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Face-to-face vs. virtual assistance to entrepreneurs: Evidence from a field experiment in Brazil

Author

Listed:
  • Zucco, Cesar
  • Lenz, Anna-Katharina
  • Goldszmidt, Rafael
  • Valdivia, Martin

Abstract

We conduct a field experiment on formalization and subsequent tax compliance of informal entrepreneurs in Rio de Janeiro favelas. Providing in-person one-on-one training with the offer of one-on-one assistance with the formalization process increased information levels about the program, intention to formalize, formalization, and subsequent tax compliance. Providing essentially the same information and assistance via instant messaging produced similar effects on knowledge and intention to formalize, but no effects on formalization itself.

Suggested Citation

  • Zucco, Cesar & Lenz, Anna-Katharina & Goldszmidt, Rafael & Valdivia, Martin, 2020. "Face-to-face vs. virtual assistance to entrepreneurs: Evidence from a field experiment in Brazil," Economics Letters, Elsevier, vol. 188(C).
    • Handle: RePEc:eee:ecolet:v:188:y:2020:i:c:s0165176519304690
    DOI: 10.1016/j.econlet.2019.108922
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    References listed on IDEAS

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    More about this item

    Keywords

    Formalization; Technical assistance; Field experiment;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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