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Field Before After
Trial Status on_going completed
Last Published June 17, 2016 06:42 AM April 12, 2018 09:11 AM
Study Withdrawn No
Intervention Completion Date February 15, 2015
Data Collection Complete Yes
Was attrition correlated with treatment status? No
Final Sample Size: Total Number of Observations 3,596 business owners at baseline, Two follow-up surveys were conducted in April–June 2015, and in May–June 2016. Attrition rates at first and second follow-up surveys were 11.8% and 15.9 respectively and were not correlated with treatment status
Final Sample Size (or Number of Clusters) by Treatment Arms Group 0 (control): 1,197 business owners. Group 1: 301. Group 2: 899. Group 3: 1,199.
Public Data URL http://microdata.worldbank.org/index.php/catalog/2793/
Is there a restricted access data set available on request? No
Program Files Yes
Program Files URL http://microdata.worldbank.org/index.php/catalog/2793/
Data Collection Completion Date July 01, 2016
Is data available for public use? Yes
Public analysis plan No Yes
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Papers

Field Before After
Paper Abstract Efforts to bring informal firms into the formal sector are often based on a view that this will bring benefits to the firms themselves, or at least benefit governments through increasing the tax base. A randomized experiment based around the introduction of the entreprenant legal status in Benin is used to test these assumptions, along with supplementary efforts to enhance the presumed benefits of formalizing to firms. Few firms register when just given information about the new regime, but our full package of supplementary efforts boosts formalization by 16.3 percentage points. However, this formalization does not bring firms higher sales or profits, and the cost of formalizing these firms exceeds the added taxation they will pay over the next decade. We show how better targeting of these policies towards firms that look more like formal firms to begin with can increase the formalization rate and improve cost-effectiveness.
Paper Citation Benhassine, N., McKenzie, D., Pouliquen, V., and Santini, M. "Does Inducing Informal Firms to Formalize Make Sense? Experimental Evidence from Benin”. Journal of Public Economics, 157, 1-14, January 2018.
Paper URL https://drive.google.com/file/d/1IKlb9HjSzRHBdHbDBWSeLedw6UA7MTV1/view
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