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Book
How Should the Government Bring Small Firms into the Formal System? : Experimental Evidence from Malawi
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Year: 2018 Publisher: Washington, D.C. : The World Bank,

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Developing country governments seek to reduce the pervasive informality of firms for multiple reasons: increasing the tax base, helping firms access formal markets and grow, increasing the rule of law, and as a means to obtain data that can be used for other government functions. However, there is debate as to the best approach for achieving these goals. This study conducted a randomized experiment in Malawi to test three alternatives: (a) assisting firms to obtain a business registration certificate that offers access to formal markets but imposes no tax obligations; (b) assisting firms to obtain business registration and tax registration; and (c) supplementing the assistance to obtain business registration with a bank information session intended to help firms utilize one of the key potential benefits of formalizing. The study finds incredibly high demand for obtaining a formal status that is separate from tax obligations, and very low take-up of tax registration. Business registration alone has no impact on access to formal markets or firm performance. However, coupling registration assistance with the bank information session increases the use of formal financial services, and results in increases in firm sales by 20 percent and profits by 15 percent. The results highlight the advantages of separating business and tax registration, but also the need to assist firms in benefiting from their new formal status.


Book
Short-Run Welfare Impacts of Factory Jobs : Experimental Evidence from Ethiopia
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Year: 2020 Publisher: Washington, D.C. : The World Bank,

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Many countries in Sub-Saharan Africa face a rapidly growing population and labor force in demand of good jobs. Ethiopia has reacted to this challenge by prioritizing large-scale industrial development through the construction of industrial parks to drive exports, job creation, and growth. However, the African experience with industrial parks so far has been mixed. To provide further evidence on the welfare effects of factory jobs in Ethiopia, this study conducted an experiment that facilitated the job application and onboarding process for young female job seekers at three factories. Using panel data from 827 applicants, the study finds that the extra support increased the likelihood of being employed in the treatment group in the short run, largely driven by wage and factory work. Further, the intervention raised reported monthly income by nearly 30 percent in the treatment group. However, the study also finds an adverse impact on health outcomes as well as downward adjustments of applicants' expectations and perceptions of the earnings potential and desirability of factory work in response to the treatment.


Book
Caught in a Productivity Trap : A Distributional Perspective on Gender Differences in Malawian Agriculture
Authors: --- ---
Year: 2013 Publisher: Washington, D.C., The World Bank,

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In targeting poverty gains, sub-Saharan African governments have emphasized the alleviation of gender differences in agricultural productivity. The empirical studies on the gender gap, however, have frequently used data that were limited regarding geographic and topical coverage, and/or details on intra-household dynamics. The study provides a nationally-representative analysis of the gender gap in Malawi, and decomposes it, for the first time, at the mean and at selected points of the agricultural productivity distribution into (i) a portion driven by gender differences in levels of observable attributes (the endowment effect), and (ii) a portion driven by gender differences in returns to the same set of observables (the structure effect). Sequentially, the authors unpack the relative contributions of different factors towards the gender gap, and suggest future research priorities to inform policy interventions. The authors find that while female-managed plots are, on average, 25 percent less productive, 82 percent of this differential is explained by differences in endowments, mainly due to high-value crop cultivation and levels of household adult male labor inputs. The factors driving the structure effect include child dependency ratio and effectiveness of household adult male labor and inorganic fertilizer. The gender gap increases across the productivity distribution, ranging from 22 percent at the 10th percentile to 37 percent at the 90th percentile. While it is explained predominantly by the endowment effect in the first half of the distribution, the contribution of the structure effect towards the gender gap increases steadily above the median, standing at 34 percent at the 90th percentile.


