Transferências de renda e emprego formal: o Programa Bolsa Família do Brasil
Abstract This paper examines the heterogeneous relationship between Brazil's Bolsa Família Program (BFP) and formal employment. Using municipal-level data from 2014 to 2020 and two-way fixed effects panel data models, we analyze how increases in transfers are associated with changes in formal employment across gender, race, and economic sectors. We find that increases in the number of BFP beneficiaries correlate with an overall decline in formal employment for both men and women, with a more pronounced influence on Black workers. Conversely, increasing the value of BFP transfers positively influences formal employment, especially among Black workers. We also find that these associations are sector-dependent, leading to a reduction in employment in the primary sector and an increase in the service sector. These results suggest that increasing BFP transfer values, instead of expanding the number of recipient families, could have more positive effects on formal employment, particularly Black workers.
- Preprint Article
- 10.17605/osf.io/yfdwh
- Jun 8, 2018
Brazil experienced population ageing and improvement in educational attainment between 1980–2010. Proportion of workers in the formal economic sector increased between 2000–2010. Earnings decreased from 1980 to 1991 and increased in 2000. However, earnings in the formal economic sector decreased again in 2010. We estimate associations of individual- and area-level variables with individual earnings of male workers living in urban areas in Brazil. Ordinary least squares regressions estimate variations on earnings of male workers, using the 1980–2010 Demographic Censuses. Individual independent variables include age, education, economic sector, race/color, marital status, religion, and region of residence. Contextual independent variables consider demographic, educational, and economic sector compositions by areas of residence. Considering individual-level variables, older and better educated workers have higher earnings. Workers in the formal economic sector have higher earnings than in the informal sector. For area-level variables, higher proportions of people working in the formal economic sector have positive associations with earnings. Proportions of people in age-education groups have negative associations with earnings mostly among older workers. For models by economic sector, proportions in age-education groups have higher positive coefficients in the informal sector, compared to the formal sector. Transitions in demographic, educational, and economic sector compositions are correlated with earnings. These effects generate greater economic inequality in the informal sector than in the formal sector. Our main contribution is the estimation of models about associations of individual earnings with individual and area-level variables, which can be replicated for other countries.
- Research Article
218
- 10.1111/j.1468-0297.2009.02268.x
- Jun 11, 2009
- The Economic Journal
In this article, we build an equilibrium search and matching model of an economy with an informal sector. Our model extends Mortensen and Pissarides (1994) by allowing for ex ante worker heterogeneity with respect to formal-sector productivity. We use the model to analyse the effects of labour market policy on informal-sector and formal-sector output, on the division of the workforce into unemployment, informal-sector employment and formal-sector employment, and on wages. Finally, we examine the distributional implications of labour market policy; specifically, we analyse how labour market policy affects the distributions of wages and productivities across formal-sector matches. In this article we construct a search and matching model that we use to analyse the effects of labour market policies in an economy with a significant informal sector. What we mean by an informal sector is a sector that is unregulated and hence not directly affected by labour market policies such as severance or payroll taxes. We find that labour market policies that apply only to the formal sector nonetheless affect the size and the composition of employment in the informal sector. This is important since there is substantial economic activity in the informal sector in many economies, particularly in developing countries. Estimates for some Latin American countries put the informal sector at more than 50% of the urban work force.1 The informal sector is also important in many transition countries as well as in some developed economies.2 Although much of the literature treats the informal sector as a disadvantaged sector in a segmented labour market framework, this interpretation is not consistent with recent empirical evidence from Latin America. Under a segmented or dual labour market interpretation, one would expect jobs to be rationed in the primary sector and workers to be in the secondary or informal sector involuntarily and to be queuing for formal-sector jobs. Maloney (2004) presents evidence for several Latin American countries that challenges this view and instead interprets the informal sector as an unregulated micro-entrepreneurial sector. Similarly, using data from the Argentinian household survey, Pratap and Quintin (2006) reject the notion that labour markets are segmented in the greater Buenos Aires area, concluding that there is no evidence of a formal-sector wage premium after controlling for individual and establishment * We thank Mauricio Santamaria for stimulating conversations that inspired our interest in this topic. We also thank Bob Hussey and Fabien Postel-Vinay as well as our editor, Steve Pischke, and two anonymous
- Research Article
- 10.3126/pragya.v8i01.42423
- Dec 31, 2021
- Patan Pragya
Economic sectors are broadly categorized as formal and informal sectors. Informal sector is also known as informal economy and grey economy. Informal sectors are beyond the monitoring system and tax system of government. To explore social and economic effects ofcovid-19 on informal sector’s women, this study is conducted as the title of effects of covid-19 pandemic on informal sector’s women in damak, Jhapa. It is based on the theoretical assumption of feminism. It employs exploratory research design and is based on both primary and secondary sources of data. The study revealed that there are very bad effects ofcovid-19 pandemic on women’s livelihood, who are involved in informal economic sectors especially in street vending. The pandemic has indeed affected by decreasing the income of the women. The working condition in regards to hours of work per day and days of work per week has decreased significantly affecting the income. Additional problems such as less customer flow, low income, increased municipality eviction and lack of supplies of goods increased and led to indebtedness, and no saving at all during the pandemic. It suggests that concerned authorities should make effective institutional frameworks to empower women involved in informal sector of economy.
