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  • 2015-2019  (13)
  • 2005-2009  (13)
  • McKenzie, David
  • Washington, D.C : The World Bank  (26)
  • Paris : OECD Publishing
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  • 1
    Online Resource
    Online Resource
    Learning the Impact of Financial Education When Take-Up Is Low (2017)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (38 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Ibarra, Gabriel Lara Learning the Impact of Financial Education When Take-Up Is Low
    Abstract: Financial education programs are increasingly offered by governments, nonprofits, and financial institutions. However, voluntary participation rates in such programs are often very low, posing a severe challenge for randomized experiments attempting to measure their impact. This study uses a large experiment on more than 100,000 credit card clients in Mexico. The study shows how the richness of financial data allows combining nonexperimental methods with the experiment to yield credible measures of impact, even with take-up rates below 1 percent. The findings show that a financial education workshop and personalized coaching result in a higher likelihood of paying credit cards on time, and of making more than the minimum payment, but do not reduce spending, resulting in higher profitability for the bank
    DOI: 10.1596/1813-9450-8238
    URL: Volltext  (Deutschlandweit zugänglich)
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    MPI Ethno. Forsch.
  • 2
    Online Resource
    Online Resource
    How Effective Are Active Labor Market Policies in Developing Countries? A Critical Review of Recent Evidence (2017)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (32 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als McKenzie, David How Effective Are Active Labor Market Policies in Developing Countries? A Critical Review of Recent Evidence
    Abstract: Jobs are the number one policy concern of policy makers in many countries. The global financial crisis, rising demographic pressures, high unemployment rates, and concerns over automation all make it seem imperative that policy makers employ increasingly more active labor market policies. This paper critically examines recent evaluations of labor market policies that have provided vocational training, wage subsidies, job search assistance, and assistance moving to argue that many active labor market policies are much less effective than policymakers typically assume. Many of these evaluations find no significant impacts on either employment or earnings. One reason is that urban labor markets appear to work reasonably well in many cases, with fewer market failures than is often thought. As a result, there is less of a role for many traditional active labor market policies than is common practice. The review then discusses examples of job creation policies that do seem to offer promise, and concludes with lessons for impact evaluation and policy is this area
    DOI: 10.1596/1813-9450-8011
    URL: Volltext  (Deutschlandweit zugänglich)
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    MPI Ethno. Forsch.
  • 3
    Online Resource
    Online Resource
    Growing Markets through Business Training for Female Entrepreneurs : A Market-Level Randomized Experiment in Kenya (2017)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (55 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als McKenzie, David Growing Markets through Business Training for Female Entrepreneurs: A Market-Level Randomized Experiment in Kenya
    Abstract: A common concern with efforts to directly help some small businesses to grow is that their growth comes at the expense of their unassisted competitors. This study tests this possibility using a two-stage randomized experiment in Kenya. The experiment randomizes business training at the market level, and then within markets to selected businesses. Three years after training, the treated businesses are selling more, earn higher profits, and their owners have higher well-being. There is no evidence of negative spillovers on the competing businesses, and the markets as a whole appear to have grown in terms of number of customers and sales volumes. This market growth appears to come from enhanced customer service and new product introduction, generating more customers and more sales from existing customers. As a result, business growth in underdeveloped markets is possible without taking sales away from nontreated businesses
    DOI: 10.1596/1813-9450-7993
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 4
    Online Resource
    Online Resource
    Can Business Owners Form Accurate Counterfactuals? : Eliciting Treatment and Control Beliefs about Their Outcomes in the Alternative Treatment Status (2016)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (24 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als McKenzie, David Can Business Owners Form Accurate Counterfactuals? : Eliciting Treatment and Control Beliefs about Their Outcomes in the Alternative Treatment Status
    Abstract: A survey of participants in a large-scale business plan competition experiment, in which winners received an average of US
    DOI: 10.1596/1813-9450-7668
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 5
    Online Resource
    Online Resource
    Labor Drops : Experimental Evidence on the Return to Additional Labor in Microenterprises (2016)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (60 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als de Mel, Suresh Labor Drops: Experimental Evidence on the Return to Additional Labor in Microenterprises
    Abstract: The majority of enterprises in many developing countries have no paid workers. This paper reports on a field experiment conducted in Sri Lanka that provided wage subsidies to randomly chosen microenterprises to test whether hiring additional labor would benefit such firms. In the presence of labor market frictions, a short-term subsidy could have a lasting impact on firm employment. Using 12 rounds of surveys to track dynamics four years after the end of the subsidy, the study finds that firms increased employment during the subsidy period, but there was no lasting impact on employment, profitability, or sales. Two supplementary interventions and treatment heterogeneity suggest the lack of impact is not due to complementarities with capital or management skills, and detailed survey data help rule out a number of theoretical mechanisms that could result in sub-optimally low employment. The study concludes that the urban labor market facing microenterprises does not have large frictions that would prevent own-account workers from becoming employers
