Abstract

RODRIGUEZ MEDINA, Oscar; ALVARADO LAGUNAS, Elías  and  SANCHEZ SILVA, Mario. Informality and nano-businesses in perimetropolitan areas of Mexico City. Prob. Des [online]. 2023, vol.54, n.212, pp.55-77.  Epub Aug 14, 2023. ISSN 0301-7036.  https://doi.org/10.22201/iiec.20078951e.2023.212.69898.

This article aims to study the variables that influence the preference for nano-businesses operating under a formal or informal status in the perimetropolitan area of Milpa Alta, Mexico City. For this purpose, a controlled experiment was carried out on 122 individuals, in which the advantages of a formal business status were highlighted in order to obtain a transition matrix and three Logit models. The results indicate that 27% of entrepreneurs are willing to transition to a formal business operation. Furthermore, as the initial investment increases, the preference for informality decreases, while the preference for formality increases when the individual has completed a bachelor's or engineering degree. Finally, the lower the initial investment, the more complex the informal-formal transition becomes.

Keywords : perimetropolitan; Logit model; informal business status; transition to a formal business.

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