- Single Book
36
- 10.1596/28120
- Aug 8, 2008
No AccessOther Social Protection Study10 Oct 2017Skills Development in the Informal Sector of Sub-Saharan AfricaAuthors/Editors: Arvil V. AdamsArvil V. Adamshttps://doi.org/10.1596/28120SectionsAboutPDF (0.8 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract: Since first recognized in the early 1970s, the informal sector of Sub?Saharan Africa has become a growing source of employment for large numbers of youths, but also older workers pursuing entrepreneurial goals and others adjusting to structural changes in the region's employment. Initially viewed as a safety net for those unable to find employment in the modern sector, the image of the informal sector has begun to change with time and the education of those entering it. More workers have begun to view it, not as a temporary stop while searching for employment in the formal wage economy, but as a preferred destination offering opportunities to those wanting to become entrepreneurs. The chapter examines recent research covering measurement of employment in the informal sector, impediments to investing in skills within the sector, and policies and programs to expand this investment. It extends earlier work on this topic done under auspices of the World Bank. The purpose is to examine what is currently known about these issues, identify gaps in knowledge, and offer a strategy for expanding skills development in the informal sector. Recent research, for example, like that mentioned above in Ghana showing the changing character of employment in the informal sector and the prospect of growing returns to skills casts a new light on employment in this sector and merits further inquiry into the robustness of these findings in other countries to deepen our understanding of how skills influence the welfare of those who create their own employment in the informal sector and how the investment in skills can be expanded. Next book FiguresreferencesRecommendeddetails View Published: August 2008 Copyright & Permissions Related Regions Africa Related Topics Education Social Protections and Labor KeywordsADULT EDUCATIONAPPRENTICESHIPSEMPLOYMENTHOUSEHOLD SURVEYSHUMAN RESOURCESINFORMAL SECTORINSERVICE TRAININGJOB CREATIONLITERACYLOWER SECONDARY EDUCATIONNONGOVERNMENTAL ORGANIZATIONSOCCUPATIONSOLDER WORKERSPRIMARY EDUCATIONPRIVATE SECTORQUALITY ASSURANCESCHOOLSSECONDARY EDUCATIONSKILLED WORKERSSMALL BUSINESSESTERTIARY EDUCATIONWORKING POORYOUTH PDF DownloadLoading ...
- Research Article
33
- 10.1057/s41294-020-00137-w
- Oct 21, 2020
- Comparative Economic Studies
One of the defining features of China’s economy over the two decades between 1995 and 2015 was the persistent rise of wages for workers and professionals in nearly every segment of the economy—with wage rates for labor-intensive jobs in manufacturing, construction, and the informal service sector rising the fastest. Recently, however, the economic environment in China has begun to change, including changes in both employment and wages. We identify recent employment/wage trends throughout China’s economy and postulate the sources of these trends as well as possible future consequences if they continue. We use official, nationally aggregated data to examine employment and wages in multiple sectors and industries. Our findings indicate that China may have entered a new phase of economic development in the mid-2010s. According to the data, in recent years, wage growth has begun to polarize: Rising for professionals employed in formal skill-intensive industries; and falling for workers in the informal labor-intensive service sector. We attribute this increase in skill-intensive wages to an increase in demand for skill-intensive employment, due to the emergence of a large middle class in China, for whom the demand for high technology, finance, banking, health, and higher education industries is increasing while, at least in the recent short term, the supply of experienced, high-skilled professionals has not kept up. The employment/wage trend in the informal (low-wage) service sector, however, is following a different pattern. While there is a rising demand for services in China’s economy, the growth, due to a number of factors (e.g., large shares of GDP targeted by policymakers to investment; high rates of savings by consumers), is relatively slow. In contrast, due to a number of economic forces, including globalization and automation, the supply of labor into the service sector of the informal economy is being fueled by the flow of labor out of manufacturing and construction (two industries that that have experienced employment declines since 2013). These supply and demand trends, in turn, are leading to the fall in the growth rate of wages in the informal service sector. We conclude by discussing the possible longer-term consequences of these emerging polarization trends based on an examination of recent experience with wage polarization occurring in both middle- and high-income countries, as well as its consequences. We also present policy recommendations for greater investment in education and human capital, as well as for the development of a more comprehensive set of social safety nets for different segments of China’s population.
