Informal Sector Research Articles

Sustainable waste management practices in the informal sector: Towards industrial symbiosis

Industrial pollution is considered to be routed in the waste and byproducts of the production process. Traditional pollution control approaches try to eliminate and/or treat the pollutants which are often technically complicated and expensive. In this regard, industrial ecology and industrial symbiosis have emerged as effective strategy to eliminate industrial pollution. This principle requires the generated waste/by-products absorbed in the same or other industrial process cycles and thus the material cycle remains closed. Industrial pollution appears as a big problem in the global south countries, where industrialization is considered as the main thrust of economic development. Usually, in such countries formal pollution control approaches are primarily directed to the formal sectors (such as state owned and legally registered industries), informal sectors are often left behind. Although the role of informal sector is increasingly being recognized for sustainable development, their significance in pollution abatement is a less discussed topic. This article attempts to investigate the informal industrial sector in Dhaka, Bangladesh with empirical evidence. Adopting a qualitative approach with field investigation of the informal industries and detail interviews, this study identified that the informal industries are closely linked in clusters according to the manufacturing process and continue material/byproduct/waster exchange primarily from the need to minimize cost. The studied patterns of waste management practice indicate existence of industrial symbiosis without adequate academic/technical knowledge and designed efforts. This suggests that the informal sector can meaningfully contribute to sustainable development offering insights for the application of similar approaches in the formal sector.

Gender Disparities in Kazakhstan’s Labor Market: Evidence from the Quality Employment

Gender disparities in the labor market have remained a critical area of economic research, particularly in understanding how men and women experience different employment conditions. This study aims to assess the quality of employment for men and women, focusing on the multidimensional quality of jobs, including formal and informal employment, unemployment, and access to highly qualified professions. The research employs a standardized approach using Z-scores to analyze deviations from average labor market indicators across genders, enabling a comparative evaluation of employment trends over the past decade. Data were drawn from national labor force statistics, covering a wide range of indicators such as labor force participation, employment rates, unemployment, and sectoral distribution. The results of the study show significant gender differences. The average level of the involvement of women in the labor force during the study period was 64.96%, while for men this figure reached 76.38%. The employment rate among women was 4.5% lower on average compared to men, and for women in informal employment, it was 20.16% versus 20.76% for men. Women also showed a higher unemployment rate: 5.71% versus 4.36% for men. The study also highlights the impact of external economic shocks, such as the COVID-19 pandemic, on labor market dynamics, exacerbating gender disparities. Future research should focus on developing policies that reduce informal employment and increase job stability for women. Further study of the long-term effects of global economic crises on gender differences in the quality of employment is also necessary to develop effective measures.

Understanding the informal waste sector for sustainable waste management using the pressure-state-response framework: a case study in Balikpapan, Indonesia

Understanding the informal waste sector for sustainable waste management using the pressure-state-response framework: a case study in Balikpapan, Indonesia

Effect of Economic Policies on Income Inequality: A Comparative Study of Switzerland and Bolivia

Purpose: The aim of the study was to examine the effect of economic policies on income inequality: a comparative study of Switzerland and Bolivia. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Switzerland, with its advanced economy, implements progressive tax policies, robust social welfare programs, and equitable education systems, contributing to relatively low income inequality. In contrast, Bolivia, a developing nation, faces challenges in reducing income inequality due to less effective economic policies, limited social safety nets, and a larger informal sector. The study underscores that while Switzerland's policies effectively mitigate income disparities, Bolivia's efforts are hindered by structural economic issues and policy limitations. Unique Contribution to Theory, Practice and Policy: The Kuznets curve theory, the human capital theory & the social stratification theory may be used to anchor future studies of climate change on risk management practices in agriculture in Switzerland. From a practical perspective, the study provides actionable insights for improving the design and implementation of economic policies. The study offers several policy recommendations for both developed and developing economies. Policymakers in Switzerland should consider revising tax policies to address the increased burden on higher-income individuals and improve the overall equity of the system.

