The Burden of Water Shortages on Informal Firms

The informal sector in developing economies is a significant source of livelihood for a sizable portion of the population. This study uncovers the effect of poor water infrastructure on the productivity of informal firms. This is achieved using fir...

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Bibliographic Details
Main Author: Islam, Asif
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
Online Access:http://documents.worldbank.org/curated/en/115711527691541143/The-burden-of-water-shortages-on-informal-firms
http://hdl.handle.net/10986/29886
Description
Summary:The informal sector in developing economies is a significant source of livelihood for a sizable portion of the population. This study uncovers the effect of poor water infrastructure on the productivity of informal firms. This is achieved using firm-level data for 12 developing economies between 2009 and 2014. The findings indicate that an increase of one standard deviation of the total duration of water shortages in a month can lead to annual average losses of about 14.5 percent of the monthly sales per worker for the average informal firm in the sample that uses water for business activities.