- Dissertation
- 10.18174/507882
- Mar 11, 2020
Informal economies have been growing, in particular, in the developing world. Nearly two-thirds of the world’s employed population earn their livelihoods in the informal economies. The informal economy entrepreneurs provide essential products and services, enhance supply chains, generate employment, and contribute substantially to the economic and social life of communities worldwide. However, the views of informal entrepreneurs have often been marginalized and the issues affecting them are frequently left unobserved in academic or professional debates. Little is known about the informal tourism economy’s characteristics in the existing literatures and so far, no study has estimated the size of the informal tourism economy. Yet, the informal tourism entrepreneurs enter into tourism markets with important skills, qualities, and attributes - in the forms of economic, social, cultural, and dream capitals - which could be utilized more successfully to enable them to contribute to broader economic development initiatives. This PhD-thesis, based on in-depth empirical research, investigates how informal tourism entrepreneurs co-construct their informal tourism sector through their practices. Using an interdisciplinary approach (e.g. mainly sociological and anthropological perspective but also an economic one), this PhD-thesis sees the informal sector as a social system in which people continuously shape and reshape their livelihoods, individually and collectively. More specifically, this PhD-thesis investigates how evolving conditions in the tourism field and beyond simultaneously affect the capital deployment and habitus adaptations of informal tourism entrepreneurs and uses the macroeconomic indicators to estimate the size of the informal tourism economy and its relations to the general economy. Accordingly, this PhD-thesis consists of three chapters that depart from an anthropological/sociological perspective, but also includes one chapter that departs from a fundamentally economic perspective. In seeking answers to the research questions, this PhD uses Bourdieu’s theory of practice and creates understanding by Contrasting the networks of social relations in the field, where informal tourism entrepreneurs take positions or struggle over capital, stakes, and access, Comparing the different forms of capital owned by informal tourism entrepreneurs, and by Compiling insights from analyses of informal tourism entrepreneurs’ habitus. The methodologies adopted in these three chapters are narrative inquiry, discursive thematic analysis and ethnographic field research. In addition, the PhD-thesis consists of a fourth economic chapter and aims to incorporate an economic perspective within a social constructivist approach. Here the attention is paid to macroeconomic indicators and the chapter aims to estimate the size of the informal tourism economy and to advance understanding by evaluating the dynamic interplay between the informal tourism economy and the labour market. The four chapters together thus seek to offer a comprehensive and rigorous analysis of the practice and size of the informal tourism economy. Thailand is chosen as a context since it is the second largest economy in Southeast Asia, yet with the highest ratio of revenue arising out of the informal economic sector. The primary data has been collected at four different tourist destinations, namely Chiang Mai, which is the second largest city of country, and the top three most popular tourist islands - Koh Samui, Koh Phangan, and Koh Tao - located in the south of Thailand. This PhD-thesis contributes to academics and practitioners in several ways. First, this PhD-thesis offers interventions and hands-on actions to policy makers and destination governors rather than thinking the whole phenomenon holistically and/or analysing it as a set of significations and discourses. Second, it demythologizes the common sense view that informal entrepreneurs are marginalized, traditional, underdeveloped and backward entities, and shows empirically that informal tourism entrepreneurs have important and relevant capitals (e.g. skills, qualities, attributes, and networks), and contribute substantially to the socio-economic world of destinations in achieving their broader sustainable development goals. Third, this PhD-thesis addresses the evolution of informal tourism entrepreneurship from their role of poverty alleviation and survival strategy for unemployment in developing countries to their existence as trusted and socio-economically essential entities of the social system. It calls for inclusive frameworks and hybrid solutions in which informal entrepreneurs are recognised for their benefits to society in academic and professional debates. To this end, this PhD-thesis offers a more complete understanding of the practice of the informal tourism entrepreneurs and the informal tourism economy and its entrepreneurs’ contribution to national economies.
