Informal Sector Research Articles

Risk and Reward: How Shadow Economies Impact the Financial Practices of Militant Organizations

ABSTRACT Violent non-state actors often maintain diverse economic portfolios to fund their operations and endure. While some tactics yield limited funds, such as opportunistic robberies or kidnappings, other activities such as smuggling and drug trafficking can produce consistently high returns, but require complex planning, coordination and execution. This study delves into the nexus between the economic environments in which militant groups operate and their funding tactics. We hypothesize that the magnitude of a state’s informal economy plays a significant role in shaping the fundraising choices of militant organizations. Specifically, groups operating within states with expansive shadow economies are likely to lean towards intricate, high-yield fundraising tactics over unpredictable, hit-or-miss methods. States with sprawling informal sectors often grapple with governance deficiencies, that provide fertile ground for collaborations between militant factions and criminal syndicates and enable them to pursue lucrative funding opportunities that demand connections and logistical infrastructure. We use the case study of FARC to illustrate our argument, and test our arguments quantitatively using group-level data on the funding activities of militant organizations around the world between 1998–2012.

Informal Employment and High Burden of Out-of-Pocket Healthcare Payments among Older Workers: Evidence from Longitudinal Ageing Study in India.

India's economy is among the fastest growing in the world. However, a large share of informal workforce is a common characteristic of country's economy, comprises a significant portion of most of its labour markets. This workforce often receives low wages and lacks benefits such as strong social security and health coverage for all. The majority of healthcare spending in India is private. As India's population ages and the informal sector expands, it is expected that many of these workers will continue to work beyond the retirement age to bear their own healthcare costs due to lack of savings, pensions and the precarious nature of their employment. In this context, this study estimates the burden of Out-of-Pocket (OOP) payments on India's informal older workers compared to their formal counterparts, using data from the first wave of the nationally representative Longitudinal Ageing Study in India. According to estimates from the Two-part regression model, informal older workers pay, on an average, INR 1113 (p<0.01) and INR 55 (p<0.05) less than their formal counterparts for inpatient and outpatient care, respectively. However, probit regression models revealed that the burden of combined (both inpatient and outpatient) OOP payments exceeding (by 40%, 20%, and 10%) of their income is significantly higher among informal older workers compared to formal older workers. The study underscores the need for strengthening of universal health insurance schemes to ensure everyone has access to medical services without experiencing financial hardship. It also advocates for policies specifically tailored towards informal workers, considering their unique challenges with regard to livelihoods and healthcare security. In particular, this encompasses bolstering the existing social security and healthcare system, and related policies for ensuring financial security against OOP payments, especially for informal workers and all the population in general.

Ghosts in the labour market: perceived health implications of informal labour in Australia.

Employment conditions are important social and commercial determinants of health. Informal employment-also known as 'cash-in-hand' and 'undeclared' work-is a discrete employment condition that has salience around the world. Fuelled by neoliberal ideology, informal employment has become increasingly common in high-income countries. Public health research concerning the health of informal workers comes largely from low- and middle-income countries, where the phenomenon is more visible. There has been little research on the health effects of informal employment in high-income countries including Australia. Twenty-nine workers aged 18 years and older, who were undertaking informal work activities, were recruited using social media and an online marketplace in Tarndanya (Adelaide-Kaurna Country), Australia. Qualitative narrative data, demographic profiles, and physical and mental health scores were collected. Most informal workers reported unfair and indecent employment conditions including job insecurity, low income, coercion, and lack of respect and dignity at work, and were often exposed to unsafe and unhealthy work environments. Workplace injuries and exposure to occupational hazards were common; and Physical and Mental Component Scores were poorer among informal workers when compared to the population of South Australia as a whole. With informal employment in Australia described as part of a 'significant, pervasive, damaging and growing' problem, there is a need for a health promotion lens over industrial relations policies in the interest of creating equitable access to fair and decent work.

