, 2013, and 2015, this paper investigates factors associated with informality in Vietnam. We assume that household businesses, especially the...
Working Paper
How important are management practices for the productivity of small and medium enterprises?
Is the lack of ‘managerial capital’, alongside human and financial capital, a constraint on the growth of firms in developing countries? The evidence on this is still mixed, especially among small and medium enterprises. This paper uses a panel of...
Working Paper
Public Policies to Promote Productive Occupation and Increase Formality Among the Moderately Poor
Public policy aimed at building capacity among the extremely poor (support for food and nutrition; health; education and, more recently, financial services), combined with a stable macroeconomic environment, has proved to be successful for poverty...
Working Paper
Enforcement and Compliance in Lima's Street Markets
Almost twenty years have passed since researchers from the Institute for Liberty and Democracy in Peru showed how ‘bad laws’ impose disproportionate costs on those who choose formality. Although a multitude of conflicting regulations still precludes...
Working Paper
Inter- and Intra-household Linkages Between the Informal and Formal Sector
Given the current focus of international development policy on pro-poor growth and poverty reduction, the role of the informal sector in the process of economic development is again at the top of the research and policy agenda. A key question is if...
Working Paper
Unofficial Trade When States Are Weak
This paper addresses informal cross-border trade in the Horn of Africa, with an emphasis on the Somalia borderlands. It will be shown that despite the collapse of a government in 1991, Somalia’s unofficial exports of cattle to Kenya have grown...
Working Paper
Globalization, Reform and the Informal Sector
The objective of the paper is to understand the transforming relationship between the formal and informal sector in a liberalizing open developing economy. There are various facets in this relationship, and we focus on three essential aspects. First...
Working Paper
Formal Bureaucracy and the Emergent Forms of the Informal Economy
The following essay has three parts. The first is a story about fluctuations in the balance of the relationship between impersonal and personal principles of social organization. This draws heavily on Max Weber’s interpretation of western history...
Working Paper
Rethinking the Informal Economy
This paper explores the relationship of the informal economy to the formal economy and to the formal regulatory environment. It begins with a comparison of the earlier concept of the ‘informal sector’ with the new expanded concept of the ‘informal...
Working Paper
A Model of a Rule of Law and a Rule of Man
Findings of cross-cultural psychology suggest that different approaches to rule enforcement have cultural roots. Individualist societies have established a rule of law, in which rules prevail; collectivist societies have a rule of man, which allows...
Working Paper
Voluntary Contributions to Informal Activities Producing Public Goods: Can These be Induced by Government and Other Formal Sector Agents?
This study attempts to determine the extent to which human potential may be unlocked by government or other formal sector actions that induce voluntary contributions by individuals to the activities of Indonesia’s posyandus or village health posts...
Working Paper
The Informal Sector During Crisis and Transition
One of the most notable phenomena during economic transition is the shrinkage of the public sector and expansion of the not working population, simultaneously with the expansion of both the formal and informal private sectors. We address the related...
Journal Article
The Forgotten Property Rights
Studies of land property rights usually focus on tenure security and transfer rights. Rights to determine how to use the land are regularly ignored. However, user rights are often limited. Relying on a unique Vietnamese panel data set at both...
Book Chapter
Informality, Growth and Development in Africa
From the book: Oxford Handbook of Africa and Economics, Vol. 1.
Journal Article
The gendered crisis
THIS ARTICLE IS ON EARLY VIEW | This article studies the impact of the COVID-19 pandemic on the gendered dimensions of employment and mental health among urban informal-sector workers in Delhi, India. First, the study finds that men’s employment...
Working Paper
Impact of the COVID-19 pandemic on employment
This paper provides a comparative summary of recent national statistics from five Latin American countries on employment losses and gains during the peak COVID-19 years compared with pre-pandemic levels. As part of its work on the impact of the...
Working Paper
Domestic revenue mobilization and informality
Effective domestic revenue mobilization has gained renewed urgency, especially in the light of the need to recover from the COVID-19 pandemic. In taxation debates, the ‘informal sectors’ have hitherto been assumed to be a part of the problem and...
Journal Article
When the Lewisian dream sours
The COVID-19 pandemic has escalated processes of labour transition from industrial work to the informal economy, which have always characterized the life of the working poor. This study explores this kind of reverse transition, that is, when the...
Working Paper
Incorporating informal workers into social insurance in Tanzania
Expansion of social protection reach among workers in the large informal economy represents a persisting and thorny challenge in the development context. In Mainland Tanzania, several domestically led policy reforms have been introduced to...
Working Paper
The afterlife of industrial work
The COVID-19 pandemic has escalated processes of labour transition from industrial work to the informal economy, which have always characterized the life of the working poor. Exploring urban-to-rural labour transitions through a feminist political...
Working Paper
The gender productivity gap
We examine the patterns and correlates of the productivity gap between male-owned and female-owned firms for informal enterprises in India. Female-owned firms are on average 45 per cent less productive than male-owned firms, with the clearest...
Working Paper
Towards sustainable livelihood in the Tanzanian informal economy
In spite of having some intensive national strategies to address poverty, Tanzania lacks a coherent national strategy to ensure sustainable livelihoods for those working in its informal economy, of which street vending is an important sector. Based...
Working Paper
The gendered crisis: livelihoods and mental well-being in India during COVID-19
This paper studies the impact of the COVID-19 crisis on the gendered dimensions of employment and mental health among urban informal-sector workers in India. First, we find that men’s employment declined by 84 percentage points post-pandemic relative...
Working Paper
What sustains informality?
We consider two vertical links between informal- and formal-sector firms and study their implications. In one case, the final products produced by the formal- and informal-sector firms are vertically differentiated in terms of quality, and the size...