- Research Article
1
- 10.51239/nrjss.v0i0.125
- Dec 30, 2019
- NICE Research Journal
In developing countries, despite the fact that a larger part of GDP is generated by the formal sector, most people earn and spend their lives in the informal sector. We identify the determinants of formal and informal sectors’ employment in the urban areas of district Lahore, by conducting a household survey in 2015. The multinomial logit model is used to analyze the data obtained from a sample of 309 workers. Our results indicate that personal, socio-economic and household factors are essential for regulating employment in both sectors. Furthermore, our findings provide evidence that employment in the sectors in question is significantly determined by the level of higher education, age, working experience of individuals, marital status, sound educational background of the parents of workers, the number of dependents and the presence of assets. The study also provides the policy framework to channelize employment opportunities in the urban labor market and advises the government to enhance the growth potential of workers by expediting the provision of higher education and other skill acquisition initiatives.
- Book Chapter
5
- 10.1007/978-3-030-37599-7_44
- Jan 1, 2019
We investigate a modification of the classical fixed effects panel data model (a linear regression model able to represent unobserved heterogeneity in the data), in which one has the additional possibility of controlling the conditional variance of the output given the input, by varying the cost associated with the supervision of each training example. Assuming an upper bound on the total supervision cost, we analyze and optimize the trade-off between the sample size and the precision of supervision (the reciprocal of the conditional variance of the output), by formulating and solving a suitable optimization problem, based on a large-sample approximation of the output of the classical algorithm used to estimate the parameters of the fixed effects panel data model. Considering a specific functional form for that precision, we prove that, depending on the “returns to scale” of the precision with respect to the supervision cost per example, in some cases “many but bad” examples provide a smaller generalization error than “few but good” ones, whereas in other cases the opposite occurs. The results extend to the fixed effects panel data model the ones we obtained in recent works for a simpler linear regression model. We conclude discussing possible applications of our results, and extensions of the proposed optimization framework to other panel data models.
- Research Article
10
- 10.3390/economies11110266
- Oct 26, 2023
- Economies
Over the last three decades, Vietnam has undergone economic reforms and achieved rapid economic growth. However, the country is still facing numerous challenges linked to a relatively high share of employment in an informal economic sector, which could prevent Vietnam from escaping from the middle-income trap and becoming a high-income country. This research explores the effect of foreign direct investment (FDI) on job creation in the formal economic sector of Vietnam. A subnational dataset of 63 cities/provinces from 2006 to 2020 was analyzed using an instrumental variable two-stage least-squares fixed-effect model. The results show that FDI is an employment growth-enhancing factor in the formal economic sector. Specifically, FDI enterprises are found to be more capable than domestic enterprises in creating employment, and there is a positive employment spillover from the foreign to the domestic sector, although the magnitude of the effect remains small. Apart from FDI, firm agglomeration, capital resource productivity, and government support for sector development spur employment growth. Labor quality, profitability and foreign industrial agglomeration are identified to be determinants of FDI. Furthermore, the impact mechanism of FDI on the formal sector’s employment is further discussed using mindspongeconomics, the SM3D knowledge management system, and the culture tower.
- Research Article
32
- 10.1086/713020
- Feb 17, 2021
- Journal of the Society for Social Work and Research
There and Back Again: A Commentary on Social Welfare Policy in the Wake of 2020
- Research Article
- 10.47872/laer.v31.24
- Jan 18, 2022
- Latin American Economic Review
The paper aims to assess the wage differential that would induce workers to switch between informal and formal sectors, analysing the informal labour market in the Colombian Caribbean region. Relying on the theory of equalising differences, we uncover which workers perceive the highest utility from holding a formal job. Our research sheds light on how workers derive utility from formal and informal job sectors' benefits and to which extent informal workers are willing to accept a lower (or higher) wage to get a job in the formal sector. We also analyse the factors increasing the likelihood to seek employment in the formal sector. Results suggest that, on average, informal workers in the study region are willing to switch to a formal job only if they are offered a salary higher than their current income but are also willing to accept a salary slightly lower than the legal minimum wage in the formal sector. Finally, perceptions of benefits from formal and informal jobs vary with the socio-economic characteristics of individuals, especially by education level and previous work experience.
- Research Article
- 10.3126/ejdi.v28i1-2.33193
- Dec 4, 2019
- Economic Journal of Development Issues
Labor market returns depend on the level of education as well as experience of the labors. Though education is argued to be the key determinant of wage rate, other factors such as the sector of employment, gender of the employee, marital status and work industry also matter. This paper investigates the returns from years of schooling and experience by examining the wage structure in formal, informal and agriculture sectors of Nepal. The Mincerion wage equation and quantile regression technique has been used to analyze such impact by utilizing the recent labor force survey data of Nepal. Our results show that wage returns are positively associated with schooling in all the three sectors. However, return to experience has negative association in case of agriculture sector. Furthermore, return to schooling has higher impact at higher quantile along with the distribution of wages in formal sector and informal sector. The maximum effect of education is 4 percent at 0.90 quantile in formal sector. An additional year of experience has high impact at lower-wage group in case of informal and formal sector. The effect varies from 9.2 percent at 0.1 quantile and 4.9 percent at 0.9 quantile in formal sector. The experience effect is higher at median (4.06 percent) in case of informal sector.
