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Do Shocks Perpetuate Disparities within and across Informal Firms?: Evidence from the COVID-19 Pandemic in South Asia

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dc.contributor.authorGrover, Arti
dc.contributor.authorPereira-López, Mariana
dc.date.accessioned2023-10-04T14:20:35Z
dc.date.available2023-10-04T14:20:35Z
dc.date.issued2023-10-04
dc.description.abstractUsing three rounds of data from the Business Pulse Survey in South Asia, this paper studies the differential effects of the COVID-19 shock on informal firms. It also captures heterogeneity within informal firms based on the degree and motivation of informality. The findings suggest that the severity of the impact of the COVID-19 shock and the recovery speed are strongly associated with the degree of informality. Firms' external attributes, such as size, sector, age, and gender of the owner, do not explain the depth of the impact. Internal characteristics such as poor management capabilities and education of the manager and owners are strong predictors of vulnerability among informal firms. In particular, necessity firms experience a larger drop in sales relative to the parasitic type of informal firms. To add to this, the adjustment response (for example, the use of digital platforms) of informal firms is smaller, which perpetuates the gap between formal and informal firms. Within informal firms, the parasitic type typically have a smaller adjustment response. These findings have implications for policies to support the private sector in the presence of informality, including considerations pertaining to targeting, modality of support, and the instruments required for designing more impactful programs during shocks.en
dc.identifierhttp://documents.worldbank.org/curated/en/099747310022319502/IDU0e9e499810997504ca1086ba00db6e7f5b180
dc.identifier.doi10.1596/1813-9450-10579
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40426
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; 10579
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCOVID-19
dc.subjectCRISIS
dc.subjectFIRMS
dc.subjectINFORMALITY
dc.subjectRECOVERY
dc.subjectDIGITAL
dc.titleDo Shocks Perpetuate Disparities within and across Informal Firms?en
dc.title.subtitleEvidence from the COVID-19 Pandemic in South Asiaen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleDo Shocks Perpetuate Disparities within and across Informal Firms?: Evidence from the COVID-19 Pandemic in South Asia
okr.date.disclosure2023-10-02
okr.date.doiregistration2025-04-07T08:40:22.526550Z
okr.date.doiregistration2025-04-08T16:19:37.607650Z
okr.date.doiregistration2025-04-09T02:51:15.666920Z
okr.date.lastmodified2023-10-02T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099747310022319502/IDU0e9e499810997504ca1086ba00db6e7f5b180
okr.guid099747310022319502
okr.identifier.docmidIDU-e9e49981-9975-4ca1-86ba-0db6e7f5b180
okr.identifier.doi10.1596/1813-9450-10579
okr.identifier.externaldocumentum34173720
okr.identifier.internaldocumentum34173720
okr.identifier.reportWPS10579
okr.import.id1920
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099747310022319502/pdf/IDU0e9e499810997504ca1086ba00db6e7f5b180.pdfen
okr.region.geographicalSouth Asia
okr.sectorSocial Protection
okr.themeLabor Market Institutions,Job Creation,Human Development and Gender,Data Development and Capacity Building,Social Protection,Social Development and Protection,Private Sector Development,Labor Market Policy and Programs,Public Sector Management,Active Labor Market Programs,E-Government, incl. e-services,Job Quality,Jobs,Data production, accessibility and use,Public Administration,Social protection delivery systems
okr.topicPrivate Sector Development::Private Sector Economics
okr.topicInformation and Communication Technologies::Knowledge Management
okr.topicPoverty Reduction::Equity and Development
okr.unitOffice of the Chief Economist (SARCE)
okr.unitIFC
relation.isAuthorOfPublicationb51303b6-af29-592e-989d-eab9ca69edc9
relation.isAuthorOfPublication.latestForDiscoveryb51303b6-af29-592e-989d-eab9ca69edc9
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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