Is Informality Good for Business? The Impacts of IDP Inflows on Formal Firms

This paper examines the effects of large inflows of internally displaced persons (IDP), who are primarily absorbed by the informal sector, on the behavior of formal manufacturing firms in Colombia. To identify causal effects, the analysis employs a...

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Main Authors:	Rozo, Sandra, Winkler, Hernan
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	INFORMAL ECONOMY INFORMALITY FORCED DISPLACEMENT MIGRATION INTERNALLY DISPLACED PERSON TAX COMPLIANCE MANUFACTURING FIRM PERFORMANCE
Online Access:	http://documents.worldbank.org/curated/en/888741570457890807/Is-Informality-Good-for-Business-The-Impacts-of-IDP-Inflows-on-Formal-Firms http://hdl.handle.net/10986/32519

id	okr-10986-32519
recordtype	oai_dc
spelling	okr-10986-325192022-09-19T12:16:31Z Is Informality Good for Business? The Impacts of IDP Inflows on Formal Firms Rozo, Sandra Winkler, Hernan INFORMAL ECONOMY INFORMALITY FORCED DISPLACEMENT MIGRATION INTERNALLY DISPLACED PERSON TAX COMPLIANCE MANUFACTURING FIRM PERFORMANCE This paper examines the effects of large inflows of internally displaced persons (IDP), who are primarily absorbed by the informal sector, on the behavior of formal manufacturing firms in Colombia. To identify causal effects, the analysis employs annual, firm-level panel data between 1995 and 2010 and exploits that when conflict intensifies, forcefully displaced individuals tend to migrate to municipalities where people from their origin locations settled earlier. The paper finds that large inflows of IDP induce sizable, negative effects on the intensive and extensive margins of production of formal firms. These effects are stronger for firms operating in sectors that face a stronger competition from the informal economy. 2019-10-10T13:58:57Z 2019-10-10T13:58:57Z 2019-10 Working Paper http://documents.worldbank.org/curated/en/888741570457890807/Is-Informality-Good-for-Business-The-Impacts-of-IDP-Inflows-on-Formal-Firms http://hdl.handle.net/10986/32519 English Policy Research Working Paper;No. 9035 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Colombia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INFORMAL ECONOMY INFORMALITY FORCED DISPLACEMENT MIGRATION INTERNALLY DISPLACED PERSON TAX COMPLIANCE MANUFACTURING FIRM PERFORMANCE
spellingShingle	INFORMAL ECONOMY INFORMALITY FORCED DISPLACEMENT MIGRATION INTERNALLY DISPLACED PERSON TAX COMPLIANCE MANUFACTURING FIRM PERFORMANCE Rozo, Sandra Winkler, Hernan Is Informality Good for Business? The Impacts of IDP Inflows on Formal Firms
geographic_facet	Latin America & Caribbean Colombia
relation	Policy Research Working Paper;No. 9035
description	This paper examines the effects of large inflows of internally displaced persons (IDP), who are primarily absorbed by the informal sector, on the behavior of formal manufacturing firms in Colombia. To identify causal effects, the analysis employs annual, firm-level panel data between 1995 and 2010 and exploits that when conflict intensifies, forcefully displaced individuals tend to migrate to municipalities where people from their origin locations settled earlier. The paper finds that large inflows of IDP induce sizable, negative effects on the intensive and extensive margins of production of formal firms. These effects are stronger for firms operating in sectors that face a stronger competition from the informal economy.
format	Working Paper
author	Rozo, Sandra Winkler, Hernan
author_facet	Rozo, Sandra Winkler, Hernan
author_sort	Rozo, Sandra
title	Is Informality Good for Business? The Impacts of IDP Inflows on Formal Firms
title_short	Is Informality Good for Business? The Impacts of IDP Inflows on Formal Firms
title_full	Is Informality Good for Business? The Impacts of IDP Inflows on Formal Firms
title_fullStr	Is Informality Good for Business? The Impacts of IDP Inflows on Formal Firms
title_full_unstemmed	Is Informality Good for Business? The Impacts of IDP Inflows on Formal Firms
title_sort	is informality good for business? the impacts of idp inflows on formal firms
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/888741570457890807/Is-Informality-Good-for-Business-The-Impacts-of-IDP-Inflows-on-Formal-Firms http://hdl.handle.net/10986/32519
_version_	1764476712294285312

Is Informality Good for Business? The Impacts of IDP Inflows on Formal Firms

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