- Research Article
- 10.14203/jki.v13i2.342
- Feb 12, 2019
Local elections (pilkada) have become a political phenomenon which presumably may impact other sectors, including the employment and labour sector. This sector is one of the attractive commodities to be sold by the head of government, thus vulnerable to the interests of certain parties. Economic rationale is all too often used by the electoral candidate through promises to provide employment, and making it easier to attract sympathy from the unemployed. This paper presents the results of the study about the impact of the election on the employment transition. The analysed impact is the change in the employment sector one year before the election (t-1) until the year in which election was hold (t). This study analyzes the 2010 population census data with a multinomial logit (MNL) analysis approach. Empirical results show that district elections have a positive and significant effect on the transition from unemployment to working in the informal and formal sectors. While individuals who have previously worked in the formal sector tend to survive in the sector. On the other hand, it turns out that the district elections did not have a significant impact on individuals who previously worked in the informal sector
- Research Article
6
- 10.26493/1854-4231.14.5-17
- Mar 3, 2019
- Management
Digital transformation is the driving force of the present and near future. Scientific and technological advances make digital transformation change not only societies and businesses, but also entire national economies. This digital transformation is also referred to as the so-called fourth industrial revolution (Industry 4.0), which is in terms of technological progress directly follows previous industrial revolutions. All previous industrial revolutions influenced the labour market and changed the nature of the professions. That’s why the primary goal of this paper is to analyse the impact of Industry 4.0 on the labour market. In order to achieve this goal we have analysed the work of several authors and studies and enhanced it with the analysis of our own. Our own research was dedicated to answering the research question: Does the fourth industrial revolution have the same impact on employment in the same sectors of the national economies of the selected countries? In order to answer this question we used the correlation analysis to measure correlation coefficients between risk of job automation and employment in sectors of agriculture, services and industry in selected OECD countries. The main conclusions drawn from this paper are that risk of job automation in countries increases when their employment in sectors of agriculture and industry is relatively high and on the other hand this risk decreases when employment in sector of services is high.
- Research Article
10
- 10.1177/003335490512000606
- Nov 1, 2005
- Public Health Reports®
Sherry L. Baron, MDa In the mid-1990s, I was on a temporary assignment through the Pan American Health Organization to Mexico City. During my assignment, I oversaw a collaborative training program in occupational and environmental epidemiology between the Pan American Health Organization and the Mexican Secretary of Health. Through this training pro gram, one student, Dr. Zoila L?pez Sibaja, developed a pilot project to better character ize work-related injuries to children employed in the informal sector. The growth of the informal employment sector throughout the developing world has the potential to place workers and especially child labor at particularly high risk for work-related injuries. According to the International Labour Organization, in Latin America during the 1990s, the urban informal sector was the primary generator of new jobs.1 The informal sector is defined by the International Labour Organization as either self-employed workers and their unpaid family members, or workers (either paid or unpaid) in very small businesses (fewer than 5-10 workers), apprentices, contract labor, home workers, and paid domestic workers. The employment conditions of informal workers are based mostly on casual employment relations rather than contractual ar rangements with formal labor protections, such as protection under child labor laws. A small but important part of the informal employment sector is street children.1 Street children is a term used for child laborers who work and live in the street and may or may not maintain contact with their families. Although street children face many health risks ranging from violence to drug use, an important priority is protecting them from working conditions that may damage their health and well-being, especially work-related injuries.2 In Mexico, the Federal Labor Law clearly prohibits child labor under age 14; from age 14-16, children may work if they remain in school. However, in 1994 the Mexican Statistics Institute (INEGI) reported that 34.3% of children younger than age 15 were working.3 A joint survey by UNICEF and the government of Mexico City estimated that during the same time period there were over 11,000 street children in the central area of Mexico City, of whom about 1,000 both lived and worked in the streets.4 To address the general public health problem of injuries, in 1994, Mexico established the System of Epidemiological Surveillance of Externally Causes Injuries (SVELECE), with the primary objective to count, analyze, and then prevent injuries. According to SVELECE, 13% of the injuries that occurred in 1996 happened in the 5-17-year-old group, and, of the injuries occurring in that age group, 5% happened in the workplace.5 Since this data may undercount injuries in children employed in the informal sector, my student's pilot study was designed to estimate the proportion of childhood injuries resulting from work with a focus on informal sector workers.
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