Search results

This paper aims to focus on the influences that lead individuals to create and continue with operating informal business ventures in Peru. It seeks to empirically identify the factors that are significant in forming the intentions of entrepreneurs to begin or continue with their informal businesses.

The theory of planned behaviour (TPB) is applied using data gathered from interviews with informal domestic gas cylinder sellers using a formally conducted survey. Using structural equation modelling, the constructs that influence the entrepreneurial intentions of informal gas sellers in Lima, Peru, are determined.

Of the three TPB constructs, attitude was found to be most significant, reflecting a belief of informality’s benefits, social norm was also significant, revealing the importance of the opinions of family, whereas perceived behavioural control was found not to be significant.

These results provide confirmation of a policy approach developed to address the high rates of business informality while maintaining safety in a highly regulated industry segment. By providing insight into factors beyond economic drivers, the study reveals that an understanding of the prevailing social environment is important for the development of policies dealing with informal entrepreneurship.

Relatively little research has examined whether pay dispersion influences men's and women's earnings differently. The purpose of this paper is to fill this research gap.

The authors used survey design and multiple regressions to analyze a sample of 650 Swedish medical doctors.

Pay dispersion was found to be negatively associated with both men's and women's earnings. These effects were contingent on compensation informality and the individual's position in the pay structure. Specifically, when pay dispersion was high, high compensation informality resulted in women being paid less. The interaction of pay dispersion and compensation informality was unrelated to men's earnings. Also, women who were paid less suffered larger penalties when pay dispersion was higher, but their female counterparts who were paid more gained from the existence of greater pay dispersion.

Examining the structure of labor markets on individual outcomes is increasing in importance due to the boundaryless nature of contemporary careers. As people cross functional, organizational, industrial, and even occupational boundaries more frequently in their career lifetimes, they are increasingly exposed to the structural effects of external labor markets. As such, the effects of factors such as pay dispersion and compensation informality in the market are becoming increasingly significant to the fortunes of women and men facing those conditions.

Presents a unique view of informality within the government of Tatarstan which challenges the notion that these forms can be dismissed as simply corruption. Focuses on interviews with investors and businessmen, showing how informality can be an important factor in the reproduction of elite classes. Limits the article to the unique dynamics of the transition from command economy to free market economy but provides resonance with the experiences of those who have worked in many third‐world societies.

Most developing countries are characterized by large informal sectors. A substantial proportion of firms in these countries began operations in the informal sector, eventually becoming formal. The purpose of this paper is to study whether, after formalization, firms that began operations in the informal sector are more or less likely to use intellectual capital in the form of disembodied technology licensing than firms that began operations in the formal sector. The moderating roles of being a downstream firm, age and the country’s per capita income are also analyzed.

The effect of initial informality on the probability of licensing is estimated using firm-level data from the World Bank’s Enterprise Survey, conducted in several Latin American countries in 2006–2017.

Formal firms that began informally are less likely to use licensed technology, suggesting the existence of long-run effects of informality. The effect of initial informality is more negative among downstream firms.

The analysis uses cross-sectional data. Unobservable firm fixed effects could be controlled for using longitudinal data.

Initial informality affecting the innovation strategies of firms should be considered when designing policies that incentivize formality.

If, in light of the results of this analysis, policies are designed which foster a better allocation of resources, there will be a tangible impact in the lives of many people in developing countries.

This is the first paper that analyzes the relationship between initial informality status and technology licensing, a relevant channel for the international diffusion of technology.

The paper utilises formality-informality modelling to examine occupational change, using commercial service charge management as its case study.

This is a conceptual paper that develops a typology for applying formalisation to occupational change and then utilises historiography to generate a narrative on the evolution of service charge management.

Formality is seen as a method of improving transparency and performance as a “modern” response to a range complaints about professional performance. Whilst real improvement failed to develop, a “snowball” of continued formalisation remained the perceived solution, leading to centralisation of measures of professional performance.

The work is a conceptual paper that develops a historiography on the development of service charge administrative practice. Whilst it relies on objective data and secondary literature, the narrative that is developed is subjective and interpretive.

The conceptual nature of the work offers potential insights into occupational organisation. It suggests that formalising procedures in itself does not improve performance.

