Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/126305
Authors: 
Boly, Amadou
Year of Publication: 
2015
Series/Report no.: 
WIDER Working Paper 2015/042
Abstract: 
Based on a unique panel dataset consisting of both formal and informal firms surveyed every other year from 2005 to 2013, this paper explores the benefits of formalization to the government and firm employees in Vietnam. We find that formalization benefits the government by increasing the amount and the likelihood of tax payments. Formalization also increases the wage level paid by firms that shift out of the informal sector, as well as the share of wages in value added. Our results are therefore supportive of governments' efforts to reduce the size of the informal sector by promoting formalization.
Subjects: 
informal sector
benefits of formalization
JEL: 
D21
O12
O17
ISBN: 
978-92-9230-927-5
Document Type: 
Working Paper

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