Formal Sector Employment Research Articles

Examining the Influence of Socio-Economic and Demographic Transformation on Employment In the Informal Sector From 2017 To 2020

This study explored the impact of socio-demographic changes on informal sector employment in South Africa from 2017 to 2020. Utilizing data from the Quarterly Labour Force Survey (QLFS), descriptive statistics and logistic regression were employed to analyze relationships between age, gender, ethnicity, marital status, and education within the informal workforce. The results revealed significant shifts in employment patterns, particularly affecting youth and marginalized groups. The findings emphasize the vital role of socio-demographic factors in shaping the informal sector and highlight the need for targeted policies to support vulnerable populations and improve their economic opportunities in a fluctuating labor market.

Effect of internet penetration on ICT export, economy, and employment in Bangladesh: Evidence from vector error correction and local projection

The advent of Industry 4.0 is imminent, with the internet emerging as a pivotal catalyst for this impending revolution as general-purpose technology (GPT). This study examines the transformative impact of internet penetration on economic development and employment dynamics in Bangladesh. Leveraging time series data from 1996 to 2022, and employing Vector Error Correction Model (VECM) and Linear Projections (LP) methodologies, the research reveals significant insights into the relationship between internet penetration, ICT exports, GDP growth, and employment trends. Findings indicate that a 10% increase in internet penetration led to a notable 4.7% rise in ICT exports and a marginal 0.8% increase in GDP, albeit with a concerning 1.1% decline in formal sector employment. While highlighting the positive influence of internet connectivity on trade and economic activities, the study underscores the challenges of job displacement and the need for inclusive and equitable growth strategies in the face of technological big push.

Informality and Female Labor Income Share

This paper presents original evidence to enhance understanding of the nexus between the informal sector and the economic well-being of women. Women encountering substantial obstacles in accessing formal employment opportunities tend to gravitate towards informal sector employment, which is characterized by lower productivity, lower wages, restricted access to credit and training, and an absence of social security coverage. Using two novel datasets of the size of the informal economy and female labor income share of 148 countries for the period 1991-2018, we show that while informality is associated with lower female labor income share in general, the results vary significantly with respect to countries with different income groups and development level. While there is not generally a significant and consistent association in high-income countries, the correlation is significantly negative in low-income countries and positive in middle-income ones.

Survival strategies of informal sector workers in Bali's tourism industry

The informal tourism sector plays a vital role in the local economies, particularly in destinations such as Bali. This aligns with the United Nations Sustainable Development Goal 8, which focuses on promoting decent work and economic growth. These workers, who are often ignored, greatly enrich the experience of tourism but encounter distinct obstacles on a daily basis. Gaining insight into their methods for staying alive is crucial. Informal workers face distinct limits compared to formal sector employees, resulting in less defined sustainability and growth strategies. A thorough investigation was carried out in nine regencies in Bali, utilizing observations and interviews, in order to examine these tactics. This method facilitated a comprehensive comprehension of their day-to-day routines and difficulties. The study identified four crucial survival strategies: implementing prudent financial management to sustain businesses and meet daily needs, utilizing communication skills to maintain income and continuity, enhancing social capital through positive relationships with fellow workers, and comprehending government policies. Out of these factors, effectively managing economic capital is crucial for maintaining livelihoods in the fiercely competitive tourism business. The results of this study provide a basis for future policies or interventions aimed at supporting and enhancing the lives of informal sector workers in tourist areas such as Bali.

Informal sector employment: Reasons for negative trends

Informal sector employment: Reasons for negative trends

Deepening Labor Market Inequalities During the COVID-19 Pandemic: Evidence from Turkey

This article investigates how the COVID-19 pandemic affected the labor market in Turkey, using a unique dataset collected via face-to-face interviews in the fall of 2020. In a developing country where labor market gaps are already stark, the study shows that the COVID-19 pandemic has exacerbated existing vulnerabilities in labor markets. Results indicate that women, low-educated individuals, parents, self-employed, and informal sector employees were at greater risk of worsened labor market outcomes. Moreover, the individuals at the intersection of these vulnerabilities suffered more. These findings suggest that the labor market policies introduced at the onset of the pandemic remained limited in protecting the jobs of vulnerable groups. HIGHLIGHTS COVID-19 magnified existing inequalities in the labor market in Turkey. The intersection between gender, education, and parenthood shaped the labor outcomes. Women without a high school degree and with children were the most vulnerable. Low-educated parents in particular were more likely to face income and job loss. Informally employed and the self-employed were more likely to suffer income losses.

