|**Table A8: Mechanisms explaining take up on form**<br>|**alization**<br>(1)<br>Mean [SD]<br>Control|(2)<br>Differe<br>and<br>|(3)<br>nce betw<br>Controlg|(4)<br>een [...]<br>roup|(5)|(6)<br>P‐value<br>G1 and|(7)<br>for diffe<br> <br>G1 and|(8)<br>rence...<br> <br>G2 and|(9)<br>P‐values of<br>joint test<br>|(10)<br> <br>P‐values of<br>joint test|
|---|---|---|---|---|---|---|---|---|---|---|
||Group|Group1|Group2|Group3|N|G2|G3|G3|G1=G2=G3|G1=G2=G3=0|
|**_PANEL A: formal businesses (according to survey):_**|**_two main_**<br>|<br>**_reasons w_**|<br>**_hy regist_**|<br>**_ered:_**|||||||
|Being able to open a bank account/ It is<br>|0.196|‐0.14|0.189|‐0.037|367|0.179|0.621|0.091*|0.203|0.358|
|easier to get a loan|[0.401]|(0.24)|(0.19)|(0.164)|||||||
|To comply with the law/get access to the legal<br>system/not been fined or asked for bribes|0.478<br>[0.505]|‐0.118<br>(0.268)|‐0.273<br>(0.212)|‐0.199<br>(0.183)|367|0.567|0.726|0.615|0.822|0.635|
|It gives access to new markets (public|0.413|‐0.503**|‐0.223|‐0.313*|367|0.239|0.35|0.481|0.492|0.147|
|administration and large companies)|[0.498]|(0.233)|(0.185)|(0.16)|||||||
|Better reputation/social acceptance for the|0.217|0.069|‐0.057|‐0.102|367|0.582|0.388|0.721|0.649|0.783|
|business|[0.417]|(0.227)|(0.18)|(0.156)|||||||
|It gives access to government or NGO|0.043|0.545**|0.31|0.415**|367|0.346|0.543|0.435|0.601|0.079*|
|program (including the CGA)|[0.206]|(0.246)|(0.195)|(0.168)|||||||
|_Including:_|||||||||||
|It gives access to CGA benefits|0|0.328|0.19|0.326*|367|0.568|0.994|0.3|0.58|0.223|
||[0]|(0.239)|(0.189)|(0.164)|||||||
|Other|0.152<br>[0.363]|0.331** <br>(0.161)|0.244*<br>(0.127)|0.235** <br>(0.11)|367|0.595|0.492|0.913|0.784|0.131|
|**_PANEL B: informal businesses: two main reasons_**|**_why not r_**|**_egistered:_**|||||||||
|Answered that she is going to formalize soon|0.176<br>[0.381]|0.003<br>(0.039)|0.003<br>(0.025)|0.007<br>(0.023)|2,217|0.998|0.919|0.876|0.985|0.991|
|High registration costs / registration process<br>complicate or time consuming|0.309<br>[0.462]|0.065<br>(0.048)|‐0.005<br>(0.031)|0.014<br>(0.028)|2,217|0.196|0.293|0.558|0.433|0.571|
|Doesn't see any benefits of formalization / the|0.319|‐0.104**|‐0.016|0.016|2,217|0.106|0.014**|0.321|0.039**|0.079*|
|business is too small|[0.466]|(0.048)|(0.031)|(0.028)|||||||
|It increases the amount of taxes to be paid/|0.284|‐0.052|‐0.004|‐0.027|2,217|0.352|0.585|0.461|0.611|0.599|
|risk of tax inspection|[0.451]|(0.046)|(0.03)|(0.027)|||||||
|Doesn't have enough information on|0.089|0.015|‐0.018|‐0.047***|2,217|0.295|0.03**|0.136|0.048**|0.02**|
|formalization|[0.285]|(0.028)|(0.018)|(0.017)|||||||
|Doesn't have a legal ID|0.006<br>[0.079]|0.021*<br>(0.012)|0.000<br>(0.008)|0.014* <br>(0.007)|2,217|0.121|0.55|0.09*|0.163|0.104|
|More paperwork / it requires to do accounting|0.014<br>[0.116]|0.021<br>(0.014)|0.015<br>(0.009)|0.008<br>(0.009)|2,217|0.745|0.41|0.49|0.604|0.244|
|More corruption|0.005|‐0.011|‐0.002|‐0.002|2,217|0.257|0.187|0.937|0.416|0.459|
||[0.07]|(0.007)|(0.004)|(0.004)|||||||
|Husband forbid it|0|0.001|0.003|0.003|2,217|0.711|0.749|0.889|0.933|0.667|
||[0]|(0.004)|(0.003)|(0.003)|||||||
|Other|0.015|0.033**|‐0.003|0.014|2,217|0.035**|0.217|0.095*|0.08*|0.077*|
|Notes: Data from second follow‐up survey (June 20<br>standard errors (in parentheses) from an OLS regre<br>dummies (dummies for each triplet). ***, **, * ind|[0.121]<br>16). Colum<br>ssion of t<br>icate stati|(0.015)<br>n 1: Stand<br>he firm o<br>stical sign|(0.01)<br>ard devi<br>wner/firm<br>ificance|(0.009)<br>ations pre<br>characte<br>at 1, 5 an|sente<br>ristic o<br>d 10%.|d in bra<br>n treat<br>|ckets. Col<br>ment dum|umns 2‐<br>mies, co|4: coefficien<br>ntrolling for|ts and<br>strata|

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