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Gender, Entrepreneurship, and the Formal–Informal Dilemma: Evidence from Indonesia

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  • Babbitt, Laura G.
  • Brown, Drusilla
  • Mazaheri, Nimah

Abstract

This study analyzes the preferences of entrepreneurs about formality and focuses on the role of gender. Relying on original data collected in Indonesia, we unpack the differences between various types of female entrepreneurs (currently in the informal sector) according to their preferences about formalization. Contrary to the existing literature, we find that female entrepreneurs possess highly nuanced preferences about formalization that are conditional on many factors. The preference for formalization is strongest among female entrepreneurs who are older, married, rural-based, and have recently started their firms. Our work contributes to research that seeks to better understand entrepreneurial preferences and the role that gender plays.

Suggested Citation

  • Babbitt, Laura G. & Brown, Drusilla & Mazaheri, Nimah, 2015. "Gender, Entrepreneurship, and the Formal–Informal Dilemma: Evidence from Indonesia," World Development, Elsevier, vol. 72(C), pages 163-174.
    • Handle: RePEc:eee:wdevel:v:72:y:2015:i:c:p:163-174
    DOI: 10.1016/j.worlddev.2015.02.019
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    16. Nohoua TRAORE, 2023. "La formalisation améliore-t-elle la productivité des firmes en Côte d’Ivoire ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 57, pages 5-27.
    17. Nimoh, Nana C. & Ali, Abdilahi & Syme, Tony, 2020. "Earnings gaps, Segmentation and Competitiveness in the Ghanaian Labour Market," EconStor Preprints 214817, ZBW - Leibniz Information Centre for Economics.
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