IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-24-00365.html

A logit analysis of norm compliance by micro-enterprises in Chile

Author

Listed:
  • Sang Hyup Lee

    (Southeastern Louisiana University)

  • Luis Gutiérrez

    (Universidad del Rosario)

Abstract

Using a survey data from more than 6,000 micro-enterprises in Chile, this study attempts to identify potential determinants of formality and micro-entrepreneurs' motivations for the norm compliance. Our logit estimation results suggest that the motivations of micro-entrepreneurs for norm compliance is attributable not only to their individual and entrepreneurial characteristics such as education and managerial capital but also to other imputable business and financial characteristics of micro-enterprises like asset ownership and firm size. Our empirical findings also confirm that the sample Chilean micro-entrepreneurs' motivations to get formal appear to be largely in line with the exit-driven view.

Suggested Citation

  • Sang Hyup Lee & Luis Gutiérrez, 2024. "A logit analysis of norm compliance by micro-enterprises in Chile," Economics Bulletin, AccessEcon, vol. 44(3), pages 1196-1213.
    • Handle: RePEc:ebl:ecbull:eb-24-00365
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2024/Volume44/EB-24-V44-I3-P94.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Suresh de Mel & David McKenzie & Christopher Woodruff, 2009. "Returns to Capital in Microenterprises: Evidence from a Field Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(1), pages 423-423.
    2. Rajeev K. Goel & Fahd Rehman, 2020. "What induces firms to subcontract to the informal sector? Evidence from a developing country," Applied Economics Letters, Taylor & Francis Journals, vol. 27(3), pages 178-187, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. González-Uribe, Juanita & Reyes, Santiago, 2021. "Identifying and boosting “Gazelles”: Evidence from business accelerators," Journal of Financial Economics, Elsevier, vol. 139(1), pages 260-287.
    2. Pascaline Dupas & Sarah Green & Anthony Keats & Jonathan Robinson, 2014. "Challenges in Banking the Rural Poor: Evidence from Kenya's Western Province," NBER Chapters, in: African Successes, Volume III: Modernization and Development, pages 63-101, National Bureau of Economic Research, Inc.
    3. Dehejia, Rajeev & Montgomery, Heather & Morduch, Jonathan, 2012. "Do interest rates matter? Credit demand in the Dhaka slums," Journal of Development Economics, Elsevier, vol. 97(2), pages 437-449.
    4. Durevall, Dick. & Mussa, Richard., 2010. "Employment diagnostic analysis : Malawi," ILO Working Papers 994614443402676, International Labour Organization.
    5. Daniel Bjorkegren & Joshua Blumenstock & Omowunmi Folajimi-Senjobi & Jacqueline Mauro & Suraj R. Nair, 2022. "Instant Loans Can Lift Subjective Well-Being: A Randomized Evaluation of Digital Credit in Nigeria," Papers 2202.13540, arXiv.org.
    6. Cristina Fernández & Juan Benavides, 2020. "Las plataformas digitales, la productividad y el empleo en Colombia," Informes de Investigación 18276, Fedesarrollo.
    7. Farida Mohammed Shehu & Al-Hasan Al-Aidaros, 2015. "A Proposed Framework on the Relationship between Islamic Microfinance Related Factors and Women Entrepreneurs Business Performance in Nigeria," Journal of Education and Vocational Research, AMH International, vol. 6(4), pages 38-44.
    8. Michael Grimm & Anicet Munyehirwe & Jörg Peters & Maximiliane Sievert, 2015. "A First Step Up the Energy Ladder? Low Cost Solar Kits and Household’s Welfare in Rural Rwanda," Ruhr Economic Papers 0554, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    9. Nicola Limodio, 2015. "The Development Impact of Financial Regulation: Evidence from Ethiopia and Antebellum USA," 2015 Meeting Papers 355, Society for Economic Dynamics.
    10. repec:dgr:rugggd:gd-120 is not listed on IDEAS
    11. Grover,Arti Goswami & Kahn,Matthew Edwin, 2024. "Firm Adaptation to Climate Risk in the Developing World," Policy Research Working Paper Series 10797, The World Bank.
    12. 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 122-150, April.
    13. Yiwei Liu & Wenjing Wang, 2026. "Early-life institutional shocks and household entrepreneurship: evidence from China’s Send-Down Movement," Economic Change and Restructuring, Springer, vol. 59(4), pages 1-32, August.
    14. Dalton,Patricio S. & Ruschenpohler,Julius & Zia,Bilal Husnain, 2018. "Determinants and dynamics of business aspirations : evidence from small-scale entrepreneurs in an emerging market," Policy Research Working Paper Series 8400, The World Bank.
    15. Keijiro Otsuka, 2020. "Strategy for Cluster-Based Industrial Development in Developing Countries," Discussion Papers 2019, Graduate School of Economics, Kobe University.
    16. Michael Kremer & Jonathan Robinson & Olga Rostapshova, 2014. "Success in Entrepreneurship: Doing the Math," NBER Chapters, in: African Successes, Volume II: Human Capital, pages 281-303, National Bureau of Economic Research, Inc.
    17. Paul J. Gertler & Orie Shelef & Catherine D. Wolfram & Alan Fuchs, 2016. "The Demand for Energy-Using Assets among the World's Rising Middle Classes," American Economic Review, American Economic Association, vol. 106(6), pages 1366-1401, June.
    18. Michael Grimm & Peter Knorringa & Jann Lay, 2012. "Constrained Gazelles," World Bank Publications - Reports 26877, The World Bank Group.
    19. Christopher Blattman & Eric Green & Jeannie Annan & Julian Jamison, 2013. "Building Women's Economic and Social Empowerment through Enterprise : An Experimental Assessment of the Women's Income Generating Support Program in Uganda," World Bank Publications - Reports 17862, The World Bank Group.
    20. Pamela Jakiela & Owen Ozier, 2016. "Does Africa Need a Rotten Kin Theorem? Experimental Evidence from Village Economies," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(1), pages 231-268.
    21. Marcel Fafchamps & Simon Quinn, 2017. "Aspire," Journal of Development Studies, Taylor & Francis Journals, vol. 53(10), pages 1615-1633, October.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-24-00365. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.