    DOI: 10.1596/1813-9450-7924
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  • 6
    Online Resource
    Online Resource
    Can Enhancing the Benefits of Formalization Induce Informal Firms to Become Formal? Experimental Evidence from Benin (2016)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (60 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Benhassine, Najy Can Enhancing the Benefits of Formalization Induce Informal Firms to Become Formal? Experimental Evidence from Benin
    Abstract: Governments around the world have introduced reforms to attempt to make it easier for informal firms to formalize. However, most informal firms have not gone on to become formal, especially when tax registration is involved. A randomized experiment based around the introduction of the entreprenant legal status in Benin is used to provide evidence from an African context on the willingness of informal firms to register after introducing a simple, free registration process, and to test the effectiveness of supplementary efforts to enhance the presumed benefits of formalization by facilitating its links to government training programs, support to open bank accounts, and tax mediation services. Few firms register when just given information about the new regime, but 9.6 percentage points more register when they were visited in person and the benefits were explained. The full package of supplementary efforts boosts the impact on the formalization rate to 16.3 percentage points, demonstrating that enhancing the benefits of formalization does induce more firms to formalize. Firms that are larger, and that look more like formal firms to begin with, are more likely to formalize, providing guidance for better targeting of such policies. However, formalization appears to offer limited benefits to the firms, and the costs of personalized assistance are high, suggesting that such enhanced formalization efforts are unlikely to pass cost-benefit tests
    DOI: 10.1596/1813-9450-7900
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  • 7
    Online Resource
    Online Resource
    The Long-Term Impacts of International Migration : Evidence from a Lottery (2015)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (35 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Gibson, John The Long-Term Impacts of International Migration: Evidence from a Lottery
    Abstract: This study examines the long-term impacts of international migration by comparing immigrants who had successful ballot entries in a migration lottery program, and first moved almost a decade ago, with people who had unsuccessful entries into those same ballots. The long-term gain in income is found to be similar in magnitude to the gain in the first year, despite migrants upgrading their education and changing their locations and occupations. This results in large, sustained benefits to the migrants' immediate family, who have substantially higher consumption, durable asset ownership, savings, and dietary diversity. In contrast, the study finds no measureable impact on extended family
    DOI: 10.1596/1813-9450-7495
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 8
    Online Resource
    Online Resource
    The Additionality Impact of a Matching Grant Program for Small Firms : Experimental Evidence from Yemen (2015)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (23 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als McKenzie, David The Additionality Impact of a Matching Grant Program for Small Firms: Experimental Evidence from Yemen
    Abstract: Matching grants are one of the most common types of private sector development programs used in developing countries. But government subsidies to private firms can be controversial. A key question is that of additionality: do these programs get firms to undertake innovative activities that they would not otherwise do, or merely subsidize activities that would take place anyway? Randomized controlled trials can provide the counterfactual needed to answer this question, but efforts to experiment with matching grant programs have often failed. This paper uses a randomized controlled trial of a matching grant program for firms in the Republic of Yemen to demonstrate the feasibility of conducting experiments with well-designed programs, and to measure the additionality impact. In the first year, the matching grant is found to have led to more product innovation, firms upgrading their accounting systems, marketing more, making more capital investments, and being more likely to report their sales grew
    DOI: 10.1596/1813-9450-7462
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  • 9
    Online Resource
    Online Resource
    Business Practices in Small Firms in Developing Countries (2015)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (42 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als McKenzie, David Business Practices in Small Firms in Developing Countries
    Abstract: Management has a large effect on the productivity of large firms. But does management matter in micro and small firms, where the majority of the labor force in developing countries works? This study developed 26 questions that measure business practices in marketing, stock-keeping, record-keeping, and financial planning. These questions have been administered in surveys in Bangladesh, Chile, Ghana, Kenya, Mexico, Nigeria, and Sri Lanka. This paper shows that variation in business practices explains as much of the variation in outcomes-sales, profits, and labor productivity and total factor productivity-in microenterprises as in larger enterprises. Panel data from three countries indicate that better business practices predict higher survival rates and faster sales growth. The effect of business practices is robust to including many measures of the owner's human capital. The analysis finds that owners with higher human capital, children of entrepreneurs, and firms with employees employ better business practices. Competition has less robust effects
    DOI: 10.1596/1813-9450-7405
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  • 10
    Online Resource
    Online Resource
    Finding a Path to Formalization in Benin : Early Results after the Introduction of the Entreprenant Legal Status (2015)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (39 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Benhassine, Najy Finding a Path to Formalization in Benin: Early Results after the Introduction of the Entreprenant Legal Status
