Benefits of a Registration Policy for Microenterprise Performance in India
Posted: 11 Jan 2012 Last revised: 24 Jan 2015
This paper evaluates the effects of a voluntary registration policy with government authorities on financial performance of urban microenterprises in the Indian manufacturing sector. Using data from the 2006 World Bank survey of Indian microenterprises and applying the semi-parametric propensity score matching technique, we find that being registered leads to significant gains in sales per employee and value added per employee. Large gains are also noted for male-owned firms, those operating with or without paid labor and those operating outside of the owner’s home.
Keywords: microenterprises, registration, firm performance, India
JEL Classification: L25, L26, 017
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