Informality and technical efficiency in Morocco: lessons from Stochastic Frontier Analysis

Abstract

This paper aims to study the behaviour of formality of 390 microenterprises (ME) and its impact, based on data from a survey that was conducted in the city of Casablanca. We explain, on one hand, the choice of the level of formality using an Ordered Probit model. On the other hand, we analyse the effect of registration and other factors on productivity, using the Stochastic Frontier Approach which considers the risk of self-selection.