    Abstract: In April 2014, the Government of Benin launched the entreprenant status, a simplified and free legal regime offered to small informal businesses to enter the formal economy. This paper presents the short-term results of a randomized impact evaluation testing three different versions of the entreprenant status on business registration decisions, each version including incremental incentives to registration: (i) information on the new legal status and its benefits, (ii) business training, counseling services, and support to open a bank account, (iii) tax mediation services. The study included 3,600 informal businesses operating with a fixed location in Cotonou, Benin, which were randomly allocated between three treatment groups and one control group. One year after the program launch, all versions of the program had significant impact on formalization rates. The impact was 9.1 percentage points in the first treatment group; 13 percentage points in the second group; and 15.8 percentage points in the last group. The program had a higher impact on male business owners, with more education, operating outside Dantokpa Market, in sectors other than trade, and that before being offered the incentives to formalization had characteristics similar to businesses that were already formal. Data from a second follow-up survey, which is expected to take place in March 2016, will explore the impacts on other outcomes, like business performances or access to banking
    DOI: 10.1596/1813-9450-7510
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  • 11
    Online Resource
    Online Resource
    The Demand for, and Impact of, Youth Internships : Evidence from a Randomized Experiment in Yemen (2015)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (22 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als McKenzie, David The Demand for, and Impact of, Youth Internships: Evidence from a Randomized Experiment in Yemen
    Abstract: This paper evaluates a youth internship program in the Republic of Yemen that provided firms with a 50 percent subsidy to hire recent graduates of universities and vocational schools. The first round of the program took place in 2014 and required both firms and youth to apply for the program. The paper examines the demand for such a program, and finds that in the context of an economy facing substantial political and economic uncertainty, it appears there is an oversupply of graduates in science, technology, engineering, and mathematics, and a relative undersupply of graduates in marketing and business. Conditional on the types of graduates firms were looking to hire as interns, applicants were then randomly chosen for the program. Receiving an internship resulted in an almost doubling of work experience in 2014, and a 73 percent increase in income during this period compared with the control group. A short-term follow-up survey conducted just as civil conflict was breaking out shows that internship recipients had better employment outcomes than the control group in the first five months after the program ended
    DOI: 10.1596/1813-9450-7463
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  • 12
    Online Resource
    Online Resource
    Identifying and Spurring High-Growth Entrepreneurship : Experimental Evidence from a Business Plan Competition (2015)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (74 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als McKenzie, David Identifying and Spurring High-Growth Entrepreneurship: Experimental Evidence from a Business Plan Competition
    Abstract: Almost all firms in developing countries have fewer than 10 workers, with the modal firm consisting of just the owner. Are there potential high-growth entrepreneurs with the ability to grow their firms beyond this size? And, if so, can public policy help alleviate the constraints that prevent these entrepreneurs from doing so? A large-scale national business plan competition in Nigeria is used to help provide evidence on these two questions. The competition was launched with much fanfare, and attracted almost 24,000 entrants. Random assignment was used to select some of the winners from a pool of semi-finalists, with US
    DOI: 10.1596/1813-9450-7391
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  • 13
    Online Resource
    Online Resource
    Short-Term Impacts of Formalization Assistance and a Bank Information Session on Business Registration and Access to Finance in Malawi (2015)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: 1 Online-Ressource (43 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Campos, Francisco Short-Term Impacts of Formalization Assistance and a Bank Information Session on Business Registration and Access to Finance in Malawi
    Abstract: Despite regulatory efforts designed to make it easier for firms to formalize, informality remains extremely high among firms in Sub-Saharan Africa. In most of the region, business registration in a national registry is separate from tax registration. This paper provides initial results from an experiment in Malawi that randomly allocated firms into a control group and three treatment groups: a) a group offered assistance for costless business registration; b) a group offered assistance with costless business registration and (separate) tax registration; and c) a group offered assistance for costless business registration along with an information session at a bank that ended with the offer of business bank accounts. The study finds that all three treatments had extremely large impacts on business registration, with 75 percent of those offered assistance receiving a business registration certificate. The findings offer a cost-effective way of getting firms to formalize in this dimension. However, in common with other studies, information and assistance has a limited impact on tax registration. The paper measures the short-term impacts of formalization on financial access and usage. Business registration alone has no impact for either men or women on bank account usage, savings, or credit. However, the combination of formalization assistance and the bank information session results in significant impacts on having a business bank account, financial practices, savings, and use of complementary financial products
    DOI: 10.1596/1813-9450-7183
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  • 14
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    Remittances and the Brain Drain Revisited : the Microdata Show That More Educated Migrants Remit More (2009)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (37 p)