Credit Access and Women Empowerment: Evidence from India’s Informal Sector

Credit Access and Women Empowerment: Evidence from India’s Informal Sector

Credit Access and Women Empowerment: Evidence from India’s Informal Sector

Credit Access and Women Empowerment: Evidence from India’s Informal Sector

Do Informal Economy Drivers ‘Gig It’? Persistence of Informal Economy in the Face of Digitization

Do Informal Economy Drivers ‘Gig It’? Persistence of Informal Economy in the Face of Digitization

Do Informal Economy Drivers ‘Gig It’? Persistence of Informal Economy in the Face of Digitization

Do Informal Economy Drivers ‘Gig It’? Persistence of Informal Economy in the Face of Digitization

Evaluation of knowledge and practices on antibiotic use: a cross-sectional study on self-reported adherence to short-term antibiotic utilization among patients visiting level-1 hospitals in Lusaka, Zambia.

Antimicrobial resistance (AMR) is a global public health problem affecting healthcare systems. Short-term antibiotic non-adherence is thought to be one of the factors contributing to antibiotic resistance. This study aimed to evaluate knowledge and practices towards short-term antibiotic use on self-reported adherence among patients visiting level-1 hospitals in Lusaka, Zambia. This was a multicentre institutional-based cross-sectional study conducted among 385 adult participants from 11 September to 30 September 2023 using an adopted structured questionnaire. Analysis of the data involved descriptive and inferential statistics, where significance was determined at P < 0.05. Of the 335 participants, 56.7% displayed good knowledge and 77.3% low adherence towards antibiotic use. 54.6% thought that antibiotics were effective for viral infections, and 43.9% correctly recognized the definition of AMR. Being in formal employment (crude OR: 2.5, CI: 1.08-5.78, P: 0.032) was significantly associated with a higher likelihood of good knowledge about antibiotics while being divorced (adjusted OR: 2.5, CI: 1.23-6.10, P: 0.013) and having good knowledge (adjusted OR: 2.9, CI: 1.73-5.10, P = 0.048) were significantly associated with a higher likelihood of adherence to antibiotics. Regarding antibiotic practices, half (50. 0%) of the respondents had utilized antibiotics in the previous year while 58.2% had taken antibiotics for addressing a common cold. Furthermore, 74% reported to have bought antibiotics without a prescription. This study found that participants attending level-1 hospitals had relatively good knowledge and poor adherence towards antibiotic use. Additionally, the participants demonstrated poor antibiotic use practices in almost all statements related to antibiotic usage.

Conditions of Workers Who Worked from Home during the Covid-19 Pandemic in Indonesia

Work from Home (WFH) is one of the policies implemented by the Indonesian government to contain the cases of Covid-19 in Indonesia since March 2020. People were required to adapt to the new normal way of working by means of WFH. WFH applied to workers in both formal and informal sectors. While those working in the formal sector can get a lot done through remote working, the types of work that can be done remotely in the informal sector are still very limited. The WFH way of working has finally become a trend that is considered flexible and has advantages for the workforce to be more productive without having to leave the house. By using the logit model, this study seeks to answer the characteristics of the formal and informal sector workers who work at home as an effect of the Covid-19 pandemic. The result show that the Covid-19 pandemic was the primary reason why workers did WFH and that a majority of them are from the formal sector. The activities of the majority of the workforce during WFH are communication, promotion, and transactions which are mostly carried out by married women workers. In addition, workers who do WFH tend to be young workers who are highly educated and are familiar with the internet. Keywords: labor characteristics, work from home, Indonesia

‘Things have changed since we last spoke…’: The impacts of parental death on the life and livelihood of a young informal vendor in Dar es Salaam, Tanzania