Book
The Next Wave of Deaths from Ebola? The Impact of Health Care Worker Mortality
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Year: 2015 Publisher: Washington, D.C., The World Bank,

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The ongoing Ebola outbreak in West Africa has put a huge strain on already weak health systems. Ebola deaths have been disproportionately concentrated among health care workers, exacerbating existing skill shortages in Guinea, Liberia, and Sierra Leone in a way that will negatively affect the health of the populations even after Ebola has been eliminated. This paper combines data on cumulative health care worker deaths from Ebola, the stock of health care workers and mortality rates pre-Ebola, and coefficients that summarize the relationship between health care workers in a given country and rates of maternal, infant, and under-five mortality. The paper estimates how the loss of health care workers to Ebola will likely affect non-Ebola mortality even after the disease is eliminated. It then estimates the size of the resource gap that needs to be filled to avoid these deaths, and to reach the minimum thresholds of health coverage described in the Millennium Development Goals. Maternal mortality could increase by 38 percent in Guinea, 74 percent in Sierra Leone, and 111 percent in Liberia due to the reduction in health personnel caused by the epidemic. This translates to an additional 4,022 women dying per year across the three most affected countries. To avoid these deaths, 240 doctors, nurses, and midwives would need to be immediately hired across the three countries. This is a small fraction of the 43,565 doctors, nurses, and midwives that would need to be hired to achieve the adequate health coverage implied by the Millennium Development Goals. Substantial investment in health systems is urgently required not only to improve future epidemic preparedness, but also to limit the secondary health effects of the current epidemic owing to the depletion of the health workforce.


Book
Business Training and Mentoring : Experimental Evidence from Women-Owned Microenterprises in Ethiopia
Authors: --- ---
Year: 2021 Publisher: Washington, D.C. : The World Bank,

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Recent research shows that microenterprises in developing countries are constrained by their managerial capacity, especially in the areas of marketing, record keeping, financial planning, and stock control. In a stratified randomized controlled trial, experienced businesswomen in Ethiopia were given a formal business training that addressed these constraints. A second-stage mentoring component in which a random selection of female mentees within the social and business network of the trainees from the first-stage business training received customized mentoring from these "trained mentors." Pooled results using three rounds of post-training surveys carried out over three years show that business training causes profit and sales to improve by 0.21 standard deviation, while business practices improve by 0.13 standard deviation. The overall impact of mentoring is muted-strong impacts are observed on the adoption of business practices among mentees, but there is no statistically significant impact on profits.


Book
Tackling the Global Profitarchy : Gender and the Choice of Business Sector
Authors: --- ---
Year: 2019 Publisher: Washington, D.C. : The World Bank,

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Sectoral segregation is often used to explain a large part of a well-documented gender earnings gap in business profits. Women tend to sort into different sectors than men, and the sectors dominated by women tend to be less profitable. This paper investigates the horizontal dimension of sectoral segregation by studying global data on female and male enterprises operating in sectors that are typically dominated by the same and opposite sex. The analysis uses the novel Future of Business dataset, which spans 97 countries and was administered to enterprise owners, managers, and employees who use Facebook. The analysis finds that some of the earnings gap can indeed be explained by sector choice: female-owned businesses in male-dominated sectors make significantly higher profits than those in traditionally female sectors. The evidence points to a hierarchy of earnings, with male-owned businesses in male-dominated sectors earning the most, women in male-dominated sectors and men in female-concentrated sectors in the middle tier, and women in female-concentrated sectors at the bottom. Correlational analysis suggests that women who own businesses in male-dominated sectors are younger, married, and more likely to have inherited the business than women in female-concentrated sectors. They have similar education to women in female-concentrated sectors and present higher self-efficacy but lower entrepreneurial identity and commitment to the sector. Male support networks appear to be key for female-owned firms, with co-ownership with husbands and male role models factoring into the decision to cross over.


Book
Can Job Training Decrease Women'S Self-Defeating Biases? Experimental Evidence from Nigeria
Authors: --- ---
Year: 2017 Publisher: Washington, D.C. : The World Bank,

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Occupational segregation is a central contributor to the gap between male and female earnings worldwide. As new sectors of employment emerge, a key question is whether this pattern is replicated. This paper examines this question by focusing on the emerging information and communications technology sector in Nigeria. Using a randomized control trial, the paper examines the impacts of an information and communications technology training intervention that targeted university graduates in five major cities. The analysis finds that after two years the treatment group was 26 percent more likely to work in the information and communications technology sector. The program appears to have succeeded only in shifting employment to the new sector, as it had no average impact on the overall likelihood of being employed. However, viewed through the lens of occupational segregation, the program had a surprising effect. For women who at baseline were implicitly biased against associating women with professional attributes, the likelihood that the program induced switching into the information and communications technology sector was more than three times as large than that of unbiased women. These results suggest that training programs can help individuals overcome self-defeating biases that could hamper mobility and reduce efficiency in the labor market.