    Edition: 2009 World Bank eLibrary
    Parallel Title: Bollard, Albert Remittances and the Brain Drain Revisited
    Abstract: Two of the most salient trends surrounding the issue of migration and development over the past two decades are the large rise in remittances, and an increased flow of skilled migration. However, recent literature based on cross-country regressions has claimed that more educated migrants remit less, leading to concerns that further increases in skilled migration will hamper remittance growth. This paper revisits the relationship between education and remitting behavior using microdata from surveys of immigrants in 11 major destination countries. The data show a mixed pattern between education and the likelihood of remitting, and a strong positive relationship between education and the amount remitted conditional on remitting. Combining these intensive and extensive margins gives an overall positive effect of education on the amount remitted. The microdata then allow investigation as to why the more educated remit more. The analysis finds that the higher income earned by migrants, rather than characteristics of their family situations, explains much of the higher remittances
    DOI: 10.1596/1813-9450-5113
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  • 15
    Online Resource
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    Impact Assessments in Finance and Private Sector Development : What Have We Learned and What Should We Learn? (2009)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (31 p)
    Edition: 2009 World Bank eLibrary
    Parallel Title: McKenzie, David Impact Assessments in Finance and Private Sector Development
    Abstract: Until recently rigorous impact evaluations have been rare in the area of finance and private sector development. One reason for this is the perception that many policies and projects in this area lend themselves less to formal evaluations. However, a vanguard of new impact evaluations on areas as diverse as fostering microenterprise growth, microfinance, rainfall insurance, and regulatory reform demonstrates that in many circumstances serious evaluation is possible. The purpose of this paper is to synthesize and distil the policy and implementation lessons emerging from these studies, use them to demonstrate the feasibility of impact evaluations in a broader array of topics, and thereby help prompt new impact evaluations for projects going forward
    DOI: 10.1596/1813-9450-4944
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  • 16
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    The Impacts of International Migration On Remaining Household Members : Omnibus Results From A Migration Lottery Program (2009)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (46 p)
    Edition: 2009 World Bank eLibrary
    Parallel Title: Gibson, John The Impacts of International Migration On Remaining Household Members
    Abstract: The impacts of international migration on development in the sending countries, and especially the effects on remaining household members, are increasingly studied. However, comparisons of households in developing countries with and without migrants are complicated by a double-selectivity problem: households self-select into migration, and among households involved in migration, some send a subset of members with the rest remaining while other households migrate en masse. The authors address these selectivity issues using the randomization provided by an immigration ballot under the Pacific Access Category of New Zealand’s immigration policy. They survey applicants to the 2002-05 ballots in Tonga and compare outcomes for the remaining household members of emigrants with those for members of similar households that were unsuccessful in the ballots. The immigration laws determine which household members can accompany the principal migrant, providing an instrument to address the second selectivity issue. Using this natural experiment, the authors examine the myriad impacts that migration has on remaining household members, focussing on labor supply, income, durable assets, financial service usage, diet, and physical and mental health. The analysis uses multiple hypothesis testing procedures to examine which impacts are robust. The findings indicate that the overall impact on households left behind is largely negative. The findings also reveal evidence that both sources of selectivity matter, leading studies that fail to adequately address them to misrepresent the impact of migration
    DOI: 10.1596/1813-9450-4956
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  • 17
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    The Microeconomic Determinants of Emigration and Return Migration of the Best and Brightest : Evidence From the Pacific (2009)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (53 p)
    Edition: 2009 World Bank eLibrary
    Parallel Title: Gibson, John The Microeconomic Determinants of Emigration and Return Migration of the Best and Brightest
    Abstract: A unique survey which tracks worldwide the best and brightest academic performers from three Pacific countries is used to assess the extent of emigration and return migration among the very highly skilled, and to analyze, at the microeconomic level, the determinants of these migration choices. Although the estimates indicate that the income gains from migration are very large, not everyone migrates and many return. Within this group of highly skilled individuals, the emigration decision is found to be most strongly associated with preference variables such as risk aversion, patience, and choice of subjects in secondary school, and not strongly linked to either liquidity constraints or the gain in income to be had from migrating. Likewise, the decision to return is strongly linked to family and lifestyle reasons, rather than to the income opportunities in different countries. Overall the data show a relatively limited role for income maximization in distinguishing migration propensities among the very highly skilled, and point to the need to pay more attention to other components of the utility maximization decision
    DOI: 10.1596/1813-9450-4965
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  • 18
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    Who Are The Microenterprise Owners? : Evidence From Sri Lanka On Tokman V. De Soto (2008)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (35 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: de Mel, Suresh Who Are The Microenterprise Owners?
