World Bank2012-03-192012-03-192009-07-01978-0-8213-8014-7https://hdl.handle.net/10986/2669A 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.CC BY 3.0 IGOACCESS TO CAPITALACCESS TO CREDITACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCESS TO LOANSAGE OF RETIREMENTAGRICULTURAL ACTIVITIESBANK CREDITBANK LOANBANK LOANSBANKSBENEFICIARIESBORROWINGBRIBESBUSINESS ACTIVITYBUSINESS ASSOCIATIONSBUSINESS LOANSBUSINESS OWNERBUSINESS OWNERSBUSINESS PLANSCALCULATIONCALCULATIONSCAPACITY OF WOMENCAPITAL STOCKCARE FOR CHILDRENCHILD CARECOLLATERALCONTRIBUTIONSCORRUPTIONCOST OF CREDITCREDIT ASSOCIATIONSCREDIT INSTITUTIONSCREDIT PROGRAMSCRIMECURRENCYCUSTOMCUSTOMER BASECYCLE OF POVERTYDAY-CAREDEBTDEVELOPMENT BANKDISABILITYDISABILITY BENEFITSDISCRIMINATIONDISCRIMINATION AGAINST WOMENDISMISSALDISMISSALSDIVORCED WOMENEARNING CAPACITYEARNINGSECONOMIC ACTIVITYECONOMIC COOPERATIONECONOMIC EMPOWERMENTECONOMIC GROWTHECONOMIC OPPORTUNITIESECONOMIC POLICYECONOMIES OF SCALEEDUCATION OF WOMENEDUCATIONAL ACHIEVEMENTEDUCATIONAL ATTAINMENTEDUCATIONAL LEVELSEMPLOYEEEMPLOYEREMPLOYERSEMPLOYMENT OPPORTUNITIESEMPLOYMENT STATUSENROLLMENTENTREPRENEURIAL ABILITYENVIRONMENT FOR WOMENEXCLUSIONEXPENDITUREFAMILIESFAMILY INCOMEFAMILY RESPONSIBILITIESFAMILY RESPONSIBILITIES OF WOMENFEMALEFEMALE BUSINESSFEMALE EMPLOYEESFEMALE EMPLOYMENTFEMALE ENTERPRISEFEMALE ENTERPRISESFEMALE ENTREPRENEURSFEMALE LABORFEMALE LABOR FORCEFEMALE LABOR FORCE PARTICIPATIONFEMALE POPULATIONFEMALE-OWNED BUSINESSFEMALE-OWNED BUSINESSESFEMALESFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL LITERACYFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL SUPPORTFINANCING MECHANISMSFISCAL RESOURCESFORMAL BANKINGFORMAL BANKSFORMAL CREDITFORMAL EDUCATIONFORMAL SAVINGSFORMAL WORKFORCEGENDERGENDER ACTIONGENDER ANALYSISGENDER DIFFERENCESGENDER GAPGENDER GAPSGENDER ROLESGENDER STEREOTYPESGENDER WAGE GAPSGIRLSGROWTH PLANSHANDICRAFTSHEALTH INSURANCEHOMEHOMESHOUSEHOLD BUDGETHOUSEHOLD CHORESHOUSEHOLD INCOMEHOUSEHOLD SPENDINGHOUSEHOLD WELFAREHOUSEHOLDSHUMAN CAPITALHUSBANDHUSBANDSINCOME LEVELSINDIGENOUS WOMENINEQUALITIESINFORMAL SAVINGINFORMAL SECTORINFORMAL SECTORSINFORMAL WORKERINFORMATION SYSTEMINPUT PRICESINSURANCEINTEREST RATESINTERNATIONAL BANKJOB SECURITYLABOR FORCELABOR FORCE PARTICIPATIONLABOR FORCESLABOR LAWLABOR LAWSLABOR MARKETLABOR MARKETSLABOUR ORGANIZATIONLACK OF ACCESSLACK OF INFORMATIONLARGE FIRMSLEGAL STATUSLEVEL OF EDUCATIONLIMITED ACCESSLOAN APPLICATIONSMARITAL STATUSMARKET CONSTRAINTSMARKETINGMARKETING CAMPAIGNSMARRIED MENMARRIED WOMENMATERNITY BENEFITSMATERNITY LEAVEMICRO CREDITMICRO ENTERPRISESMICRO-CREDITMICRO-ENTERPRISEMICRO-FINANCEMICRO-FINANCE INSTITUTIONSMICROCREDITMICROFINANCEMINISTRY OF WOMENMOBILITY FOR WOMENNEW MARKETSNUTRITIONOPPORTUNITIES FOR WOMENPARTICIPATION OF WOMENPENSIONPENSION FUNDSPENSION SYSTEMPHYSICAL CAPITALPRIVATIZATIONPROBABILITYPRODUCTIVE CAPITALPRODUCTIVITYPROFITABILITYPROPERTY RIGHTSPUBLIC INVESTMENTRATES OF RETURNREAL ESTATERECEIPTSREPAYMENTRULE OF LAWSALARIED WORKERSSALARYSAVINGSSAVINGS ACCOUNTSELF-EMPLOYMENTSELF-SUFFICIENCYSENIORSINGLE WOMANSINGLE WOMENSMALL ENTERPRISESMALL ENTERPRISESSMALL LOANSSOCIAL EXPECTATIONSSOCIAL SECURITYSOURCES OF FINANCESTART-UPSTART-UPSSUPPLY OF CREDITTERM CONTRACTSTERMINATIONUNDPUNITED NATIONSUNITED NATIONS DEVELOPMENT PROGRAMMEUNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENTUNMARRIED WOMENURBAN AREASUSAIDWAGEWAGE GAPWAGESWIFEWILLWOMANWOMEN BUSINESS OWNERSWORK HOURSWORKING CAPITALWORKING MOTHERSYEARS OF SERVICEYOUNG CHILDRENWorld Bank10.1596/978-0-8213-8014-7