Microenterprise Dynamics in Developing Countries : How Similar are They to Those in the Industrialized World? Evidence from Mexico
A rich panel data set from Mexico is used to study the patterns of entry, exit, and growth of microenterprises and to compare these with the findings of the mainstream theoretical and empirical work on firm dynamics. The Mexican self-employment sec...
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| Format: | Journal Article |
| Language: | English en_US |
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Oxford University Press on behalf of the World Bank
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2006/09/17760670/microenterprise-dynamics-developing-countries-similar-industrialized-world-evidence-mexico http://hdl.handle.net/10986/16438 |
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okr-10986-164382021-04-23T14:03:29Z Microenterprise Dynamics in Developing Countries : How Similar are They to Those in the Industrialized World? Evidence from Mexico Fajnzylber, Pablo Maloney, William Montes Rojas, Gabriel AFFILIATE AGE GROUP ATTRITION BUSINESS FAILURE COLLEGE EDUCATION COLLEGE GRADUATES COMPETITORS COOPERATIVES CREATIVE DESTRUCTION DEBT DEVELOPMENT ECONOMICS DISADVANTAGED WORKERS DISCUSSIONS DISGUISED UNEMPLOYMENT EARNING ECONOMETRICS EDUCATIONAL ATTAINMENT EMPLOYEE EMPLOYMENT EMPLOYMENT ALTERNATIVES EMPLOYMENT COMPOSITION EMPLOYMENT DYNAMICS EMPLOYMENT GROWTH EMPLOYMENT GROWTH RATES EMPLOYMENT LEVELS EMPLOYMENT PROGRAM EMPLOYMENT RATE EMPLOYMENT RATES EMPLOYMENT REPORT EMPLOYMENT SIZE EMPLOYMENT STATUS ENTREPRENEUR ENTREPRENEURIAL ABILITY ENTREPRENEURS ENTREPRENEURSHIP ETHNIC MINORITIES EXPANSION FIRM DYNAMICS FIRM EXIT FIRM GROWTH FIRM SIZE FIRM SIZES FIRM SURVIVAL FIRMS HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN CAPITAL INFORMAL LABOR MARKETS INFORMAL SECTOR INTERNATIONAL LABOUR OFFICE INTERNATIONAL LABOUR ORGANIZATION JOBS LABOR ECONOMICS LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET EXPERIENCE LABOR MARKET POLICIES LABOR MARKETS LABOR REGULATION LABOR TURNOVER LABOUR LABOUR OFFICE LARGE ENTERPRISES LOAN MANUFACTURERS MANUFACTURING INDUSTRIES MICROENTERPRISES MIGRATION MORTALITY MUNICIPALITIES NET JOB CREATION NEW ENTRANTS OCCUPATION OLDER WORKERS PAID WORKERS POLITICAL ECONOMY PRIMARY EDUCATION PRIVATE SECTOR PRODUCTIVE EMPLOYMENT PRODUCTIVITY GROWTH PROFITABILITY SALARIED EMPLOYMENT SALARIED WORKER SALARIED WORKERS SEES SIZE OF FIRM SKILLED WORKERS SMALL BUSINESS SMALL BUSINESSES SMALL ENTERPRISES SMALL FIRM SMALL FIRMS SOCIAL SECURITY SUPPLIERS SURVIVAL ANALYSIS SURVIVAL PROBABILITY TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY UNEMPLOYED UNEMPLOYED INDIVIDUALS UNEMPLOYED WORKERS UNEMPLOYMENT SPELLS UNPAID FAMILY WORKERS UNPAID WORKERS URBAN EMPLOYMENT URBAN EMPLOYMENT SURVEY URBAN WORKERS WAGE SECTOR WAGES WORK FORCE WORKER YOUNG WORKERS A rich panel data set from Mexico is used to study the patterns of entry, exit, and growth of microenterprises and to compare these with the findings of the mainstream theoretical and empirical work on firm dynamics. The Mexican self-employment sector is much larger than its counterpart in the United States, which is reflected in higher unconditional rates of entry into the sector. The evidence for Mexico points to the significant presence of well-performing salaried workers among the likely entrants into self-employment, as opposed to the higher incidence of poorer wageworkers among the entrants into the U.S. self-employment sector. Despite these differences, however, the patterns of entry, survival, and growth with respect to age, education, and many other covariates are very similar in Mexico and the United States. These strong similarities suggest that mainstream models of worker decisions and firm behavior are useful guides for policymaking for the developing-country microenterprise sector. Furthermore, they suggest that, as a first approximation, the developing-country microenterprise should probably be viewed as they are in the advanced countries as offering potentially desirable job opportunities to low-productivity workers. 