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  • 1
    Language: English
    Pages: Online-Ressource (1 online resource (54 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Bruhn, Miriam License To Sell
    Keywords: Business Environment ; Business Registration ; Business entry ; Business in Development ; Business regulation ; Businesses ; Competitiveness and Competition Policy ; E-Business ; Economic development ; Labor Policies ; License ; Private Sector ; Private Sector Development ; Public Sector Development ; Results ; Social Protections and Labor ; Uses ; Web ; Business Environment ; Business Registration ; Business entry ; Business in Development ; Business regulation ; Businesses ; Competitiveness and Competition Policy ; E-Business ; Economic development ; Labor Policies ; License ; Private Sector ; Private Sector Development ; Public Sector Development ; Results ; Social Protections and Labor ; Uses ; Web ; Business Environment ; Business Registration ; Business entry ; Business in Development ; Business regulation ; Businesses ; Competitiveness and Competition Policy ; E-Business ; Economic development ; Labor Policies ; License ; Private Sector ; Private Sector Development ; Public Sector Development ; Results ; Social Protections and Labor ; Uses ; Web
    Abstract: This paper studies the effect of business registration regulation on economic activity using micro-level data. The identification strategy exploits the fact that a recent business registration reform in Mexico was introduced in different municipalities at different points in time. Using panel data from the Mexican employment survey, I find that the reform increased the number of registered businesses by 5 percent in eligible industries. This increase was due to former wage earners opening businesses. Former unregistered business owners were not more likely to register their business after the reform. Moreover, employment in eligible industries went up by 2.8 percent, and people who were previously unemployed or out of the labor force were more likely to work as wage earners after the reform. Finally, the results imply that the competition from new entrants lowered prices by 0.6 percent and decreased the income of incumbent businesses by 3.2 percent
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  • 2
    Language: English
    Pages: Online-Ressource (1 online resource (58 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Bruhn, Miriam Good, Bad, And Ugly Colonial Activities
    Keywords: Country Population Profiles ; Demographics ; Economic Theory & Research ; Gross domestic product ; Health, Nutrition and Population ; Human capital ; Income inequality ; Labor force ; Native population ; Policy research ; Policy research working paper ; Population Policies ; Population density ; Progress ; Social sciences ; Country Population Profiles ; Demographics ; Economic Theory & Research ; Gross domestic product ; Health, Nutrition and Population ; Human capital ; Income inequality ; Labor force ; Native population ; Policy research ; Policy research working paper ; Population Policies ; Population density ; Progress ; Social sciences ; Country Population Profiles ; Demographics ; Economic Theory & Research ; Gross domestic product ; Health, Nutrition and Population ; Human capital ; Income inequality ; Labor force ; Native population ; Policy research ; Policy research working paper ; Population Policies ; Population density ; Progress ; Social sciences
    Abstract: Levels of economic development vary widely within countries in the Americas. This paper argues that part of this variation has its roots in the colonial era. Colonizers engaged in different economic activities in different regions of a country, depending on local conditions. Some activities were "bad" in the sense that they depended heavily on the exploitation of labor and created extractive institutions, while "good" activities created inclusive institutions. The authors show that areas with bad colonial activities have lower gross domestic product per capita today than areas with good colonial activities. Areas with high pre-colonial population density also do worse today. In particular, the positive effect of "good" activities goes away in areas with high pre-colonial population density. The analysis attributes this to the "ugly" fact that colonizers used the pre-colonial population as an exploitable resource. The intermediating factor between history and current development appears to be institutional differences across regions and not income inequality or the current ethnic composition of the population
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  • 3
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: Online-Ressource (30 p)
    Edition: 2009 World Bank eLibrary
    Parallel Title: Bruhn, Miriam The Economic Impact of Banking the Unbanked
    Abstract: This paper examines the effects of providing financial services to low-income individuals on entrepreneurial activity, employment, and income. The analysis exploits cross-time and cross-municipality variation in the opening of Banco Azteca in Mexico to measure these effects with a difference-in-difference strategy. Banco Azteca opened more than 800 branches simultaneously in 2002, focusing on low-income clients. The results show that the opening of Banco Azteca led to an increase in the number of informal business owners by 7.6 percent. Total employment also increased, by 1.4 percent, and average income went up by about 7 percent
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  • 4
    Language: English
    Pages: Online-Ressource (62 p)
    Edition: 2011 World Bank eLibrary
    Parallel Title: Bruhn, Miriam Stimulating Managerial Capital in Emerging Markets
    Abstract: Identifying the determinants of entrepreneurship is an important research and policy goal, especially in emerging market economies where lack of capital and supporting infrastructure often imposes stringent constraints on business growth. This paper studies the impact of a comprehensive business and financial literacy program on firm outcomes of young entrepreneurs in an emerging post-conflict economy, Bosnia and Herzegovina. The authors conduct a randomized control trial and find that while the training program did not influence business survival, it significantly improved business practices, investments, and loan terms for surviving businesses. Entrepreneurs with higher ex-ante financial literacy further exhibited some improvements in business performance and sales
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  • 5
    Language: English
    Pages: Online-Ressource (24 p)
    Edition: 2012 World Bank eLibrary
    Parallel Title: Bruhn, Miriam A Tale of Two Species
    Abstract: Different views have been put forward to explain why most firms in developing countries operate informally. One view argues that informal-business owners are entrepreneurs who do not register their firm because the regulation process is too complex. Another argues that informal-business owners are people trying to make a living while searching for a wage job. This paper contributes to recent literature that argues that both factors are at work. The author uses discriminant analysis to separate informal business owners into two groups: those with personal characteristics similar to wage workers, and those with traits similar to formal-business owners. The paper then examines how the two groups were affected by a business registration reform in Mexico. Informal-business owners from the second group were more likely to register their business after the reform. By contrast, informal-business owners from the first group were less likely to register but more likely to become wage workers after the reform. This is consistent with the finding in Bruhn (2008 and 2011) that the reform led to job creation. It also explains why the earlier papers find that the reform didn?t affect the number of new registrations by all informal business owners
