Informality and Profitability : Evidence from a New Firm Survey in Ecuador

This article estimates the impact of informality on profits using a new survey administered to 1,200 firms with less than 50 employees in four cities in Ecuador. The article proposes a novel definition of informality which explicitly recognises that most firms comply with some regulations but not ot...

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Bibliographic Details
Main Authors:	Medvedev, Denis, Oviedo, Ana María
Format:	Journal Article
Language:	en_US
Published:	Taylor and Francis 2015
Subjects:	informality profitability firm survey
Online Access:	http://hdl.handle.net/10986/22697

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recordtype	oai_dc
spelling	okr-10986-226972021-04-23T14:04:10Z Informality and Profitability : Evidence from a New Firm Survey in Ecuador Medvedev, Denis Oviedo, Ana María informality profitability firm survey This article estimates the impact of informality on profits using a new survey administered to 1,200 firms with less than 50 employees in four cities in Ecuador. The article proposes a novel definition of informality which explicitly recognises that most firms comply with some regulations but not others. Accounting for firm selection and controlling for a large set of firm, owner and location characteristics, the article finds that more formal firms tend to be more profitable and have higher output per worker. This impact operates, inter alia, through improved access to credit and higher sales through issuance of tax receipts. 2015-09-28T16:38:43Z 2015-09-28T16:38:43Z 2015-08-13 Journal Article The Journal of Development Studies 0022-0388 http://hdl.handle.net/10986/22697 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor and Francis Publications & Research Publications & Research :: Journal Article Latin America & Caribbean Ecuador
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	informality profitability firm survey
spellingShingle	informality profitability firm survey Medvedev, Denis Oviedo, Ana María Informality and Profitability : Evidence from a New Firm Survey in Ecuador
geographic_facet	Latin America & Caribbean Ecuador
description	This article estimates the impact of informality on profits using a new survey administered to 1,200 firms with less than 50 employees in four cities in Ecuador. The article proposes a novel definition of informality which explicitly recognises that most firms comply with some regulations but not others. Accounting for firm selection and controlling for a large set of firm, owner and location characteristics, the article finds that more formal firms tend to be more profitable and have higher output per worker. This impact operates, inter alia, through improved access to credit and higher sales through issuance of tax receipts.
format	Journal Article
author	Medvedev, Denis Oviedo, Ana María
author_facet	Medvedev, Denis Oviedo, Ana María
author_sort	Medvedev, Denis
title	Informality and Profitability : Evidence from a New Firm Survey in Ecuador
title_short	Informality and Profitability : Evidence from a New Firm Survey in Ecuador
title_full	Informality and Profitability : Evidence from a New Firm Survey in Ecuador
title_fullStr	Informality and Profitability : Evidence from a New Firm Survey in Ecuador
title_full_unstemmed	Informality and Profitability : Evidence from a New Firm Survey in Ecuador
title_sort	informality and profitability : evidence from a new firm survey in ecuador
publisher	Taylor and Francis
publishDate	2015
url	http://hdl.handle.net/10986/22697
_version_	1764451801508085760

Informality and Profitability : Evidence from a New Firm Survey in Ecuador

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