Legitimacy and the Benefits of Firm Formalization

References

• Abadie A, Imbens GW (2006) Large sample properties of matching estimators for average treatment effects. Econometrica 74(1):235–267.Crossref, Google Scholar
• Aga GA, Reilly B (2011) Access to credit and informality among micro and small enterprises in Ethiopia. Internat. Rev. Appl. Econom. 25(3):313–329.Crossref, Google Scholar
• Aldrich HE, Fiol CM (1994) Fools rush in? The institutional context of industry creation. Acad. Management Rev. 19(4):645–670.Crossref, Google Scholar
• Altonji JG, Elder TE, Taber CR (2005) Selection on observed and unobserved variables: Assessing the effectiveness of Catholic schools. J. Political Econom. 113(1):151–184.Crossref, Google Scholar
• Autio E, Fu K (2015) Economic and political institutions and entry into formal and informal entrepreneurship. Asia Pacific J. Management 32(1):67–94.Crossref, Google Scholar
• Baum JA, Oliver C (1991) Institutional linkages and organizational mortality. Admin. Sci. Quart. 36(2):187–218.Crossref, Google Scholar
• Blackman A, Shih J-S, Evans D, Batz M, Newbold S, Cook J (2006) The benefits and costs of informal sector pollution control: Mexican brick kilns. Environment Development Econom. 11(5):603–627.Crossref, Google Scholar
• Castells M, Portes A (1989) World underneath: The origins, dynamics, and effects of the informal economy. Roberts BR, Sassen-Koob S, eds. The Informal Economy: Studies in Advanced and Less Developed Countries (John Hopkins University Press, Baltimore), 11–37.Google Scholar
• Charmes J (2012) The informal economy worldwide: Trends and characteristics. Margin: J. Appl. Econom. Res. 6(2):103–132.Crossref, Google Scholar
• Chen MA (2006) Rethinking the informal economy: Linkages with the formal economy and the formal regulatory environment. Guha-khasnobis B, Kanbur R, Ostrom E, eds. Linking the Formal and Informal Economy: Concepts and Policies (Oxford University Press, Oxford, UK), 75–92.Crossref, Google Scholar
• Chickering AL, Salahdine M, eds. (1991) The Silent Revolution: The Informal Sector in Five Asian and Near Eastern Countries (ICS Press, San Francisco).Google Scholar
• Dabla-Norris E, Gradstein M, Inchauste G (2008) What causes firms to hide output? The determinants of informality. J. Development Econom. 85(1–2):1–27.Crossref, Google Scholar
• de Mel S, McKenzie DD, Woodruff C (2013) The demand for, and consequences of, formalization among informal firms in Sri Lanka. Amer. Econom. J.: Appl. Econom. 5(2):122–150.Crossref, Google Scholar
• de Soto H (1989) The Other Path: The Economic Answer to Terrorism (Harper Collins, New York).Google Scholar
• Djankov S, La Porta R, Lopez-de Silanes F, Shleifer A (2002) The regulation of entry. Quart. J. Econom. 117(1):1–37.Crossref, Google Scholar
• Dobrev S (2001) Revisiting organizational legitimation cognitive diffusion and sociopolitical factors in the evolution of Bulgarian newspaper enterprises, 1846–1992. Organ. Stud. 22(3):419–444.Crossref, Google Scholar
• Fafchamps M (1996) The enforcement of commercial contracts in Ghana. World Development 24(3):427–448.Crossref, Google Scholar
• Fajnzylber P, Maloney WF, Montes-Rojas GV (2011) Does formality improve micro-firm performance? Evidence from the Brazilian SIMPLES program. J. Development Econom. 94(2):262–276.Crossref, Google Scholar
• Fortin B, Marceau N, Savard L (1997) Taxation, wage controls and the informal sector. J. Public Econom. 66(2):293–312.Crossref, Google Scholar
• Friedman E, Johnson S, Kaufmann D, Zoido-Lobaton P (2000) Dodging the grabbing hand: The determinants of unofficial activity in 69 countries. J. Public Econom. 76(3):459–493.Crossref, Google Scholar
• Granovetter M (1985) Economic action and social structure: The problem of embeddedness. Amer. J. Sociol. 91(3):481–510.Crossref, Google Scholar
• Hannan MT, Freeman J (1977) The population ecology of organizations. Amer. J. Sociol. 82(5):929–964.Crossref, Google Scholar
• Hannan MT, Freeman J (1984) Structural inertia and organizational change. Amer. Sociol. Rev. 49(2):149–164.Crossref, Google Scholar
• Hannan MT, Pólos L, Carroll GR (2007) Logics of Organization Theory: Audiences, Codes, and Ecologies (Princeton University Press, Princeton, NJ).Crossref, Google Scholar
• King G, Nielsen R (2015) Why propensity scores should not be used for matching. Working paper, Harvard University, Boston.Google Scholar