    Keywords: Education ; Employment ; Employment generation ; Entry costs ; Informal sector ; Labor Markets ; Labor force ; Labor organization ; Microfinance ; Productive employment ; Self employed ; Social Protections and Labor ; Tertiary Education ; Work & Working Conditions ; Worker ; Workers ; Education ; Employment ; Employment generation ; Entry costs ; Informal sector ; Labor Markets ; Labor force ; Labor organization ; Microfinance ; Productive employment ; Self employed ; Social Protections and Labor ; Tertiary Education ; Work & Working Conditions ; Worker ; Workers ; Education ; Employment ; Employment generation ; Entry costs ; Informal sector ; Labor Markets ; Labor force ; Labor organization ; Microfinance ; Productive employment ; Self employed ; Social Protections and Labor ; Tertiary Education ; Work & Working Conditions ; Worker ; Workers
    Abstract: Is the vast army of the self-employed in low income countries a source of employment generation? This paper uses data from surveys in Sri Lanka to compare the characteristics of own account workers (non-employers) with wage workers and with owners of larger firms. The authors use a rich set of measures of background, ability, and attitudes, including lottery experiments measuring risk attitudes. Consistent with the International Labor Organization's views of the self employed (represented by Tokman), the analysis finds that two-thirds to three-quarters of the own account workers have characteristics which are more like wage workers than larger firm owners. This suggests the majority of the own account workers are unlikely to become employers. Using a two and a half year panel of enterprises, the authors show that the minority of own account workers who are more like larger firm owners are more likely to expand by adding paid employees. The results suggest that finance is not the sole constraint to growth of microenterprises, and provides an explanation for the low rates of growth of enterprises supported by microlending
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  • 19
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    Does It Pay Firms To Register For Taxes ? : The Impact of Formality On Firm Profitability (2008)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (31 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: McKenzie, David Does It Pay Firms To Register For Taxes ?
    Keywords: Debt Markets ; E-Business ; Employment ; Entrepreneurs ; Finance and Financial Sector Development ; Firm Size ; Firms ; Macroeconomics and Economic Growth ; Medium Enterprises ; Microenterprises ; Microfinance ; Private Sector Development ; Small Enterprises ; Small Firms ; Stores ; Supplier ; Taxation and Subsidies ; Transport ; Transport Economics, Policy and Planning ; Debt Markets ; E-Business ; Employment ; Entrepreneurs ; Finance and Financial Sector Development ; Firm Size ; Firms ; Macroeconomics and Economic Growth ; Medium Enterprises ; Microenterprises ; Microfinance ; Private Sector Development ; Small Enterprises ; Small Firms ; Stores ; Supplier ; Taxation and Subsidies ; Transport ; Transport Economics, Policy and Planning ; Debt Markets ; E-Business ; Employment ; Entrepreneurs ; Finance and Financial Sector Development ; Firm Size ; Firms ; Macroeconomics and Economic Growth ; Medium Enterprises ; Microenterprises ; Microfinance ; Private Sector Development ; Small Enterprises ; Small Firms ; Stores ; Supplier ; Taxation and Subsidies ; Transport ; Transport Economics, Policy and Planning
    Abstract: This paper estimates the impact of registering for taxes on firm profits in Bolivia, the country with the highest levels of informality in Latin America. A new survey of micro and small firms enables the authors to control for a rich set of measures of owner ability and business motivations that can affect both profits and the decision to formalize. The paper identifies the impact of tax registration on business profitability using the distance of a firm from the tax office where registration occurs, conditional on the distance to the city center, as an instrument for registration. Proximity to the tax office provides firms with more information about registration, but is argued to not directly affect profits. The findings show that tax registration leads to significantly higher profits for the firms that the instrument affects. However, there is also evidence of heterogeneous effects of tax formality on profits. Tax registration is found to increase profits for the mid-size firms in the sample, but to lower profits for both the smaller and larger firms, in contrast to the standard view that formality increases profits. The analysis shows that owners of large firms who have managed to stay informal have higher entrepreneurial ability than formal firm owners, in contrast to the standard view (correct among smaller firms) that informal firm owners have low ability
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  • 20
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    Using The Global Positioning System In Household Surveys For Better Economics And Better Policy (2007)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (29 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: McKenzie, David Using The Global Positioning System In Household Surveys For Better Economics And Better Policy
    Keywords: Accessibility ; Air ; Aircraft ; Costs ; E-Business ; Externalities ; Health Monitoring and Evaluation ; Health, Nutrition and Population ; Infrastructure ; Policies ; Private Sector Development ; Railway ; Railway Lines ; Road ; Road Network ; Roads ; Roads and Highways ; Signals ; Training ; Transport ; Transport Economics, Policy and Planning ; Accessibility ; Air ; Aircraft ; Costs ; E-Business ; Externalities ; Health Monitoring and Evaluation ; Health, Nutrition and Population ; Infrastructure ; Policies ; Private Sector Development ; Railway ; Railway Lines ; Road ; Road Network ; Roads ; Roads and Highways ; Signals ; Training ; Transport ; Transport Economics, Policy and Planning ; Accessibility ; Air ; Aircraft ; Costs ; E-Business ; Externalities ; Health Monitoring and Evaluation ; Health, Nutrition and Population ; Infrastructure ; Policies ; Private Sector Development ; Railway ; Railway Lines ; Road ; Road Network ; Roads ; Roads and Highways ; Signals ; Training ; Transport ; Transport Economics, Policy and Planning