2013-12-20T20:44:00Z 2013-12-20T20:44:00Z 2006-09-01 Journal Article http://documents.worldbank.org/curated/en/2006/09/17760670/microenterprise-dynamics-developing-countries-similar-industrialized-world-evidence-mexico World Bank Economic Review doi:10.1093/wber/lhl005 http://hdl.handle.net/10986/16438 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research :: Journal Article Latin America & Caribbean Mexico |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AFFILIATE AGE GROUP ATTRITION BUSINESS FAILURE COLLEGE EDUCATION COLLEGE GRADUATES COMPETITORS COOPERATIVES CREATIVE DESTRUCTION DEBT DEVELOPMENT ECONOMICS DISADVANTAGED WORKERS DISCUSSIONS DISGUISED UNEMPLOYMENT EARNING ECONOMETRICS EDUCATIONAL ATTAINMENT EMPLOYEE EMPLOYMENT EMPLOYMENT ALTERNATIVES EMPLOYMENT COMPOSITION EMPLOYMENT DYNAMICS EMPLOYMENT GROWTH EMPLOYMENT GROWTH RATES EMPLOYMENT LEVELS EMPLOYMENT PROGRAM EMPLOYMENT RATE EMPLOYMENT RATES EMPLOYMENT REPORT EMPLOYMENT SIZE EMPLOYMENT STATUS ENTREPRENEUR ENTREPRENEURIAL ABILITY ENTREPRENEURS ENTREPRENEURSHIP ETHNIC MINORITIES EXPANSION FIRM DYNAMICS FIRM EXIT FIRM GROWTH FIRM SIZE FIRM SIZES FIRM SURVIVAL FIRMS HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN CAPITAL INFORMAL LABOR MARKETS INFORMAL SECTOR INTERNATIONAL LABOUR OFFICE INTERNATIONAL LABOUR ORGANIZATION JOBS LABOR ECONOMICS LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET EXPERIENCE LABOR MARKET POLICIES LABOR MARKETS LABOR REGULATION LABOR TURNOVER LABOUR LABOUR OFFICE LARGE ENTERPRISES LOAN MANUFACTURERS MANUFACTURING INDUSTRIES MICROENTERPRISES MIGRATION MORTALITY MUNICIPALITIES NET JOB CREATION NEW ENTRANTS OCCUPATION OLDER WORKERS PAID WORKERS POLITICAL ECONOMY PRIMARY EDUCATION PRIVATE SECTOR PRODUCTIVE EMPLOYMENT PRODUCTIVITY GROWTH PROFITABILITY SALARIED EMPLOYMENT SALARIED WORKER SALARIED WORKERS SEES SIZE OF FIRM SKILLED WORKERS SMALL BUSINESS SMALL BUSINESSES SMALL ENTERPRISES SMALL FIRM SMALL FIRMS SOCIAL SECURITY SUPPLIERS SURVIVAL ANALYSIS SURVIVAL PROBABILITY TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY UNEMPLOYED UNEMPLOYED INDIVIDUALS UNEMPLOYED WORKERS UNEMPLOYMENT SPELLS UNPAID FAMILY WORKERS UNPAID WORKERS URBAN EMPLOYMENT URBAN EMPLOYMENT SURVEY URBAN WORKERS WAGE SECTOR WAGES WORK FORCE WORKER YOUNG WORKERS |
| spellingShingle |
AFFILIATE AGE GROUP ATTRITION BUSINESS FAILURE COLLEGE EDUCATION COLLEGE GRADUATES COMPETITORS COOPERATIVES CREATIVE DESTRUCTION DEBT DEVELOPMENT ECONOMICS DISADVANTAGED WORKERS DISCUSSIONS DISGUISED UNEMPLOYMENT EARNING ECONOMETRICS EDUCATIONAL ATTAINMENT EMPLOYEE EMPLOYMENT EMPLOYMENT ALTERNATIVES EMPLOYMENT COMPOSITION EMPLOYMENT DYNAMICS EMPLOYMENT GROWTH EMPLOYMENT GROWTH RATES EMPLOYMENT LEVELS EMPLOYMENT PROGRAM EMPLOYMENT RATE EMPLOYMENT RATES EMPLOYMENT REPORT EMPLOYMENT SIZE EMPLOYMENT STATUS ENTREPRENEUR ENTREPRENEURIAL ABILITY ENTREPRENEURS ENTREPRENEURSHIP ETHNIC MINORITIES EXPANSION FIRM DYNAMICS FIRM EXIT FIRM GROWTH FIRM SIZE FIRM SIZES FIRM SURVIVAL FIRMS HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN CAPITAL INFORMAL LABOR MARKETS INFORMAL SECTOR INTERNATIONAL LABOUR OFFICE INTERNATIONAL LABOUR ORGANIZATION JOBS LABOR ECONOMICS LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET EXPERIENCE LABOR MARKET POLICIES LABOR MARKETS LABOR REGULATION LABOR TURNOVER LABOUR