Publication: Gender in Bolivian Production : Reducing Differences in Formality and Productivity of Firms
Date
2009-07-01
ISSN
Published
2009-07-01
Author(s)
World Bank
Abstract
A main goal of this study is to
determine the variables responsible for the lower formality
of women-owned businesses. The companion study (the World
Bank 2007a) shows that Bolivia's informal sector is the
largest in Latin America by many definitions and measures.
It also provides a rationale for promoting formality given
the many negative effects of a high rate of informality.
These negative effects include a lower growth potential as
informal firms tend to be less productive owing to limited
access to physical, financial, and human capital, and a
smaller scale of operations; negative fiscal impacts as
informal firms "free ride" on services provided
with fiscal resources; and negative social externalities,
including weaker rule of law and public institutions,
increased corruption, and weakened ability to enforce
contracts. A second goal of this study is to identify
gender-based productivity constraints that hinder the growth
of female-owned businesses. First, author's analysis of
the impact of formality on profitability shows that the
gains of formalization for most female-owned businesses
increase as the firms grow. Second, author's find that
the smaller scale of operation of female-owned firms is one
of the main causes of gender-based differences in
productivity and profitability. However, most of the
differences between male and female-owned firms diminish or
disappear as firms grow.
Citation
“World Bank. 2009. Gender in Bolivian Production :
Reducing Differences in Formality and Productivity of Firms. World Bank Country Study. © World Bank. http://hdl.handle.net/10986/2669 License: CC BY 3.0 IGO.”