    Abstract: Distance and location are important determinants of many choices that economists study. While these variables can sometimes be obtained from secondary data, economists often rely on information that is self-reported by respondents in surveys. These self-reports are used especially for the distance from households or community centers to various features such as roads, markets, schools, clinics, and other public services. There is growing evidence that self-reported distance is measured with error and that these errors are correlated with outcomes of interest. In contrast to self-reports, the Global Positioning System (GPS) can determine almost exact location (typically within 15 meters). The falling cost of GPS receivers (typically below US
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  • 21
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    Measuring Microenterprise Profits : Don't Ask How The Sausage Is Made (2007)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (29 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Woodruff, Christopher Measuring Microenterprise Profits
    Keywords: Bank Policy ; Business Environment ; Business in Development ; Competitiveness and Competition Policy ; Debt Markets ; Developing countries ; Economic Theory and Research ; Finance and Financial Sector Development ; Financial support ; Fungible ; Living Standards ; Macroeconomics and Economic Growth ; Microenterprises ; Microfinance ; Private Sector Development ; Public Sector Development ; Returns ; Tax ; Trust Fund ; Bank Policy ; Business Environment ; Business in Development ; Competitiveness and Competition Policy ; Debt Markets ; Developing countries ; Economic Theory and Research ; Finance and Financial Sector Development ; Financial support ; Fungible ; Living Standards ; Macroeconomics and Economic Growth ; Microenterprises ; Microfinance ; Private Sector Development ; Public Sector Development ; Returns ; Tax ; Trust Fund ; Bank Policy ; Business Environment ; Business in Development ; Competitiveness and Competition Policy ; Debt Markets ; Developing countries ; Economic Theory and Research ; Finance and Financial Sector Development ; Financial support ; Fungible ; Living Standards ; Macroeconomics and Economic Growth ; Microenterprises ; Microfinance ; Private Sector Development ; Public Sector Development ; Returns ; Tax ; Trust Fund
    Abstract: A large share of the world's poor is self-employed. Accurate measurement of profits from microenterprises is therefore critical for studying poverty and inequality, measuring the returns to education, and evaluating the success of microfinance programs. But a myriad of problems plague the measurement of profits. The authors report on a variety of different experiments conducted to better understand the importance of some of these problems and to draw recommendations for collecting profit data. In particular, they (1) examine how far we can reconcile self-reported profits and reports of revenue minus expenses through more detailed questions; (2) examine recall errors in sales and report on the results of experiments which randomly allocated account books to firms; and (3) ask firms how much firms like theirs underreport sales in surveys like this, and have research assistants observe the firms at random times 15-16 times during a month to provide measures for comparison. The authors conclude that firms underreport revenues by about 30 percent, that account diaries have significant effects on both revenues and expenses but not on profits, and that simply asking profits provides a more accurate measure of firm profits than detailed questions on revenues and expenses
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  • 22
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    Migration And Mental Health : Evidence From A Natural Experiment (2007)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (31 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Stillman, Steven Migration And Mental Health
    Keywords: Anxiety ; Children ; Depression ; Families ; Health Effects ; Health, Monitoring and Evaluation ; Health, Nutrition and Population ; Hospital Admission ; Insomnia ; Mental ; Mental Health ; Migrants ; Migration ; People ; Refugees ; Anxiety ; Children ; Depression ; Families ; Health Effects ; Health, Monitoring and Evaluation ; Health, Nutrition and Population ; Hospital Admission ; Insomnia ; Mental ; Mental Health ; Migrants ; Migration ; People ; Refugees ; Anxiety ; Children ; Depression ; Families ; Health Effects ; Health, Monitoring and Evaluation ; Health, Nutrition and Population ; Hospital Admission ; Insomnia ; Mental ; Mental Health ; Migrants ; Migration ; People ; Refugees
    Abstract: People migrate to improve their well-being, whether through an expansion of economic and social opportunities or a reduction in persecution. Yet a large literature suggests that migration can be a stressful process, with potentially negative impacts on mental health, reducing the net benefits of migration. However, to truly understand the effect of migration on mental health one must compare the mental health of migrants to what their mental health would have been had they stayed in their home country. The existing literature is not able to do this and typically settles for comparing the mental health of migrants to that of natives in the destination country, which takes no account of any pre-existing differences between these groups. This paper overcomes the selection problems affecting previous studies of the effect of migration on mental health by examining a migrant lottery program. New Zealand allows a quota of Tongans to immigrate each year with a lottery used to choose among the excess number of applicants. A unique survey conducted by the authors in these two countries allows experimental estimates of the mental health effects of migration to be obtained by comparing the mental health of migrants who were successful applicants in the lottery to the mental health of those who applied to migrate under the quota, but whose names were not drawn in the lottery. Migration is found to lead to improvements in mental health, particularly for women and those with poor mental health in their home country
