Enhancing the Benefits of Formalization: Experimental Evidence from the Introduction of the Entreprenant Status in Benin

Wednesday, 11 January, 2017
Abstract: 
Using a randomized experiment, we show that enhancing the benefits of formalization through personalized assistance induces more firms to formalize. However, formalization appears to offer limited benefits to the firms, and the costs of assistance are high, suggesting that such enhanced formalization efforts are unlikely to be cost effective.