Book
Two heads are better than one : agricultural production and investment in Côte D'Ivoire
Authors: --- ---
Year: 2022 Publisher: Washington, District of Columbia : World Bank,

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Low levels of agricultural productivity and investment hinder economic growth in developing countries. This paper presents results from a field experiment in Côte d'Ivoire, which randomized wives' participation in an agricultural extension training for rubber, a male-dominated export crop that takes six years to start producing latex but requires upfront care. The training included a planning portion, consisting of filling out an action plan for rubber farming over the next two years, and a skills portion. In the without-wife group, households witnessed a 26.4 percent drop in the value of the crop harvested and a 18.4 percent drop in productivity, with labor going to planting rubber seedlings. In the group with wife participation, households had higher levels of investment (planting 20 percent more rubber seedlings) and were able to maintain pre-program levels of agricultural production on older trees and other crops. These households increased their labor hours and agricultural input use, resulting in no drop in overall production or productivity. This outcome did not come through increased skills or incentives. Rather, underlying these results are increases in planned agricultural management by wives, increased retention of the action plan, and a reduction in gendered task division. The results show how including women in economic planning can improve the efficiency of household farm production and promote higher levels of investment.


Book
Gender and Agriculture : Inefficiencies, Segregation, and Low Productivity Traps
Authors: --- ---
Year: 2013 Publisher: Washington, D.C., The World Bank,

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Women make essential contributions to agriculture in developing countries, where they constitute approximately 43 percent of the agricultural labor force. However, female farmers typically have lower output per unit of land and are much less likely to be active in commercial farming than their male counterparts. These gender differences in land productivity and participation between male and female farmers are due to gender differences in access to inputs, resources, and services. In this paper, the authors review the evidence on productivity differences and access to resources. They discuss some of the reasons for these differences, such as differences in property rights, education, control over resources (e.g., land), access to inputs and services (e.g., fertilizer, extension, and credit), and social norms. Although women are less active in commercial farming and are largely excluded from contract farming, they often provide the bulk of wage labor in the nontraditional export sector. In general, gender gaps do not appear to fall systematically with growth, and they appear to rise with GDP per capita and with greater access to resources and inputs. Active policies that support women's access and participation, not just greater overall access, are essential if these gaps are to be closed. The gains in terms of greater productivity of land and overall production are likely to be large.


Book
Short-Term Impacts of Formalization Assistance and a Bank Information Session on Business Registration and Access to Finance in Malawi
Authors: --- ---
Year: 2015 Publisher: Washington, D.C., The World Bank,

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Despite regulatory efforts designed to make it easier for firms to formalize, informality remains extremely high among firms in Sub-Saharan Africa. In most of the region, business registration in a national registry is separate from tax registration. This paper provides initial results from an experiment in Malawi that randomly allocated firms into a control group and three treatment groups: a) a group offered assistance for costless business registration; b) a group offered assistance with costless business registration and (separate) tax registration; and c) a group offered assistance for costless business registration along with an information session at a bank that ended with the offer of business bank accounts. The study finds that all three treatments had extremely large impacts on business registration, with 75 percent of those offered assistance receiving a business registration certificate. The findings offer a cost-effective way of getting firms to formalize in this dimension. However, in common with other studies, information and assistance has a limited impact on tax registration. The paper measures the short-term impacts of formalization on financial access and usage. Business registration alone has no impact for either men or women on bank account usage, savings, or credit. However, the combination of formalization assistance and the bank information session results in significant impacts on having a business bank account, financial practices, savings, and use of complementary financial products.

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