1.5 Larger Firms Are More Likely to Perceive Benefits from Obtaining a Tax ID

FIGURE 1.5 Larger Firms Are More Likely to Perceive Benefits from Obtaining a Tax ID

Source: data of informal Firms Survey 2010: bangladesh, 2010 (dashboard), microdata library, world bank, washington, dC, https://doi.org/10.48529/sne5-np62.

the distribution of value added per worker in informal factories employing 5–10 persons looks different from the corresponding distribution in formal factories, although there is substantial overlap in the ranges. The difference is starker in considering informal factories with fewer than 5 workers (figure 1.6).22 The mean value added per worker in informal factories employing 5–10 persons is about one-third the corresponding mean in formal factories, while the mean in informal factories employing 1–5 persons is about one-eighth the mean in formal factories. These differences in mean value added per worker may reflect distortions caused by how