TY  - GEN
AU  - Caro, Lorena
AU  - Galindo, Arturo
AU  - Meléndez Arjona, Marcela
TI  - Credit, Labor Informality and Firm Performance in Colombia
PY  - 2012
Y1  - 2012/06/06
DO  - 10.18235/0011386
AB  - This paper explores the links between labor formality, access to credit and firm performance in Colombia using Annual Manufacturing Survey data for the period 2000-2009.  A significant though small relationship is found between access to credit and informality.  The results suggest that a 10 percent increase in the ratio of credit to sectoral output increases labor formality between 0. 76 and 1. 14 percentage points.  This effect vanishes as a firm's financial constraint increases.  The paper also reports a strong correlation between labor formality and firm performance measured as output and employment growth.  A one percentage point increase in labor formality is associated with an 8. 5 percent increase in output and an 11 percent increase in employment growth.
UR  - https://doi.org/10.18235/0011386
ER  -