AbstractWhile an increasing number of studies concerning youth and informality have examined the complex relationship between youth, informal work and transitions to adulthood, this literature has paid little attention to how the death of a family member presents distinctive challenges to young vendors' life and livelihood progression. Addressing this, the paper draws on a case study of a small‐scale informal worker in Dar es Salaam, Tanzania, who was participating in in‐depth ethnographic research when their father died suddenly. Through this, it investigates how parental death intersects with the challenges a young vendor experienced working informally while simultaneously attempting to achieve transitions to anticipated adulthood. Life‐mapping interviews and participatory timeline diagrams were employed, gaining rich insights into a young vendor's experiences of parental death, revealing how these were shaped by an interplay between the past, present and future. More specifically, the research, which brings together literature concerning youth, informality and family relations, explores how parental death can (re)configure a young person's household roles, responsibilities and relations in response to sudden precarity in the present, reshaping priorities and plans towards achieving goals over different timeframes. Given persistent levels of informality and uncertainty across employment in sub‐Saharan Africa and beyond, this article provides a timely contribution by highlighting the need for more studies to investigate how parental death creates and exacerbates the challenges youth vendors experience, constraining their abilities to grow and sustain their lives and livelihoods within the informal sector.

Lebanon’s Economic Development Risk: Global Factors and Local Realities of the Shadow Economy Amid Financial Crisis

The shadow economy’s size and impact remain subjects of extensive research and debate, holding significant implications for economic policy and social welfare. In Lebanon, the ongoing crisis since 2019 has exacerbated severe economic challenges, with the national currency’s collapse, bank crisis, and foreign reserve deficits. The World Bank reports Lebanon’s financial deficit surpassed $72 billion, three times the GDP in 2021. Despite a drastic decline in GDP, imports have surged to near-pre-crisis levels, exacerbating economic woes and indicating a constant outflow of foreign currencies. Considering such contracting facts, this paper aims to investigate global factors influencing the shadow economy and discern their manifestations in Lebanon during financial crises. Our methodology involves a comprehensive literature review, alongside a case study approach specific to Lebanon. This dual-method strategy ensures a detailed understanding of the shadow economy’s impact and the development of actionable insights for policy and economic reform. Through this approach, we seek to contribute to a nuanced understanding of Lebanon’s economic landscape and provide valuable guidance for policy decisions aimed at reducing corruption, promoting transparency, and fostering a robust formal economy. The increase in the shadow economy raises the formal economy risk, as resources and activities diverted to informal channels hinder the growth and stability of the official economic sector. Although focusing on Lebanon, this analysis deepens the comprehension of the economic landscape and provides valuable guidance for policymakers, researchers, and stakeholders, aiming to address the root causes of informal economic activities and promote sustainable growth in developing countries in general.

Road maintenance and local economic development: Evidence from Indonesia’s highways

This paper estimates the local welfare impacts of highway maintenance investments. We instrument road quality exploiting Indonesia’s two-step budgeting process for allocating funding to local road authorities. Using comprehensive data on road quality from 1990–2007, we find evidence that better roads help manufacturers create new jobs, enabling worker transitions out of informal employment, and increasing labor income. Road quality also changes the cost of living, reducing perishable food prices but also raising housing prices. We estimate the elasticity of household welfare with respect to road quality to be 0.1 and the benefit/cost ratio for road maintenance investments to be 2.3.

Wage subsidy in the DRC: A CGE analysis

This paper analyzes the impact of wage subsidies on lower-skilled formal workers in the Democratic Republic of Congo (DRC). It employs a multi-sectoral, empirically-calibrated general equilibrium model to capture the economy-wide transactions between the formal and informal sectors and assess policy simulations in the DRC. The simulations, both in the short and long run, indicate that when the government provides wage subsidies to lower-skilled workers, it significantly improves the real disposable incomes of both formal and informal households. There is a general increase across formal and informal sectors in real household disposable incomes due to the wage subsidy. The results show that subsidy allocation narrows the income gap between high and low-income households, as well as between formal and informal sectors. The findings are insightful for wage policy simulations, as the wage subsidy targeting lower-skilled formal workers increases real GDP from the expenditure side by 1.19% and 3.19% in the short and long run, respectively, from the baseline economy.

