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Informality and the Life Cycle of Plants

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dc.contributor.authorSarıkaya, Furkan
dc.contributor.authorTamkoç, M. Nazim
dc.contributor.authorTorres, Jesica
dc.date.accessioned2025-01-09T21:12:46Z
dc.date.available2025-01-09T21:12:46Z
dc.date.issued2025-01-09
dc.description.abstractThis paper documents the life cycle of formal and informal plants using five waves of the Mexican establishment census. Formal plants begin operations with three times more workers than informal plants and exhibit faster growth rates. Throughout their life cycle, formal establishments more than double their size, while informal plants increase their size by only 77%. A general equilibrium model is developed to quantify the aggregate economic losses stemming from these growth rate disparities. In the model, plants grow through productivity investments, and informality emerges from incomplete enforcement. In equilibrium, informal plants exhibit flatter life cycle profiles to avoid detection and taxation. Model parameters are calibrated to match key properties of plant size distribution and the life cycle of plants in Mexico. Quantitative results indicate that a revenue-neutral full enforcement increases aggregate output and the overall growth rate by sixteen and twenty-five percent relative to the benchmark, respectively.en
dc.identifierhttp://documents.worldbank.org/curated/en/099352501082542215/IDU18a1c7cd01033f14b7a1805c1a13a57e72335
dc.identifier.doi10.1596/1813-9450-11022
dc.identifier.doihttps://doi.org/10.1596/1813-9450-11022
dc.identifier.urihttps://hdl.handle.net/10986/42651
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11022
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectINFORMALITY
dc.subjectLIFE-CYCLE
dc.subjectDEVELOPMENT
dc.subjectPRODUCTIVITY
dc.subjectDISTORTIONS
dc.titleInformality and the Life Cycle of Plantsen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleInformality and the Life Cycle of Plants
okr.date.disclosure2025-01-09
okr.date.doiregistration2025-04-14T11:52:27.302259Z
okr.date.doiregistration2025-04-25T02:24:50.555436Z
okr.date.lastmodified2025-01-08T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099352501082542215/IDU18a1c7cd01033f14b7a1805c1a13a57e72335
okr.guid099352501082542215
okr.identifier.docmidIDU-8a1c7cd0-033f-4b7a-805c-a13a57e72335
okr.identifier.doi10.1596/1813-9450-11022
okr.identifier.externaldocumentum34443901
okr.identifier.internaldocumentum34443901
okr.identifier.reportWPS11022
okr.import.id6261
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099352501082542215/pdf/IDU18a1c7cd01033f14b7a1805c1a13a57e72335.pdfen
okr.region.geographicalWorld
okr.topicIndustry::Industrial and Consumer Services and Products
okr.topicSocial Protections and Labor::Skills Development and Labor Force Training
okr.topicScience and Technology Development::Innovation
okr.topicMacroeconomics and Economic Growth::Economic Modeling and Statistics
okr.unitEnterprise Analysis-WB (DECEA)
relation.isAuthorOfPublicationecb386cc-60ee-44ae-8ae1-038d364519e0
relation.isAuthorOfPublication.latestForDiscoveryecb386cc-60ee-44ae-8ae1-038d364519e0
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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