Employment discrimination and labor market protections for sexual minorities in Brazil

This study estimates the impacts of an employment non-discrimination act (ENDA) for sexual minorities in Brazil. We contribute new evidence on ENDA impacts for sexual minorities in a distinct context from the current literature. Additionally, this is one of few studies to document labor market gaps by sexual orientation in Latin America. In this paper, we first present evidence of labor market gaps in employment, formal sector employment, hours worked, income and hourly earnings for lesbian and gay individuals in Brazil. For the same groups, we then estimate the impact of Brazilian legislation forbidding employment discrimination based on sexual orientation on these same labor market outcomes. Regarding initial pre-policy labor market gaps, conditioning on individual and work-related controls, we see that lesbian women experience wage premiums compared to straight women, while gay men experience wage penalties compared to straight men. We then estimate robust evidence that the implementation of employment protections increased income for gay men. For lesbian women, we estimate evidence of post-policy reductions in employment, but higher income and hourly earnings for those still working. Focusing on a Latin American country, we find many impacts consistent with the more recent existing evidence on ENDAs for sexual minorities.

Food insecurity among low-income households in Addis Ababa, Ethiopia

With the rapid urbanization in developing countries, poverty and food insecurity are becoming increasing prevalent, posing a major challenge to urban areas. The COVID-19 pandemic induced job losses and reduced income combined with inflation have further exacerbated the household food insecurity situation, particularly in cities of low-income countries. Our study aims to assess the extent of food insecurity and its determinants among low-income household in Addis Ababa, Ethiopia. We conducted a community-based cross-sectional study among a sample of 578 households in Addis Ababa. We estimated the household food insecurity status using the Household Food Insecurity Access Scale (HFIAS). An ordinal logistic regression model was used to assess the relationship between household food insecurity status and the socioeconomic and demographic covariates. The STATA 14 software package was used for data analysis. We found that household food insecurity was prevalent among low-income households in Addis Ababa, with a prevalence rate of 92.4 % (95 % CI: 90.2–94.6 %). Of these households, 33.6 % (95 % CI: 29.7–37.4 %) were severely food insecure. To cope with the food shortage, households were forced to reduce their food quantity and quality. We also found that respondent's education, engagement in income generating activities, and household wealth were independently associated with household food insecurity. We conclude that although supporting people living below the poverty line (pro-poor) remains the top priority for social protection programs, adapting the program to accommodate the working poor (informal sector employees and casual workers) is crucial, especially during shocks.

Factors That Influence the High Number of Elderly People Working in the Informal Sector.

As individuals age, they are expected to experience a natural progression that usually involves a slight and permanent decrease in bodily functions and physical abilities. Despite this, many older people remain active in the workforce. This study seeks to explore the correlation between the health conditions, disabilities, social factors, and demographic circumstances of elderly individuals engaged in both formal and informal employment sectors. This study utilizes an observational analytical method with a cross-sectional structure. The participants in the research involved all individuals aged 60 years and above who met the outlined criteria, totaling 15,034,946 respondents. The data analysis was conducted using multivariate logistic regression in Model II. Overall, most older adults are working in informal jobs. Moreover, most respondents are 60-69 years old, married, have a primary school certificate, own health insurance and a house, and live with family. In addition, the multivariate analysis shows the relationship between each variable and the informal sector working elderly. It is known that older women have a 1.45 times higher limited educational background, not having savings is 1.21 times, rural areas living 1.93 times, not being the head of the family is linked 1.34 times, poor health conditions are 1.01 times, and having a disability has a 1.20 times higher likelihood of informal-sector employment. Several variables are assigned as the determinants that increase the number of elderly working in informal sectors, including gender, education level, savings ownership, living areas, head of the family role, health status, and disability.

