Female Business Ownership and Informal Sector Persistence

The informal sector in India has been exceptionally persistent over the past two decades. Is this a bad thing? Not necessarily. This paper shows that a substantial share of the persistence in India's unorganized manufacturing sector is due to...

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Bibliographic Details
Main Authors: Ghani, Ejaz, Kerr, William R., O'Connell, Stephen D.
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
ADB
AID
WEB
Online Access:http://documents.worldbank.org/curated/en/2013/09/18275300/female-business-ownership-informal-sector-persistence
http://hdl.handle.net/10986/16836
Description
Summary:The informal sector in India has been exceptionally persistent over the past two decades. Is this a bad thing? Not necessarily. This paper shows that a substantial share of the persistence in India's unorganized manufacturing sector is due to the rapid increase in female-owned businesses. Had women's participation remained in the proportion to male-owned businesses that was evident in 1994, the unorganized manufacturing sector would have declined in share rather than increased. Most of these new female-owned businesses are opened in the household and at a small scale, about a third of the size of a typical male-owned business in the informal sector. Yet, it appears that these businesses offer economic opportunities not otherwise present and a transition for some women from unpaid domestic work.