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  • 23
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    A Land of Milk And Honey With Streets Paved With Gold : Do Emigrants Have Over-Optimistic Expectations About Incomes Abroad ? (2007)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (34 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: McKenzie, David A Land of Milk And Honey With Streets Paved With Gold
    Keywords: Accurate Information ; Annual Income ; Bank ; Consumer ; Consumer Goods ; Demands ; Earnings ; Economic Theory and Research ; Education ; Finance and Financial Sector Development ; Financial Literacy ; Fiscal and Monetary Policy ; Health Systems Development and Reform ; Health, Nutrition and Population ; Household Income ; Income ; Income ; Incomes ; Information ; Labor Markets ; Labor Policies ; Macroeconomics and Economic Growth ; Money ; Population Policies ; Public Sector Development ; Remittances ; Social Protections and Labor ; Accurate Information ; Annual Income ; Bank ; Consumer ; Consumer Goods ; Demands ; Earnings ; Economic Theory and Research ; Education ; Finance and Financial Sector Development ; Financial Literacy ; Fiscal and Monetary Policy ; Health Systems Development and Reform ; Health, Nutrition and Population ; Household Income ; Income ; Income ; Incomes ; Information ; Labor Markets ; Labor Policies ; Macroeconomics and Economic Growth ; Money ; Population Policies ; Public Sector Development ; Remittances ; Social Protections and Labor ; Accurate Information ; Annual Income ; Bank ; Consumer ; Consumer Goods ; Demands ; Earnings ; Economic Theory and Research ; Education ; Finance and Financial Sector Development ; Financial Literacy ; Fiscal and Monetary Policy ; Health Systems Development and Reform ; Health, Nutrition and Population ; Household Income ; Income ; Income ; Incomes ; Information ; Labor Markets ; Labor Policies ; Macroeconomics and Economic Growth ; Money ; Population Policies ; Public Sector Development ; Remittances ; Social Protections and Labor
    Abstract: Millions of people emigrate every year in search of better economic and social opportunities. Anecdotal evidence suggests that emigrants may have over-optimistic expectations about the incomes they can earn abroad, resulting in excessive migration pressure, and in disappointment among those who do migrate. Yet there is almost no statistical evidence on how accurately these emigrants predict the incomes that they will earn working abroad. In this paper the authors combine a natural emigration experiment with unique survey data on would-be emigrants' probabilistic expectations about employment and incomes in the migration destination. Their procedure enables them to obtain moments and quantiles of the subjective distribution of expected earnings in the destination country. The authors find a significant underestimation of both unconditional and conditional labor earnings at all points in the distribution. This underestimation appears driven in part by potential migrants placing too much weight on the negative employment experiences of some migrants, and by inaccurate information flows from extended family, who may be trying to moderate remittance demands by understating incomes
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  • 24
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    Returns To Capital In Microenterprises : Evidence From A Field Experiment (2007)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (37 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Woodruff, Christopher Returns To Capital In Microenterprises
    Keywords: Access to Finance ; Capital stock ; Debt Markets ; Developing countries ; Economic Theory and Research ; Equipment ; Finance and Financial Sector Development ; Investment and Investment Climate ; Investment opportunities ; Macroeconomics and Economic Growth ; Market Interest Rate ; Micorenterprises ; Microfinance ; Microfinance ; Productive Investment ; Return ; Returns ; Access to Finance ; Capital stock ; Debt Markets ; Developing countries ; Economic Theory and Research ; Equipment ; Finance and Financial Sector Development ; Investment and Investment Climate ; Investment opportunities ; Macroeconomics and Economic Growth ; Market Interest Rate ; Micorenterprises ; Microfinance ; Microfinance ; Productive Investment ; Return ; Returns ; Access to Finance ; Capital stock ; Debt Markets ; Developing countries ; Economic Theory and Research ; Equipment ; Finance and Financial Sector Development ; Investment and Investment Climate ; Investment opportunities ; Macroeconomics and Economic Growth ; Market Interest Rate ; Micorenterprises ; Microfinance ; Microfinance ; Productive Investment ; Return ; Returns
