Precarious work in the formal sector – Evidence from Ghana

Abstract

Although the literature on precarious work is evolving, the empirical evidence so far has been on developed countries. For developing countries, particularly in Africa, the relatively scanty evidence has mostly focused on the informal sector. A noticeable gap in the literature is the missing evidence in the formal sector. This study, as a result, investigates the incidence of precarious employment from the perspective of a developing country in a ‘seemingly’ protected formal sector. Relying on data from the Ghana Living Standards Survey 7 (2016/17) and the Probit estimator, we find evidence of precarious employment being pervasive in the formal sector of the country. Particularly, we find factors such as education, age, being a household head, migration and the occupational status of parents to decrease the likelihood of precarious employment. When comparing male and female workers as well as younger and older cohorts, the results remain unchanged except for the differential probability values. To improve the quality of jobs, we recommend that policymakers need to channel attention toward the enforcement of labour laws to reduce the incidence of precarious work that denies workers opportunities for personal development, safety and financial security in old age. Also, policies aimed at improving access and quality of education above the primary level should be encouraged as we find that post-primary levels of education reduce the incidence of precarious work in the country.