NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Suresh De Mel

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

Working Papers and Chapters

April 2012The demand for, and consequences of, formalization among informal firms in Sri Lanka
with David McKenzie, Christopher Woodruff: w18019
We conduct a field experiment in Sri Lanka providing informal firms incentives to formalize. Information about the registration process and reimbursement of direct costs has no effect. Payments equivalent to one-half to one month (alternatively, 2 months) of the median firm's profits leads to registration of around one-fifth (alternatively, one-half) of firms. Land ownership issues are the most common reason for not registering. Follow-up surveys 15 to 31 months later show higher mean profits, but largely in a few firms which grew rapidly. We find little evidence for other changes in behavior, but formalized firms express more trust in the state.

Published: Suresh de Mel & David McKenzie & Christopher Woodruff, 2013. "The Demand for, and Consequences of, Formalization among Informal Firms in Sri Lanka," American Economic Journal: Applied Economics, American Economic Association, vol. 5(2), pages 122-50, April. citation courtesy of

May 2010Who are the Microenterprise Owners? Evidence from Sri Lanka on Tokman versus De Soto
with David McKenzie, Christopher Woodruff
in International Differences in Entrepreneurship, Josh Lerner and Antoinette Schoar, editors

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

 
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