• Kistruck GM, Webb JW, Sutter CJ, Bailey AVG (2015) The double-edged sword of legitimacy in base-of-the-pyramid markets. J. Bus. Venturing 30(3):436–451.Crossref, Google Scholar
• Levi M, Sacks A (2009) Legitimating beliefs: Sources and indicators. Regulation Government 3(4):311–333.Crossref, Google Scholar
• Loayza N (1996) The economics of the informal sector: A simple model and some empirical evidence from Latin America. Carnegie-Rochester Conf. Ser. Public Policy 45(December):129–162.Crossref, Google Scholar
• Loayza NV, Oviedo AM, Servén L (2005) The impact of regulation on growth and informality: Cross-country evidence. Policy Research Working Paper No. WPS 3623, World Bank, Washington, DC.Google Scholar
• Maloney WF (2004) Informality revisited. World Development 32(7): 1159–1178.Crossref, Google Scholar
• Mazumdar D (1983) Segmented labor markets in LDCs. Amer. Econom. Rev. 73(2):254–259.Google Scholar
• McKenzie D, Sakho Y (2010) Does it pay firms to register for taxes? The impact of formality on firm profitability. J. Development Econom. 91(1):15–24.Crossref, Google Scholar
• Meyer JW, Rowan B (1977) Institutionalized organizations: Formal structure as myth and ceremony. Amer. J. Sociol. 83(2):340–363.Crossref, Google Scholar
• Michalopoulos S, Papaioannou E (2014) National institutions and subnational development in Africa. Quart. J. Econom. 129(1):151–213.Crossref, Google Scholar
• Monteiro JCM, Assunção JJ (2012) Coming out of the shadows? Estimating the impact of bureaucracy simplification and tax cut on formality in Brazilian microenterprises. J. Development Econom. 99(1):105–115.Crossref, Google Scholar
• Nunn N, Wantchekon L (2011) The slave trade and the origins of mistrust in Africa. Amer. Econom. Rev. 101(7):3221–3252.Crossref, Google Scholar
• Portes A, Sassen-Koob S (1987) Making it underground: Comparative material on the informal sector in Western market economies. Amer. J. Sociol. 93(1):30–61.Crossref, Google Scholar
• Posner DN (2004) Measuring ethnic fractionalization in Africa. Amer. J. Political Sci. 48(4):849–863.Crossref, Google Scholar
• Rand J, Torm N (2012) The benefits of formalization: Evidence from Vietnamese manufacturing SMEs. World Development 40(5):983–998.Crossref, Google Scholar
• Rauch JE (1991) Modelling the informal sector formally. J. Development Econom. 35(1):33–47.Crossref, Google Scholar
• Raudenbush S, Bryck A (2001) Hierarchical Linear Models: Applications and Data Analysis Methods (Sage Publications, London).Google Scholar
• Rodriguez N (2004) “Workers wanted” employer recruitment of immigrant labor. Work Occupations 31(4):453–473.Crossref, Google Scholar
• Rosenbaum PR, Rubin DB (1983) The central role of the propensity score in observational studies for causal effects. Biometrika 70(1):41–55.Crossref, Google Scholar
• Schneider F (2012) The shadow economy and work in the shadow: What do we (not) know? Discussion Paper 6423, IZA, Bonn, Germany.Google Scholar
• Scott WR (2013) Institutions and Organizations: Ideas, Interests, and Identities, 4th ed. (Sage Publications, Los Angeles).Google Scholar
• Sekhon JS (2011) Multivariate and propensity score matching software with automated balance optimization: The Matching package for R. J. Statist. Software 42(7):1–52.Crossref, Google Scholar
• Sharma S (2014) Benefits of a registration policy for microenterprise performance in India. Small Bus. Econom. 42(1):153–164.Crossref, Google Scholar
• Suchman M (1995) Managing legitimacy: Strategic and institutional approaches. Acad. Management Rev. 20(3):571–611.Crossref, Google Scholar
• Tella RD, Galliani S, Schargrodsky E (2007) The formation of beliefs: Evidence from the allocation of land titles to squatters. Quart. J. Econom. 122(1):209–241.Crossref, Google Scholar
• Uzzi B (1996) The sources and consequences of embeddedness for the economic performance of organizations: The network effect. Amer. Sociol. Rev. 61(4):674–698.Crossref, Google Scholar
• Webb JW, Tihanyi L, Ireland RD, Sirmon DG (2008) You say illegal, I say legitimate: Entrepreneurship in the informal economy. Acad. Management Rev. 34(3):492–510.Crossref, Google Scholar
• Wellalage NH, Locke S (2016) Informality and credit constraints: Evidence from sub-Saharan African MSEs. Appl. Econom. 48(29): 2756–2770.Crossref, Google Scholar
• Yenkey CB (2015) Mobilizing a market: Ethnic segmentation and investor recruitment into the Nairobi Securities Exchange. Admin. Sci. Quart. 60(4):561–595.Crossref, Google Scholar