LABOUR OFFICE LARGE ENTERPRISES LOAN MANUFACTURERS MANUFACTURING INDUSTRIES MICROENTERPRISES MIGRATION MORTALITY MUNICIPALITIES NET JOB CREATION NEW ENTRANTS OCCUPATION OLDER WORKERS PAID WORKERS POLITICAL ECONOMY PRIMARY EDUCATION PRIVATE SECTOR PRODUCTIVE EMPLOYMENT PRODUCTIVITY GROWTH PROFITABILITY SALARIED EMPLOYMENT SALARIED WORKER SALARIED WORKERS SEES SIZE OF FIRM SKILLED WORKERS SMALL BUSINESS SMALL BUSINESSES SMALL ENTERPRISES SMALL FIRM SMALL FIRMS SOCIAL SECURITY SUPPLIERS SURVIVAL ANALYSIS SURVIVAL PROBABILITY TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY UNEMPLOYED UNEMPLOYED INDIVIDUALS UNEMPLOYED WORKERS UNEMPLOYMENT SPELLS UNPAID FAMILY WORKERS UNPAID WORKERS URBAN EMPLOYMENT URBAN EMPLOYMENT SURVEY URBAN WORKERS WAGE SECTOR WAGES WORK FORCE WORKER YOUNG WORKERS Fajnzylber, Pablo Maloney, William Montes Rojas, Gabriel Microenterprise Dynamics in Developing Countries : How Similar are They to Those in the Industrialized World? Evidence from Mexico |
| geographic_facet |
Latin America & Caribbean Mexico |
| description |
A rich panel data set from Mexico is
used to study the patterns of entry, exit, and growth of
microenterprises and to compare these with the findings of
the mainstream theoretical and empirical work on firm
dynamics. The Mexican self-employment sector is much larger
than its counterpart in the United States, which is
reflected in higher unconditional rates of entry into the
sector. The evidence for Mexico points to the significant
presence of well-performing salaried workers among the
likely entrants into self-employment, as opposed to the
higher incidence of poorer wageworkers among the entrants
into the U.S. self-employment sector. Despite these
differences, however, the patterns of entry, survival, and
growth with respect to age, education, and many other
covariates are very similar in Mexico and the United States.
These strong similarities suggest that mainstream models of
worker decisions and firm behavior are useful guides for
policymaking for the developing-country microenterprise
sector. Furthermore, they suggest that, as a first
approximation, the developing-country microenterprise should
probably be viewed as they are in the advanced countries as
offering potentially desirable job opportunities to
low-productivity workers. |
| format |
Journal Article |
| author |
Fajnzylber, Pablo Maloney, William Montes Rojas, Gabriel |
| author_facet |
Fajnzylber, Pablo Maloney, William Montes Rojas, Gabriel |
| author_sort |
Fajnzylber, Pablo |
| title |
Microenterprise Dynamics in Developing Countries : How Similar are They to Those in the Industrialized World? Evidence from Mexico |
| title_short |
Microenterprise Dynamics in Developing Countries : How Similar are They to Those in the Industrialized World? Evidence from Mexico |
| title_full |
Microenterprise Dynamics in Developing Countries : How Similar are They to Those in the Industrialized World? Evidence from Mexico |
| title_fullStr |
Microenterprise Dynamics in Developing Countries : How Similar are They to Those in the Industrialized World? Evidence from Mexico |
| title_full_unstemmed |
Microenterprise Dynamics in Developing Countries : How Similar are They to Those in the Industrialized World? Evidence from Mexico |
| title_sort |
microenterprise dynamics in developing countries : how similar are they to those in the industrialized world? evidence from mexico |
| publisher |
Oxford University Press on behalf of the World Bank |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2006/09/17760670/microenterprise-dynamics-developing-countries-similar-industrialized-world-evidence-mexico http://hdl.handle.net/10986/16438 |
| _version_ |
1764433432237047808 |