Breaking the Curse of “the Last Generation”: Employment Structure and China’s Population Crisis

It is widely acknowledged that the dangerously low birth rate threatens China’s future socio-economic stability. The existing literature typically regards China’s population crisis as a natural development trend, attributes it to family planning policies, or associates it with particular social, economic, and cultural conditions. Drawing from the social reproduction theory of feminist political economy, we develop a more encompassing analytical framework for China’s population crisis. We contend that the overarching context of China’s population crisis is the institutional transition from a balanced socialist social reproduction regime to an unsustainable developmentalist one. China’s employment structure is crucial to the structure of its social reproduction regime. Specifically, the formal economic sector facilitates a more accessible distribution of social reproduction cost for working-class families that maintains their willingness and ability to have children. Using provincial-level panel data from 1990 to 2021 and the General Method of Moments regression technique, we find positive, significant, and robust correlations between China’s formal sector employment and birth rate. These findings suggest that effective policies addressing China’s population crisis should focus on expanding the formal sector employment, expanding the social welfare system, and regulating the informal sectors.

Unlocking Pathways to Employment: Understanding Factors Influencing Youth Employability in Tanzania's Informal Sector

This study investigates the determinants of employability in the informal sector among youth in Tanzania using data from the Integrated Labor Force Survey (ILFS) conducted in 2020–2021, utilizing probity regression analysis. The model, statistically significant at a 1% level, indicates that variables including sex, capital access, income tax, social security, technical and computer skills, literacy and numeracy skills, physical skills, business registration, ownership, age, marital status, readiness for work, and education level collectively account for 4.4% of variations in youth employability. Positive impacts on employability are associated with capital access, numeracy and computer skills, paid employment, and level of education. The negative impacts are being male, income tax, social security coverage, literacy skills, physical skills, registered and owned businesses, married individuals, age, and readiness for work. The study suggests that attending school and possessing computer skills increases the likelihood of informal sector employment, while being male, subjected to income tax, covered by social security, having literacy skills, physical skills, registered or owned businesses, being married, aging, and being ready for work decrease the probability. The findings emphasize the importance of targeted interventions to enhance employability for youth in the informal sector, with considerations for gender, skills development, and business practices. The research recommended that enhancing access to education, programs in skill development, and improving numeracy and computer skills for youth will foster employability.

The ILO, the Politics of Statistics, and Changing Perceptions of Informal Work, 1970–Present

Abstract The article contributes to the history of labor statistics by identifying the social, political, and epistemic conditions that led to the recognition of informal work as a countable form of labor. The article traces the ILO's efforts since the 1970s to capture the initially elusive concept of the informal sector in an internationally recognized statistical definition and to introduce it into national accounts. It also elucidates how the understanding of informal work broke away from its original focus on developing countries and expanded in the 1990s, at a time when the spread of nonstandard employment had led to an increase in informal employment in developed countries as well. By analyzing the decades-long attempts to develop statistics on the informal sector and informal employment, the article illuminates labor as an object of contingent (and contested) statistical definition and also shows how actors representing informal workers mobilized statistical knowledge for political action.

Import Competition, Formalization, and the Role of Contract Labor

Abstract Does higher import competition increase formalization and aggregate productivity? Exploiting plausibly exogenous variation from Chinese imports, we provide empirical causal evidence that higher imports increases the share of formal manufacturing enterprise employment in India. This formal share increase is due to both the rise in formal-enterprise employment driven by high-productivity firms, and a fall in informal-enterprise employment. The labor reallocation is enabled by the formal firms’ hiring of contract workers, who do not carry stringent firing costs. Overall, Chinese import competition increased formal-sector employment share by 3.7 percentage points, and aggregate labor productivity by 2.87 percent, between the years 2000–2001 and 2005–2006.