Indonesian Migrant Women Workers in Türkiye and Media Representation at Home: Precarity Works and Mediating the State Protection

This qualitative study examines the portrayal of Indonesian migrant women workers in Türkiye by major Indonesian online media outlets from 2019 to 2023. Using content analysis, the research explores dominant media representations surrounding workers in Türkiye's care service and tourism sectors. Findings reveal patterns of precarious work, exploitation, and vulnerability to undocumented employment, particularly involving Syrian employers. The study highlights a significant shift in media coverage from sensationalist reporting to echoing government narratives on combating undocumented migration. This shift aligns with Indonesia's labour-export policy reforms under President Jokowi, which aim to promote labour migration to formal sectors and distance the country's image from domestic worker exports. The research demonstrates how media reflects and reinforces state migrant protection policies through "domesticated protection." However, this approach inadvertently perpetuates victimization and potentially exacerbates vulnerabilities by stigmatizing unofficial migration channels. While intended to safeguard workers, stringent regulations may if not already contribute to increased undocumented migration. By analyzing the nexus between media representation, state policies, and migrant precarities, this study contributes to understanding the complex dynamics of labour migration in an emerging corridor, calling for a more nuanced approach to media coverage, policy-making, and future studies that acknowledges both migrant agency and structural challenges.

The possibility of adopting a centralized electronic invoice system and its impact in determining the tax base: An analytical study of the opinions of a sample of academics, professionals and employees of income tax departments - Kurdistan Region of Iraq - Erbil city)

This research aims to demonstrate the extent to which tax departments (income tax) can adopt the central electronic invoice system as one of the modern technological systems that can be used by the tax authority in order to reach a fair tax base for taxpayers. To achieve the research objective, an electronic questionnaire was distributed to a sample of (104) individuals from accounting academics in universities and institutes in Erbil city and professionals and employees of income tax departments. The results were analyzed using the statistical program (SPSS). The research reached several conclusions, including that the central electronic invoice system is an effective tool to enhance transparency and efficiency in the tax system despite potential challenges. In addition, adopting this system will lead to improving the determination of the tax base, reducing tax evasion and stimulating the formal economy. Success in this field requires close cooperation between the government and companies to provide the appropriate technical and legal environment. There is a possibility for tax departments to adopt the electronic invoice system and work on it to develop the process of determining the tax base for taxpayers. The study recommended the necessity of spreading the culture of voluntary commitment to join the electronic invoice system and including the electronic invoice and other accounting programs in the curricula of accounting departments in colleges and institutes and conducting training courses and seminars for the tax community and technical workers on dealing with the electronic invoice system in tax departments.

The Gig Economy and its Implications for Human Resource Management in Jambi: A Preliminary Investigation

The gig economy, characterized by temporary and flexible work arrangements, is rapidly expanding globally. However, its implications for human resource management (HRM) in developing regions like Jambi, Indonesia, remain largely unexplored. This study aims to provide a preliminary investigation into the gig economy's impact on HRM practices in Jambi. A mixed-methods approach was employed, involving a survey of 150 gig workers and 50 traditional employees in Jambi, along with in-depth interviews with 10 HRM professionals from various industries. The survey data was analyzed using descriptive statistics and comparative analysis, while the interview data was analyzed thematically. The study found that gig workers in Jambi face challenges related to job insecurity, lack of benefits, and social isolation. HRM professionals reported difficulties in recruiting, managing, and retaining gig workers due to the lack of formal employment contracts and the need for flexible work arrangements. The findings also suggest that the gig economy is creating new opportunities for HRM practices, such as the use of technology for talent acquisition and performance management. In conclusion, gig economy is transforming the nature of work in Jambi, posing challenges and opportunities for HRM. This study highlights the need for HRM professionals to adapt their practices to the changing landscape of work. Further research is needed to explore the long-term implications of the gig economy for HRM in Jambi and other developing regions.