Supplementary rental supply? The digital market for low-cost and informal housing in Sydney, Australia

This article examines real estate platforms and the data they generate to provide new insights into housing markets and practices, focusing on lower-cost and informal sectors, where building or rental regulations are often bypassed or contravened. We examine online listings advertised in Sydney, one of the most expensive cities in Australia and the world, compiling data from four dominant platforms – Realestate.com.au, Flatmates.com.au, Gumtree.com.au and Airbnb.com – each of which offers a particular type of rental accommodation. Using these datasets, we identify a typology of lower-cost and informal tenures and dwelling units, ranging from secondary dwellings and illegally subdivided apartments to shared accommodation and precarious rental agreements. Our study highlights a supplementary supply of rental housing, operating within the conventional private rental market, accessed and made visible via the platforms we examine. Applying a statistical regression approach, we examine relationships between concentrations of informal housing supply and socio-economic variables. The findings reveal intersections between digital platforms and evolving informal market practices and have implications for urban planning and housing policy.

From individual to household decision‐making: A practical perspective on the base of the pyramid consumer

AbstractThis paper proposes a new household decision‐making model for base of pyramid (BoP) consumers. Many decision‐making models focus on general consumer behaviour theory, with few focusing on the resource constraints experienced at the BoP. By focusing on the dynamics of household decisions, the data collected bring a unique perspective to BoP consumer behaviour and extend recent work in the BoP domain. The study comprised qualitative interviews with 61 household representatives (representing 233 household members) to explore decision‐making, loyalty, budgeting, shopping and category trade‐offs. The study proposes a household‐focused decision‐making framework, which is far more characteristic of BoP consumer behaviour (as opposed to isolated individual decisions). The proposed framework reveals the impact of situations and financial constraints on BoP household decision‐making and how most households operate in both the formal and informal economy. Family obligation was observed to be a key factor, as well as how functional illiteracy drives brand loyalty but also creates embarrassment. Word of mouth trumps all other sources of information and, due to household complexities, there is significant decision‐maker ambiguity, making it hard to define a target audience with a communication strategy. Brands are important, but fundamental value is still key and there is inexorable monthly variation in finances, making category trade‐offs commonplace.

A comprehensive review of current techniques, issues, and technological advancements in sustainable E-waste management

Electronic garbage (E-waste), which is caused by the global fast obsolescence and disposal of electronic gadgets, has become a major environmental concern. Adoption of sustainable E-waste management strategies has become crucial to address the growing effects of e-waste on the environment and human health. This in-depth overview of existing practices, problems, and new technology developments in sustainable E-waste disposal is presented in this thorough review article. The article analyses the efficiency of frequently used E-waste management strategies for reducing environmental effects and fostering resource recovery, including recycling, refurbishing, landfilling, and extended producer responsibility (EPR) initiatives. The main difficulties that policymakers, producers, recyclers, consumers, and employees in the unorganized sector of the economy confront in managing e-waste are also discussed, along with possible solutions. The analysis emphasizes the value of ecologically sound E-waste recycling techniques and examines new technology advancements, such as automated disassembly and trash sorting based on artificial intelligence, aimed at improving recycling efficiency and lowering environmental burdens. Along with successful case studies, the idea of a circular economy and sustainable product design in E-waste management are also covered. It is highlighted the need of strong legislative frameworks, international partnerships, and public engagement in responsible E-waste disposal in order to address the issue of transboundary flows of E-waste. In its last section, the paper sketches out the picture for the future and makes suggestions for how governments, businesses, and other stakeholders may adopt sustainable E-waste management approaches and further the development of a circular economy for E-waste.

Tapping imaginaries: Guinness, masculinity, and the promise of Africa Rising

ABSTRACT This article interrogates masculinity and the consumer politics of late capitalism in urban Africa. Engaging scholarship on racialized masculinities, branding, and African cities with special attention to the Nigerian context, it conducts a media analysis of three Guinness Africa advertising campaigns: Made of More, Michael Power, and Greatness. Building off of its centuries-long ties between the African male consumer and European capital, in 1998 Guinness created the fictional Michael Power in a marketing coup that was to elevate the brewery to unrivaled dominance over the continent’s beer import market. Subsequent campaigns were to glorify everyday heroes: Greatness declaring a ‘drop of greatness in each man’ and Made of More extolling the sartorial elegance of Congolese dandies. This representational shift reflected the brewery’s recognition of changing models of accumulation in the African urban informal economy and the corresponding aspirations that they ignited in its men. Bypassing scripts of hegemonic masculinity, this new era of Guinness advertising showcased self-made men in a laissez-faire economy, simultaneously celebrating and depoliticizing the racialized global inequalities and gendered politics of contemporary African urbanization. Guinness’s successful appeal to twenty-first-century African male consumers provides a case study of multinational marketing in bottom billion capitalism.

