GENDER DETERMINANTS OF ECONOMIC INFORMALITY IN IRAQI CITIES: A COMPARATIVE MICROECONOMIC ANALYSIS

This research aims to identify the gender-specific determinants of informality in four Iraqi cities using a comparative microeconomic approach. Using data from the Informal Sector Business Survey in Cities in Iraq, 2021, we construct a multidimensional index of economic informality and analyse its determinants using regressions and Oaxaca-Blinder decomposition. Our results show the existence of two parallel entrepreneurial ecosystems with different informality dynamics. Women have a slightly higher informality index, a turnover 3.6 times lower, and lag significantly in educational attainment. The econometric analysis indicates a differential effectiveness in the determinants of formalisation. Among men, the level of education, business size, and access to banking significantly reduce informality, whereas only access to banking remains significant among women. Microfinance presents a counter-intuitive result with a paradoxical effect: it reduces informality among men but increases it among women. This research contributes to the literature on gendered entrepreneurship in post-conflict economies by demonstrating that the determinants of informality differ by gender.