Economic vulnerabilities, mental health, and coping strategies among Tanzanian youth during COVID-19

BackgroundThe COVID-19 pandemic has exacerbated struggles for youth living in poor households. Youth in rural Tanzania are particularly vulnerable given widespread poverty, lack of formal sector employment opportunities, and health risks. We examine influences of the pandemic on economic insecurity and mental health and explore the coping strategies employed by youth and their households.MethodsWe conducted mixed-method data collection with youth (N = 760 quantitative and N = 44 qualitative interviews) and households (n = 542) via mobile phone among a sub-set of a cohort from an on-going longitudinal sample in two rural regions in Tanzania. In addition to phone interviews, we collected data bi-weekly via SMS messaging. We present mixed-methods, descriptive analysis of the outcomes and longitudinally compare quantitative outcomes pre- and post-COVID-19, within the same individuals.ResultsAdverse economic impacts were most salient, and to cope, youth engaged in more labor and domestic chores. Compared to prior the COVID-19 pandemic, youth reported spending more time caring for elderly or sick household members and gathering firewood or nuts.ConclusionsThese findings underscore the potential opportunity to promote policies and programs which address risks youth face. Recommended measures include expansion and adaptation of social protection policies, strengthened food and nutrition surveillance and referral systems, and scaling up community-based mental health programming.

Public Sector Employees’ Arrangement and Plans Towards Retirement in Ghana

As a saying goes, if one fails to plan, that individual plans to fail. This well-known saying holds true relative to retirement that formal sector employees experience at a point in their life time. It is also a truism that effective and efficient retirement planning by employees is contingent on the information about retirement they receive. Although myriad of studies have been conducted on retirement experiences of formal sector employees, the specific activities that employees do for their retirement had attracted less research attention. The study aimed to close the gap identified, which is quintessential for the information, education and action of employees, employers, psychologists and counsellors. The study focused on employees of the Ghana Health Service (GHS) and Ghana Education Service (GES) in two municipalities. Stratified and simple random sampling procedures were adopted to select the employees to participate in the study. To garner the requisite data to achieve the study objectives, a questionnaire was designed, pre-tested and used. The data gathered were analysed using descriptive statistical tools. It emerged from the study that the employees’ principal sources of information on retirement are the media, private insurance companies, Social Security and National Insurance Trust (SSNIT), friends and relatives. It also emanated from the study that most of the employees were doing the following for their retirement: investment in shares, bonds, treasury bills and insurance policies; savings and standing orders. Stakeholders of the two services need to do more to help their employees to prepare well for an enhanced livelihood during retirement.

Towards meeting the food needs of urban households in sub-Saharan Africa: an analysis of formal sector employees’ participation in agricultural production in urban Wa, Ghana

Towards meeting the food needs of urban households in sub-Saharan Africa: an analysis of formal sector employees’ participation in agricultural production in urban Wa, Ghana

Examining The Inclusion of Persons with Visual Impairment in The Formal Employment Sector in Uganda

This article examines the inclusion of persons with visual impairments (PwVIs) in the formal employment sector in Uganda. It examines their experiences while searching for jobs, the attitudes of employers towards their employment, and their working conditions. The article is based on research on access to and retention of PwVIs in formal employment in Uganda. The research was examined within the theoretical perspectives of disability as a social model and human rights issues. A qualitative research design using a phenomenological approach was applied to obtain information through interviews. Ten employees with visual impairment in the formal employment sector were possessively selected. Results indicated that employers did not have enough knowledge and specialized manpower to employ PwVI. They also lacked reasonable accommodation provisions for employees with visual impairment. In addition, employers had negative attitudes towards PwVI, which led to discrimination, exploitation, abuse, and humiliation. Artikel ini meneliti inklusifitas bagi penyandang disabilitas netra di sektor ketenagakerjaan formal di Uganda. Artikel ini meneliti pengalaman mereka saat mencari pekerjaan, sikap penyedia kerja terhadap pekerjaan mereka, dan kondisi kerja mereka. Artikel ini didasarkan pada penelitian tentang akses dan retensi penyandang disabilitas netra di sektor ketenagakerjaan formal di Uganda. Penelitian ini diperiksa dalam perspektif teoritis tentang disabilitas sebagai model sosial dan isu-isu hak asasi manusia. Desain penelitian kualitatif menggunakan pendekatan fenomenologis diterapkan untuk mendapatkan informasi melalui wawancara. Sepuluh karyawan dengan disabilitas netra di sektor ketenagakerjaan formal dipilih secara positif. Hasil menunjukkan bahwa penyedia kerja tidak memiliki pengetahuan terkait ketenagakerjaan disabilitas yang cukup untuk mempekerjakan Penyandang disabilitas netra. Mereka juga tidak memiliki ketentuan akomodasi yang layak untuk karyawan dengan disabilitas netra. Selain itu, penyedia kerja memiliki sikap negatif terhadap penyandang disabilitas netra, yang mengarah pada diskriminasi, eksploitasi, penyalahgunaan, dan penghinaan.

