Formalization of Female Micro-Entrepreneurs in Brazil

38 Pages Posted: 4 Jan 2022

See all articles by Paula Pereda

Paula Pereda

University of São Paulo (USP)

Renata Narita

University of Sao Paulo

Fabiana Rocha

University of São Paulo (USP) - Department of Economics

M.D. M. Diaz

University of São Paulo (USP) - Department of Economics

Eloiza Almeida

Federal University of São Paulo (UNIFESP) - Group on Family and Gender Economics; Centro Brasileiro de analise e Planejamento CEBRAP

Bruna Pugialli da Silva Borges

affiliation not provided to SSRN

Liz Matsunaga

affiliation not provided to SSRN

Abstract

This paper uses rich individual-level data to understand how a nationwide formalization program (the MEI program) impacts men and women differently. The MEI program began in 2009 to reduce formalization costs for micro-entrepreneurs. The identification strategy exploits the staggered rollout of MEI implementation across states and the exogeneity of the eligible industries to identify the impacts on the formalization of micro-enterprises. Our findings show that women entrepreneurs drove the formalization of pre-existing micro-businesses and that the access to social protection by the program might be one of the reasons women formalize more. We find no evidence that the MEI program is a way out of unemployment or inactivity for women or that employers changed their employees’ contracts due to the program.

Keywords: Labor markets, formalization, tax reforms, gender.

Suggested Citation

Pereda, Paula and Narita, Renata and Rocha, Fabiana and Diaz, M. Dolores M. and Regina Ferreira de Almeida, Eloiza and Borges, Bruna Pugialli da Silva and Matsunaga, Liz, Formalization of Female Micro-Entrepreneurs in Brazil. Available at SSRN: https://ssrn.com/abstract=4000220 or http://dx.doi.org/10.2139/ssrn.4000220

Paula Pereda (Contact Author)

University of São Paulo (USP) ( email )

Renata Narita

University of Sao Paulo ( email )

Av. Prof Luciano Gualberto 908
Sao Paulo, Sao Paulo 05508010
Brazil

Fabiana Rocha

University of São Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto 908
Sao Paulo SP, 05508-900
Brazil
+55 11 818-5886 (Phone)
+55 11 818-6013 (Fax)

M. Dolores M. Diaz

University of São Paulo (USP) - Department of Economics ( email )

Av. Prof. Luciano Gualberto, 908
Dept. Economia - Cidade Universitária
Sao Paulo SP, 05508-900
Brazil

Eloiza Regina Ferreira de Almeida

Federal University of São Paulo (UNIFESP) - Group on Family and Gender Economics ( email )

Rua Sena Madureira, 1500 - 5º andar
Vila Clementino
São Paulo, Sao Paulo 04021001
Brazil

Centro Brasileiro de analise e Planejamento CEBRAP ( email )

Bruna Pugialli da Silva Borges

affiliation not provided to SSRN ( email )

No Address Available

Liz Matsunaga

affiliation not provided to SSRN ( email )

No Address Available

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