@techreport{NBERw18019,
 title = "The demand for, and consequences of, formalization among informal firms in Sri Lanka",
 author = "Suresh De Mel and David McKenzie and Christopher Woodruff",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "18019",
 year = "2012",
 month = "April",
 URL = "http://www.nber.org/papers/w18019",
 abstract = {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.},
}