Most of the entrepreneurs in the informal sector have received education. Respectively, 59 percent and 14 percent have attained secondary and postsecondary education. Only 7 percent have no formal education, while 16 percent have completed primary education (table 1).

There is a strong correlation between educational attainment and poverty status because informal entrepreneurs with higher consumption levels tend to be more educated. Approximately 40 percent of informal entrepreneurs who possess postsecondary education rank among the informal entrepreneurs with the highest consumption (top quintile). Only 12 percent of the informal entrepreneurs who have no formal education have reached such consumption. Meanwhile, approximately 6 percent of entrepreneurs with postsecondary education exhibit consumption that ranks in the bottom consumption quintile, where approximately 24 percent of the entrepreneurs with no formal education are found. Educational attainment correlates positively with consumption because the relatively more educated entrepreneurs are more well off (see table 1).

**Table 1. Consumption Distribution across Informal Firms**

||All|Bot. decile|1st qt.|2nd qt.|3rd qt.|4th qt.|5th qt.|Top decile|
|---|---|---|---|---|---|---|---|---|
|**Owner characteristics**|||||||||
|Male|0.364|0.427|0.394|0.387|0.325|0.327|0.391|0.376|
|Age owner|0.378|0.385|0.383|0.375|0.373|0.380|0.382|0.387|
|No diploma|0.077|0.083|0.240|0.273|0.204|0.166|0.118|0.080|
|Primary completed|0.165|0.107|0.224|0.293|0.208|0.140|0.135|0.060|
|Some secondary|0.588|0.055|0.137|0.227|0.212|0.214|0.210|0.095|
|Post secondary|0.143|0.024|0.060|0.130|0.165|0.261|0.385|0.221|
|Other post primary|0.026|0.023|0.129|0.218|0.190|0.259|0.205|0.137|
|Can read|0.888|0.818|0.809|0.856|0.865|0.927|0.961|0.964|
|Can write|0.878|0.806|0.798|0.858|0.857|0.908|0.947|0.940|
|Poor|0.611|0.099|0.243|0.376|0.333|0.048|0|0|
|**Firm characteristics**|||||||||
|Annual value added|4,304,138|1,916,232|1,623,570|1,457,256|13,900,000|2,124,842|2,408,441|2,956,779|
|Physical capital|145,255.6|54,340.23|75,616.27|95,276.93|131,650|138,510.2|279,270.4|327,061.7|
|Gross operating profit|125,703.4|115,867.2|106,092.7|99,184.71|129,174.5|130,322.6|163,759|181,338.4|
|Workers, total|1.3|1.41|1.31|1.24|1.27|1.3|1.37|1.44|
|Paid workers|0.14|0.2|0.11|0.08|0.13|0.17|0.18|0.25|
|Wage worker, male|0.23|0.186|0.189|0.166|0.366|0.182|0.271|0.328|
|Wage worker, female|0.13|0.082|0.11|0.119|0.157|0.146|0.198|0.286|
|Water|0.0845|0.0202|0.0393|0.1867|0.1857|0.2326|0.3557|0.2343|
|Electricity|0.1201|0.0296|0.0396|0.1291|0.1844|0.2192|0.4277|0.2358|
|Land line, phone|0.1534|0.0395|0.0987|0.1474|0.2252|0.2114|0.3174|0.1832|
|Fixed location|0.5797|0.0508|0.1317|0.2349|0.2039|0.2167|0.2128|0.1041|
|Mobile location|0.4051|0.0729|0.1722|0.2244|0.2012|0.1902|0.212|0.1087|
|Other location|0.0152|0.129|0.1605|0.2019|0.2474|0.1599|0.2303|0.062|
|Observations|4,424|440|1,002|1,007|864|840|711|346|

_Source:_ Calculations based on 1-2-3 survey data _Note:_ This table considers 4,424 informal firms as there are 80 missing points in our variable per equivalent adult consumption. Means of characteristics of interest are presented in the table. Means are weighted using sampling weights.

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