The Gender Labor Productivity Gap across Informal Firms

This study uncovers a gender labor productivity gap among informal firms in 14 developing economies. The results show that labor productivity is approximately 15.2 percent (or 0.165 log point) lower among women-owned than men-owned informal firms....

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Main Authors: Islam, Asif M., Amin, Mohammad
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2022
Subjects:
Online Access:http://documents.worldbank.org/curated/en/099726104202220986/IDU0701ff3fb0acb104fbe0ae3d0a6a066260d3f
http://hdl.handle.net/10986/37332
id okr-10986-37332
recordtype oai_dc
spelling okr-10986-373322022-04-23T05:10:38Z The Gender Labor Productivity Gap across Informal Firms Islam, Asif M. Amin, Mohammad WOMEN-OWNED FIRMS PRODUCTIVITY FACTORS INFORMAL FIRM PRODUCTIVITY MEASURE PRODUCTIVITY GENDER GAP GENDER SOCIAL PROTECTIONS EDUCATION INEQUALITY CAPITALIZATION GENDER GAP LABOR DISPARITY CRIME INFORMAL ECONOMY FORMALIZATION OF ECONOMY This study uncovers a gender labor productivity gap among informal firms in 14 developing economies. The results show that labor productivity is approximately 15.2 percent (or 0.165 log point) lower among women-owned than men-owned informal firms. Decomposition techniques reveal several factors that contribute to lower labor productivity of women-owned informal firms relative to men-owned informal firms. These include lower education, lower experience, lower capitalization, and less protection from crime among women owners than men owners of informal firms. However, the smaller size of the women-owned firms and their greater return from producing or selling under contract and from security payments narrows the productivity gap. The results provide several specific and general policy recommendations for improving the labor productivity of women-owned informal firms and closing the gap with male-owned informal firms. For one, a substantial amount of the productivity gap can be closed by providing more resources to women such as education, managerial experience, and physical capital. The study also provides some preliminary results on another important policy objective —the costs and benefits of formalization as perceived by women-owned versus men-owned informal firms. 2022-04-22T14:49:26Z 2022-04-22T14:49:26Z 2022-04 Working Paper http://documents.worldbank.org/curated/en/099726104202220986/IDU0701ff3fb0acb104fbe0ae3d0a6a066260d3f http://hdl.handle.net/10986/37332 English Policy Research Working Paper;10011 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic WOMEN-OWNED FIRMS
PRODUCTIVITY FACTORS
INFORMAL FIRM PRODUCTIVITY MEASURE
PRODUCTIVITY GENDER GAP
GENDER SOCIAL PROTECTIONS
EDUCATION INEQUALITY
CAPITALIZATION GENDER GAP
LABOR DISPARITY
CRIME
INFORMAL ECONOMY
FORMALIZATION OF ECONOMY
spellingShingle WOMEN-OWNED FIRMS
PRODUCTIVITY FACTORS
INFORMAL FIRM PRODUCTIVITY MEASURE
PRODUCTIVITY GENDER GAP
GENDER SOCIAL PROTECTIONS
EDUCATION INEQUALITY
CAPITALIZATION GENDER GAP
LABOR DISPARITY
CRIME
INFORMAL ECONOMY
FORMALIZATION OF ECONOMY
Islam, Asif M.
Amin, Mohammad
The Gender Labor Productivity Gap across Informal Firms
relation Policy Research Working Paper;10011
description This study uncovers a gender labor productivity gap among informal firms in 14 developing economies. The results show that labor productivity is approximately 15.2 percent (or 0.165 log point) lower among women-owned than men-owned informal firms. Decomposition techniques reveal several factors that contribute to lower labor productivity of women-owned informal firms relative to men-owned informal firms. These include lower education, lower experience, lower capitalization, and less protection from crime among women owners than men owners of informal firms. However, the smaller size of the women-owned firms and their greater return from producing or selling under contract and from security payments narrows the productivity gap. The results provide several specific and general policy recommendations for improving the labor productivity of women-owned informal firms and closing the gap with male-owned informal firms. For one, a substantial amount of the productivity gap can be closed by providing more resources to women such as education, managerial experience, and physical capital. The study also provides some preliminary results on another important policy objective —the costs and benefits of formalization as perceived by women-owned versus men-owned informal firms.
format Working Paper
author Islam, Asif M.
Amin, Mohammad
author_facet Islam, Asif M.
Amin, Mohammad
author_sort Islam, Asif M.
title The Gender Labor Productivity Gap across Informal Firms
title_short The Gender Labor Productivity Gap across Informal Firms
title_full The Gender Labor Productivity Gap across Informal Firms
title_fullStr The Gender Labor Productivity Gap across Informal Firms
title_full_unstemmed The Gender Labor Productivity Gap across Informal Firms
title_sort gender labor productivity gap across informal firms
publisher World Bank, Washington, DC
publishDate 2022
url http://documents.worldbank.org/curated/en/099726104202220986/IDU0701ff3fb0acb104fbe0ae3d0a6a066260d3f
http://hdl.handle.net/10986/37332
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