Appraising the impact of currency redesign on the nigerian construction artisans in the informal sector

The currency redesign era may complicate financial transactions for construction artisans in the informal sector and threaten to achieve sustainable development goals (SDGs) (1 and 2). The majority still need a bank account which may increase unemployment and hunger. Therefore, the study investigated Nigerian construction artisans’ challenges in the informal sector and proffered measures to mitigate future currency redesign challenges and, by extension, improve achieving Goals 1 and 2. The study employed a qualitative research design and engaged 28 knowledgeable participants in Lagos, Nigeria. The research achieved saturation with the selected participants and used a thematic analysis to analyse the collected data. The study shows that currency redesign is germane to construction sector advancement and developing economies at large. The impact includes increased unemployment, hunger, low patronage and productivity. These are threats to achieving Sustainable Development Goals 1 and 2. Among the top-ranked measures suggested are encouraging bank account openings, currency redesign should be in sequence and planned, public education and cash handler education purposes, and skills training (reskilling and upskilling). The study extends currency redesign and the construction artisans in the informal sector literature by showing that currency redesign is pertinent to the sector’s growth.

Patient’s willingness to pay for improved community health insurance in Tanzania

Globally, achieving universal health coverage remains significant challenge. Health insurance coverage in low- and middle-income countries is still low with only a few African countries managed to reach 50% coverage. This study aimed to investigate the factors influencing patients’ willingness to pay (WTP) for medication and various versions of the improved Community Health Insurance Fund (iCHF) in Tanzania. A facility-based cross-sectional study was conducted in all hospitals, health centres, and eight randomly sampled dispensaries, sampling participant from the queue, one out of every three patient based on their order of entry into consultation room, and interviewed 1,748 patients in Kilombero and Same districts in Tanzania. We used multi-stage Contingent Valuation Methods exploring data collected during client exit interviews. We employed a random utility model and estimated WTP through an ordered logit model. The independent variables were; patient’s gender, age, marital status, education, employment status, Non-Communicable Disease (NCD) status, health insurance status, and the type of healthcare facility level. Our findings revealed that most patients exhibited a WTP of an amount equivalent to the current iCHF premiums and would also be willing to pay for an augmented iCHF premium inclusive of additional medication coverage. Upon adjusting for demographic characteristics, we observed that patients enrolled in an insurance program or benefiting from user fee waivers demonstrated a lower WTP for medication, while those with non-communicable diseases (NCDs) and seeking care in private facilities exhibited a higher WTP. Furthermore, patients with a secondary education level or above generally displayed higher WTP for premiums. Conversely, patients enrolled in private insurance and availing user fee waivers, along with those accessing care in public facilities, demonstrated a lowered WTP for iCHF premiums. These results highlight the need for targeted interventions to address systemic deficiencies and improve access to medicines. Our conclusions is that policies considering NCD status, education levels and income status are important when designing health insurance schemes for the informal sector in Tanzania, with the goal of increasing uptake of CHF.

The gender gap in outpatient care for non-communicable diseases in Mexico between 2006 and 2022.

Equitable health service utilization is key to health systems' optimal performance and universal health coverage. The evidence shows that men and women use health services differently. However, currentanalyses have failed to explore these differences in depth and investigate how such gender disparities vary by service type. This study examined the gender gap in the use of outpatient health services by Mexican adults with non-communicable diseases (NCDs) from 2006 to 2022. A cross-sectional population-based analysis of data drawn from National Health and Nutrition Surveysof 2006, 2011-12, 2020, 2021, and 2022 was performed. Information was gathered from 300,878 Mexican adults aged 20years and older who either had some form of public health insurance or were uninsured. We assessed the use of outpatient health services provided by qualified personnel for adults who reported having experienced an NCD and seeking outpatient care in the 2 weeks before the survey. Outpatient service utilization was disaggregated into four categories: non-use, use of public health services from providers not corresponding to the user's health insurance, use of public health services from providers not corresponding to the user's health insurance, and use of private services. This study reported the mean percentages (with 95% confidence intervals [95% CIs]) for each sociodemographic covariate associated with service utilization, disaggregated by gender. The percentages were reported for each survey year, the entirestudyperiod, the types of serviceuse, and the reasons for non-use, according to the type of health problem. The gender gap in healthservice utilization was calculated using predictive margins by gender, type of disease, and survey year, and adjusted through a multinomial logistic regression model. Overall, we found that women were less likely to fall within the "non-use" category than men during the entire studyperiod (21.8% vs. 27.8%, P < 0.001). However, when taking into account the estimated gender gap measured by incremental probability and comparing health needs caused by NCDs against other conditions,compared with women, men had a 7.4% lower incremental likelihood of falling within the non-use category (P < 0.001), were 10.8% more likely to use services from providers corresponding to their health insurance (P < 0.001), and showed a 12% lower incremental probability of using private services (P < 0.001). Except for the gap in privateservice utilization, which tended to shrink, the others remained stable throughout the period analyzed. Over 16years of outpatient service utilization by Mexican adults requiring care for NCDs has been characterized by the existence of gender inequalities. Women are more likely either not to receive care or resort to using private outpatient services, often resulting in catastrophic out-of-pocket expenses for them and their families. Such inequalities are exacerbated by the segmented structure of the Mexican health system, which provides health insurance conditional on formal employment participation. These findings should be considered as a key factor in reorienting NCD health policies and programs from a gender perspective.

