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Gender in Bolivian Production : Reducing Differences in Formality and Productivity of Firms

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  • World Bank
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    Abstract

    A main goal of this study is to determine the variables responsible for the lower formality of women-owned businesses. The companion study (the World Bank 2007a) shows that Bolivia's informal sector is the largest in Latin America by many definitions and measures. It also provides a rationale for promoting formality given the many negative effects of a high rate of informality. These negative effects include a lower growth potential as informal firms tend to be less productive owing to limited access to physical, financial, and human capital, and a smaller scale of operations; negative fiscal impacts as informal firms "free ride" on services provided with fiscal resources; and negative social externalities, including weaker rule of law and public institutions, increased corruption, and weakened ability to enforce contracts. A second goal of this study is to identify gender-based productivity constraints that hinder the growth of female-owned businesses. First, author's analysis of the impact of formality on profitability shows that the gains of formalization for most female-owned businesses increase as the firms grow. Second, author's find that the smaller scale of operation of female-owned firms is one of the main causes of gender-based differences in productivity and profitability. However, most of the differences between male and female-owned firms diminish or disappear as firms grow.

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    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/2669/501760PUB0Gend1ug026109780821380147.pdf?sequence=1
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    Bibliographic Info

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    This book is provided by The World Bank in its series World Bank Publications with number 2669 and published in 2009.

    ISBN: 978-0-8213-8014-7
    Handle: RePEc:wbk:wbpubs:2669

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    Web page: https://openknowledge.worldbank.org
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    Keywords: Gender - Gender and Development Gender - Gender and Law Gender - Gender and Health Finance and Financial Sector Development - Access to Finance;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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