    Abstract: Small and informal firms account for a large share of employment in developing countries. The rapid expansion of microfinance services is based on the belief that these firms have productive investment opportunities and can enjoy high returns to capital if given the opportunity. However, measuring the return to capital is complicated by unobserved factors such as entrepreneurial ability and demand shocks, which are likely to be correlated with capital stock. The authors use a randomized experiment to overcome this problem and to measure the return to capital for the average microenterprise in their sample, regardless of whether they apply for credit. They accomplish this by providing cash and equipment grants to small firms in Sri Lanka, and measuring the increase in profits arising from this exogenous (positive) shock to capital stock. After controlling for possible spillover effects, the authors find the average real return to capital to be 5.7 percent a month, substantially higher than the market interest rate. They then examine the heterogeneity of treatment effects to explore whether missing credit markets or missing insurance markets are the most likely cause of the high returns. Returns are found to vary with entrepreneurial ability and with measures of other sources of cash within the household, but not to vary with risk aversion or uncertainty
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  • 25
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    Migration, remittances, poverty, and human capital : conceptual and empirical challenges (2007)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (16 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Sasin, Marcin J Migration, remittances, poverty, and human capital
    Keywords: Government policies ; Health Monitoring and Evaluation ; Health, Nutrition and Population ; Human Capital ; Impact of migration ; International migration ; Migration ; Migration data ; Policy Research ; Policy Research Working Paper ; Population Policies ; Practitioners ; Remittances ; Government policies ; Health Monitoring and Evaluation ; Health, Nutrition and Population ; Human Capital ; Impact of migration ; International migration ; Migration ; Migration data ; Policy Research ; Policy Research Working Paper ; Population Policies ; Practitioners ; Remittances ; Government policies ; Health Monitoring and Evaluation ; Health, Nutrition and Population ; Human Capital ; Impact of migration ; International migration ; Migration ; Migration data ; Policy Research ; Policy Research Working Paper ; Population Policies ; Practitioners ; Remittances
    Abstract: This paper reviews common challenges faced by researchers interested in measuring the impact of migration and remittances on income, poverty, inequality, and human capital (or, in general, "welfare") as well as difficulties confronting development practitioners in converting this research into policy advice. On the analytical side, the paper discusses the proper formulation of a research question, the choice of the analytical tools, as well as the interpretation of the results in the presence of pervasive endogeneity in all decisions surrounding migration. Particular attention is given to the use of instrumental variables in migration research. On the policy side, the paper argues that the private nature of migration and remittances implies a need to carefully spell out the rationale for interventions. It also notices the lack of good migration data and proper evaluations of migration-related government policies. The paper focuses mainly on microeconomic evidence about international migration, but much of the discussion extends to other settings as well
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  • 26
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    Self-Selection Patterns In Mexico-U.S. Migration : The Role of Migration Networks (2007)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (28 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: McKenzie, David Self-Selection Patterns In Mexico-U.S. Migration
    Keywords: Anthropology ; Communities & Human Settlements ; Culture & Development ; Finance and Financial Sector Development ; Financial Literacy ; Gender ; Gender and Social Development ; Health, Nutrition and Population ; Human Migrations and Resettlements ; Immigrants ; Immigration ; Important Policy ; Income Inequality ; Industry ; International Migration ; Job Opportunities ; Labor Market ; Language Proficiency ; Migrant ; Migrants ; Migration ; Population Policies ; Social Development ; Technology Industry ; Voluntary and Involuntary Resettlement ; Anthropology ; Communities & Human Settlements ; Culture & Development ; Finance and Financial Sector Development ; Financial Literacy ; Gender ; Gender and Social Development ; Health, Nutrition and Population ; Human Migrations and Resettlements ; Immigrants ; Immigration ; Important Policy ; Income Inequality ; Industry ; International Migration ; Job Opportunities ; Labor Market ; Language Proficiency ; Migrant ; Migrants ; Migration ; Population Policies ; Social Development ; Technology Industry ; Voluntary and Involuntary Resettlement ; Anthropology ; Communities & Human Settlements ; Culture & Development ; Finance and Financial Sector Development ; Financial Literacy ; Gender ; Gender and Social Development ; Health, Nutrition and Population ; Human Migrations and Resettlements ; Immigrants ; Immigration ; Important Policy ; Income Inequality ; Industry ; International Migration ; Job Opportunities ; Labor Market ; Language Proficiency ; Migrant ; Migrants ; Migration ; Population Policies ; Social Development ; Technology Industry ; Voluntary and Involuntary Resettlement
    Abstract: The authors examine the role of migration networks in determining self-selection patterns of Mexico-U.S. migration. They first present a simple theoretical framework showing how such networks impact on migration incentives at different education levels and, consequently, how they are likely to affect the expected skill composition of migration. Using survey data from Mexico, the authors then show that the probability of migration is increasing with education in communities with low migrant networks, but decreasing with education in communities with high migrant networks. This is consistent with positive self-selection of migrants being driven by high migration costs, and with negative self-selection of migrants being driven by lower returns to education in the U.S. than in Mexico
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