de Mel, SureshMcKenzie, DavidWoodruff, Christopher2014-04-212014-04-212013-04American Economic Journal: Applied Economics1945-778210.1257/app.5.2.122https://hdl.handle.net/10986/17927A field experiment in Sri Lanka provides informal firms incentives to formalize. Information about the registration process and reimbursement of direct costs does not increase registration. Payments equivalent to one-half to one month (alternatively, two months) of the median firm's profits leads to registration of around one-fifth (alternatively, one-half ) of firms. Land ownership issues are the most common reason for not registering. Follow-up surveys 15 to 31 months later show higher mean profits, but largely in a few firms that grew rapidly. We find little evidence for other changes in behavior, but formalized firms express more trust in the state.en-USCC BY 3.0 IGOfirm behaviorfirm performanceentrepreneurshipindustrializationmanufacturingservice industriestechnologyMicrodata SetJournal ArticleAmerican Economic Association10.1596/17927