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The Burden of Water Shortages on Informal Firms

The Burden of Water Shortages on Informal Firms <p>ABSTRACT:</p><p>The informal sector in developing economies is a significant source of livelihood for a sizable portion of the population. This study uncovers the effect of poor water infrastructure on the productivity of informal firms. This is achieved using firm-level data for 12 developing economies between 2009 and 2014. The findings indicate that an increase of one standard deviation of the total duration of water shortages in a month can lead to annual average losses of about 14.5% of the monthly sales per worker for the average informal firm in the sample that uses water for business activities. (<i>JEL O17, Q25</i>)</p> http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Land Economics University of Wisconsin Press

The Burden of Water Shortages on Informal Firms

Land Economics , Volume 95 (1) – Jan 11, 2019

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Publisher
University of Wisconsin Press
Copyright
Copyright by the Board of Regents of the University of Wisconsin System.
ISSN
1543-8325

Abstract

<p>ABSTRACT:</p><p>The informal sector in developing economies is a significant source of livelihood for a sizable portion of the population. This study uncovers the effect of poor water infrastructure on the productivity of informal firms. This is achieved using firm-level data for 12 developing economies between 2009 and 2014. The findings indicate that an increase of one standard deviation of the total duration of water shortages in a month can lead to annual average losses of about 14.5% of the monthly sales per worker for the average informal firm in the sample that uses water for business activities. (<i>JEL O17, Q25</i>)</p>

Journal

Land EconomicsUniversity of Wisconsin Press

Published: Jan 11, 2019

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