A logit analysis of norm compliance by micro-enterprises in Chile

Sang Lee () and Luis Gutiérrez ()
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Sang Lee: Southeastern Louisiana University
Luis Gutiérrez: Universidad del Rosario

Economics Bulletin, 2024, vol. 44, issue 3, 1196 - 1213

Abstract: Using a survey data from more than 6,000 micro-enterprises in Chile, this study attempts to identify potential determinants of formality and micro-entrepreneurs' motivations for the norm compliance. Our logit estimation results suggest that the motivations of micro-entrepreneurs for norm compliance is attributable not only to their individual and entrepreneurial characteristics such as education and managerial capital but also to other imputable business and financial characteristics of micro-enterprises like asset ownership and firm size. Our empirical findings also confirm that the sample Chilean micro-entrepreneurs' motivations to get formal appear to be largely in line with the exit-driven view.

Keywords: entrepreneurship; informal economy; ·micro-enterprises; developing economy; Chile (search for similar items in EconPapers)
JEL-codes: L2 O1 (search for similar items in EconPapers)
Date: 2024-09-30
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