Article ID Journal Published Year Pages File Type
7393645 World Development 2015 12 Pages PDF
Abstract
Using data for over 500 informal or unregistered firms in seven countries in Africa, this study explores how labor productivity varies between small and large informal firms. We find robust evidence that small informal firms have higher labor productivity than large informal firms. Thus, even though poor performance of informal firms is typically attributed to their small size vis-à-vis registered or formal sector firms, incremental increases in the size of informal firms does not necessarily imply a narrowing of the formal-informal firm productivity gap.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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