In the last decade, Argentina has experienced a considerable decline in informal employment and wage dispersion. This paper extends a search model with exogenous human capital accumulation to include the informal sector. The model is parametrized to match Argentinian data between 1996 and 1998 – before the onset of the declining trend – and it is used to investigate the contribution of labor market measures to the falling informality, unemployment, and wage dispersion. The findings indicate that institutional factors did not contribute to the positive labor market trends observed; on the contrary, results show that higher severance pay and minimum wages increase informality and that the introduction of unemployment assistance contributed to the spread of informal contracts across the work force. Further, I find that compliance with minimum wage regulation strongly affects the final impact of these policies. While non perfect compliance might reduce unemployment, it reinforces the incentives of workers to move to the informal sector.

This paper aims to examine the factors associated with a household business entrepreneur’s decisions to formalise the firm at a multidimensions level.

The data set is a panel of 2,336 SMEs and household businesses from Vietnamese SME surveys during the 2005–2015 period.

This study elucidates how firm-level resources, entrepreneur characteristics and costs of doing business influence an entrepreneur’s decision to enter, the speed and the degree of formality.

This study provides insight into the origins of an entrepreneur’s decisions to the multidimensions of business formality through the lenses of the resource-based view, entrepreneurship and institution theories.

The learning outcomes are as follows: to understand the problem of informality and how it develops, taking advantage of the control flaws of public and private institutions and its growth by the legitimacy of society; to analyze the role of the regulatory body in its fight against informality from the area of its influence, which is the energy sector; to analyze the economic and social impact of a solution like the one proposed in the case; to analyze the impact at the level of public policies of solutions such as the one proposed in the case; and to review the strategy of the hand of technology that can achieve the development of original solutions to fight against informality.

The case study was written on the basis of a real success story that explains the development of a technological solution that allowed the Supervisory Agency of Energy and Mining of Peru to effectively deal with informality in the commercialization of fuels, which became a reference in the region. The story begins by recreating the system that existed for the commercialization of fuels and how the shortcomings of this system itself encouraged the appearance of informal merchants who benefited from the situation. It also explains how the regulatory authority decides to deal with this problem by creating a special unit that confronts this issue and how, after some failures, an original strategy was able to be designed with the help of technology to control informality.

Business schools, where different aspects can be analyzed, such as the strategy used in the supply chain of informal or formal commerce. It is also recommended for use in master’s programs in specific sectors, such as public management or energy management. Finally, it can also be used in entrepreneurship, given that informal entrepreneurship is considered as a new line of research in this field.

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CSS 11: Strategy.

This study aims to investigate the factors that affect the likelihood of formalizing informal sector activities in 13 Sub-Saharan African countries, using World Bank enterprise survey data collected between the periods 2009 and 2018. Notwithstanding the great contribution of the informal economy in Africa, developing countries may stand to gain more if they make inroads in formalizing the informal sector.

Since the dependent variable is binary taking the value of one if the firm is willing to formalize and zero otherwise, the study will employ a discrete choice probit model.

Results inter alia show that firms that are more likely to formalize are young, owned by individuals with high levels of education and, have registered before. Governments should therefore target firms that are young and provide them with information about the benefits of registration, and if these firms are owned by experienced and educated individuals, the likelihood for them to register would be high.

The study uses cross sectional data and therefore cannot capture time variant factors affecting the probability to register and also cannot correct effectively for endogeneity.

Governments should therefore target firms that are young and provide them with as much information as possible about the benefits of registration, and if these firms are owned by experienced and educated individuals, the likelihood to convince them to register would be high. They should also reduce the cost of registration so as to improve net benefits in line with the rational exit view.

Formalizing informal activities will help improve the performance of these firms, reduce vulnerable employment as well as crime, poverty and inequality. Providing decent operating and working conditions to informal players will reduce social and political unrest.

The African continent is home to many informal firms accounting for roughly 55% of economic activity with 90% of workers eking out a living in a sector that does not respect worker rights, provide decent working conditions and where changes in growth have done little to reduce its size. Regulatory reforms have also been implemented resulting in the number of start-up registration procedures falling from 11 in 2003 to seven in 2019. The uniqueness of Sub Saharan Africa in terms of entrepreneurial culture, political, institutional and economic conditions as well as lack of consensus in the extant empirical literature make this study pertinent.