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  • 6
    Language: English
    Pages: 1 Online-Ressource (33 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Bruhn, Miriam Can Wage Subsidies Boost Employment in the Wake of an Economic Crisis? Evidence from Mexico
    Abstract: The rise in unemployment during an economic crisis poses a significant concern to policy makers. This paper measures the effect of a program in Mexico that granted firms in certain industries wage subsidies if they decided to keep their workers instead of letting them go during the recent economic crisis. The analysis uses monthly administrative data on employment at the industry level, along with propensity score matching to construct groups of eligible and ineligible durable goods manufacturing industries that display statistically identical pre-program trends in employment. Difference-in-difference results show a positive but not statistically significant effect of the wage subsidies on employment during the program's eight-month duration, ranging from 5.7 to 13.2 percent in magnitude, depending on the specification. The size of the effect increases to 24 percent after the program ended and the results indicate that employment after the program recovered faster in eligible industries than in ineligible industries
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  • 7
    Language: English
    Pages: Online-Ressource (27 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Bruhn, Miriam Using Administrative Data to Evaluate Municipal Reforms
    Abstract: Efforts to make it easier for firms to register formally are the most common form of business regulatory reform over the past decade. While there is evidence that large reforms have resulted in some increases in registration rates, recent experimental evidence suggests very few informal firms choose to register when given information about how to do so. This raises the question of whether it is productive for governments to continue to extend simplification efforts to all firms, especially those in more remote areas where many of the benefits of registering may be reduced. This study uses administrative data to evaluate the impact of Minas Fácil Expresso, a program in the state of Minas Gerais, Brazil, which attempted to expand a business start-up simplification program to more remote municipalities. Using difference-in-differences with 56 months of registration data for 822 municipalities, the analysis finds introducing these units actually led to a reduction in registration rates, and no change in tax revenues. The paper uses this evaluation to illustrate the design choices and issues involved in using administrative data to evaluate reforms, with the goal of also providing a template that can be used for evaluating similar reforms elsewhere
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  • 8
    Language: English
    Pages: Online-Ressource (46 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Bruhn, Miriam Why is Voluntary Financial Education so Unpopular?
    Abstract: Take-up of voluntary financial education programs is typically extremely low. This paper reports on randomized experiments around a large financial literacy course offered in Mexico City to understand the reasons for low take-up, and to measure the impact of financial education. It documents that the general public displays little interest in such courses and that participation is low even among individuals who express interest in financial education. The paper experimentally investigates barriers to take-up, and finds no impact of relaxing reputational or logistical constraints and no evidence that time inconsistency is the reason for limited participation. Even relatively sizeable monetary incentives get less than 40 percent of interested individuals invited to training to attend. Using a randomized encouragement design, the authors measure the impact of the course on financial knowledge and behavior. Attending training results in a 9 percentage point increase in financial knowledge and a 9 percentage point increase in saving outcomes, but no impact on borrowing behavior. Administrative data indicate that the savings impact is relatively short-lived. The results suggest people are making optimal choices not to attend financial education courses, and point to the limits of using general purpose courses to improve financial behavior for the general population
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  • 9
    Language: English
    Pages: Online-Ressource (35 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Bruhn, Miriam Bank Competition, Concentration, and Credit Reporting
    Abstract: This paper explores the empirical relationship between bank competition, bank concentration, and the emergence of credit reporting institutions. The authors find that countries with lower entry barriers into the banking market (that is, a greater threat of competition) are less likely to have a credit bureau, presumably because banks are less willing to share proprietary information when the threat of market entry is high. In addition, a credit bureau is significantly less likely to emerge in economies characterized by a high degree of bank concentration. The authors argue that the reason for this finding is that large banks stand to lose more monopoly rents from sharing their extensive information with smaller players. In contrast, the data show no significant relationship between bank competition or concentration and the emergence of a public credit registry, where banks' participation is mandatory. The results highlight that policies designed to promote the voluntary creation of a credit bureau need to take into account banks' incentives to extract monopoly rents from proprietary credit information
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  • 10
    Language: English
    Pages: Online-Ressource (18 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Bruhn, Miriam Entry Regulation and Formalization of Microenterprises in Developing Countries
    Abstract: The majority of microenterprises in most developing countries remain informal despite more than a decade of reforms aimed at making it easier and cheaper for them to formalize. This paper summarizes the evidence on the effects of entry reforms and related policy actions to promote firm formalization. Most of these policies result only in a modest increase in the number of formal firms, if at all. Less is known about the impact of other forms of business regulations on the performance of low-scale enterprises. Most informal firms appear not to benefit on net from formalizing, so ease of formalization alone will not lead to most of them formalizing. Increased enforcement of rules can increase formality. Although there is a fiscal benefit of doing this with larger informal firms, it is unclear whether there is a public rationale for trying to formalize subsistence enterprises
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