Indigenous food production in a carbon economy

Indigenous communities in the North American Arctic are characterized by mixed economies that feature hunting, fishing, gathering, and trapping activities-and associated sharing practices-alongside the formal wage economy. The region is also undergoing rapid social, economic, and climate changes, including, in Canada, carbon taxation, which is impacting the cost of fuel used in local food harvesting. Because of the importance of local foods to nutrition, health, and well-being in Arctic Indigenous communities, there is an urgent need to better understand the sensitivity of Arctic food systems to social, economic, and climate changes and to develop plans for mitigating potential adverse effects. Here, we develop a Bayesian model to calculate the substitution value and carbon emissions of market replacements for local food harvests in the Inuvialuit Settlement Region, Canada. Our estimates suggest that under plausible scenarios, replacing locally harvested foods with imported market substitutes would cost over 3.1 million Canadian dollars per year and emit over 1,000 tons of CO2-equivalent emissions per year, regardless of the shipping scenario. In contrast, we estimate that gasoline inputs to harvesting cost approximately $295,000 and result in 315 to 497 tons of emissions. These results indicate that climate change policies that fail to account for local food production may undermine emissions targets and adversely impact food security and health in Arctic Indigenous communities, who already experience a high cost of living and high rates of food insecurity.

Importance of artificial intelligence in achieving sustainable development goals through financial inclusion

Purpose The purpose of this paper is to provide evidence on the relationship between artificial intelligence (AI) and financial inclusion to achieve sustainable development goals (SDGs), an agenda set by United Nations for 2030. Financial inclusion is an enabler of 8 of the 17 SDGs. This paper emphasizes the introduction of AI in the financial sector, which is indispensable for achieving financial inclusion and plays a crucial role in the achievement of SDGs. Design/methodology/approach This study adopts qualitative research methodology to highlight the significance of AI in achieving high levels of financial inclusion in an economy. Both narrative and comparative approaches are used to provide empirical evidence for reaching the UN SDGs target through AI-assisted financial inclusion. Findings AI implementation in finance enables people to take part in the formal financial sector and thus, enhances economic growth and reduces poverty. Research limitations/implications This research is limited in its data. Only five top AI applications are chosen and comparison is made between two countries only. Future research should consider it as an established concept and include more data to strengthen the evidence. Practical implications The results of this paper will help policymakers convince governments and institutions to put their efforts toward AI implementation in financial infrastructure of countries. Originality/value This research is unique in providing real-life examples and cases demonstrating the significance of AI implementation in the financial sector. Recent literature lacks evidence on the relationship of AI, financial inclusion and SDGs. This study adds to the existing literature by compiling data on top AI applications and comparing the performance of countries in achieving financial inclusion with the help of AI.

Income, Education, Age, Rural or Urban Living and Work Sector for Generation Z Women in West Nusa Tenggara, Indonesia

Generation Z is the generation born between 1997 and 2012. The characteristics of women's income, education, place of residence and work sector are very important to study because they can influence economic development, especially in West Nusa Tenggara, Indonesia. This research aims to analyze the socio-economic problems of Generation Z women who work in each sector, both formal and informal sectors in West Nusa Tenggara. The method used in this research is descriptive quantitative analysis using data from SAKERNAS in August 2023. The number of Generation Z women used in this research is 398 women who work in West Nusa Tenggara. The results of this research found that Generation Z women in West Nusa Tenggara, Indonesia mostly work in the formal sector, namely 59.55%, while most of their income is in the range of less than the Regional Minimum Wage for West Nusa Tenggara Province. Most of the Generation Z women in West Nusa Tenggara are junior high school graduates and the majority live in the urban areas, namely 59.80%. This research provides a broad picture of the socio-economic dynamics of Generation Z women in West Nusa Tenggara, Indonesia.