Факторы, определяющие вклад малого и среднего бизнеса в экономику регионов России

This paper researches the parameters which can influence the development of small and medium-sized business in the regions of the Russian Federation. The theme is relevant because of the Russian government's special attitude to the small and medium-sized entrepreneurship (SME). Nowadays the national project “Small and Medium-Sized Business and Support for Individual Entrepreneurs” takes place, but its result might depend on some features of the regions. The main goal of the research is to find some factors that influence a share of the gross regional product produced by SMEs. For our research the sample includes data of 85 regions of the RF at the end of 2021. After the tests and changes needed, we estimated an econometric equation using OLS method. The independent variables in the model are as follows: a share of urban population which determines the basic conditions for a business, a number of the universities as a characteristic of the opportunities for mastering some professional skills, a wages index and an informal sector employment share, the amount of investment in fixed assets as a level of the regional development, indexes of innovation of a regional economy and SMEs, loans to SMEs, a number of the government's programs to the SMEs support. Statistics were taken from the Federal State Statistics Service publications, information-analytical materials of the Bank of Russia and other sources. The hypothesis of the research is our assumption of the positive influence of the factors under investigation on the dependent variable. The hypothesis was proved partly because not all the factors influence the development of SMEs.

Analysis, treatment modality and demographic characteristics of urolithiasis patients visiting Korle-Bu Teaching Hospital in Ghana.

Globally urolithiasis is on the rise and gradually becoming a public health concern due to the associated complications. This study reviewed the demographic characteristics, the chemical composition of stones, treatment modality and duration of hospitalisation of urolithiasis patients at Korle-Bu Teaching Hospital, Accra, Ghana. This was a retrospective study conducted between March 2019 and April 2022. Data from consecutive patients treated for urolithiasis were used for this study. Data on demographic characteristics, stones chemical composition, urine factors, urolithiasis treatment modality and duration of hospital stay after therapy were collated and analysed using descriptive and inferential approaches. The age of the patients ranged from 2 to 75 years with a mean of 45 (±13.4). The predominant age group for stone formation was 30-39 years - 52(26.3%). Urolithiasis was common among patients in the formal employment sector: 81(40.9%). All stones had two or more chemical compositions, with the combination of calcium oxalate monohydrate, calcium oxalate dihydrate and uric acid being the predominant stone type: 88(57.5%). Ureteroscopy with semi-rigid and Percutaneous nephrolithotomy were the predominant treatment modalities: 105(53.0%) and 74(37.4%), respectively. Escherichia coli was responsible for most urinary tract infections in urolithiasis patients 8(4.0%) and the least duration of hospital stay after the procedure was associated with the use of semi-rigid ureteroscope as the treatment modality with a median duration of 2 days (1-2 days) with P < 0.0001. Urolithiasis was predominant among professionals in the formal sector. All stones were mixed with Calcium oxalate monohydrate, calcium oxalate dihydrate, and uric acid combination being the majority. Ureteroscopy with semi-rigid and percutaneous nephrolithotomy were the common treatment modality.

Analyzing Structural Heterogeneity of Informal Sector Employment in Kenya

The informal sector accounts for 83 per cent of total employment in Kenya. This study sought to understand duality and its driving factors to inform policy on enhancing decent work in the informal sector in Kenya. Using a multinomial logit analysis, the study established that workers are motivated to engage in more than one job in the informal sector due to its structure, to get more earnings and to meet the standard of living. Indeed, employees with low skills, less income and those residing in rural areas are likely to have two jobs in the informal sector. Further, workers in formal full time employment are less likely to engage in duality compared to their counterparts who have no contract. Women and youth are more likely than men to work on multiple jobs in the informal sector.