Vulnerability of the informal sector in an emerging economy: a multi-level analysis

ABSTRACT This study investigates the determinants of vulnerability and the vulnerability gap between workers in an emerging economy’s formal and informal employment sectors. To this end, a multi-level model combined with a fixed-effect model was employed to capture idiosyncratic and covariate vulnerabilities. The results from the multi-level model show signs of a ‘cycle of vulnerability’ for informal workers, in that covariate shocks indirectly impact idiosyncratic shocks, which in turn leads them to suffer more from covariate vulnerability. Compared to those with formal employment, informal workers are 1.2% more likely to fall into poverty in the future. Among wage workers, informal wage workers had higher vulnerability indices than formal sector workers, with a vulnerability gap of 3.1%. These gaps are more significant when accounting for time-invariant unobserved heterogeneity. Based on these results, it is vital to consider idiosyncratic and covariate components to reduce vulnerability in the informal sector. Specifically, for informal workers who engage in business and industry sectors at high risk of income shocks, the government should monitor and provide them with legal frameworks that will prevent them from being exposed to a high risk of vulnerability. Additionally, a policy expanding voluntary social insurance should be promoted to support informal groups.

Informal Employment Areas for Syrian Refugees in Turkey: A Fuzzy TOPSIS Analysis

Informal employment is seen as an important problem in developing countries. Although unregistered employment contributes to the country's economy in terms of production, it can negatively affect macroeconomic indicators such as tax loss and unemployment. Unregistered employment can be made up of nationals of the countries themselves, as well as foreign workers. The aim of this study is to reveal in which sectors Syrian refugees are preferred in unregistered employment in Turkey. Fuzzy TOPSIS was used as a method in the study. Fuzzy TOPSIS gives a ranking according to alternatives and criteria. Analysis results show that Syrian refugees are preferred in agriculture, construction and textile sectors, respectively, in unregistered employment in Turkey. With these results, it is suggested that Turkey's go-to legal regulations in immigration policies and unregistered employment and those asylum seekers should be evaluated at the legal level regarding the country's economy.

Why formalize? Examining the context of Peruvian women microentrepreneurs

Purpose In Latin America, the growing participation of women microentrepreneurs who continue to operate in the informal sector stands out. The purpose of this study is to analyse if the context where the business is developed influences the gender perspective in the decision of the microentrepreneur to remain in the informal sector, mainly in Peru, which registers high rates of informality in businesses led by women. Design/methodology/approach The National Household Survey for the period 2014–2021 is used with a sample of 63,020 micro and small Peruvian companies that have been in operation for more than three years. The data is analysed with the logistic regression technique. Findings The results show that microenterprises run by women are less likely to be formal. However, this situation would change if these businesses were larger. In addition, women microentrepreneurs face limitations in accessing resources, and their businesses frequently run from their homes, allowing them to hide their activities from regulatory bodies. Originality/value The context of Peruvian women microentrepreneurs who have been in operation for over three years and who persist in informality is analysed. It is essential to know the characteristics of this sector to formulate policies that encourage the formalization of companies, particularly in Latin America, incorporating gender differences.

Caregiving experiences and practices: qualitative formative research towards development of integrated early childhood development interventions targeting Kenyans and refugees in Nairobi’s informal settlements

BackgroundEvidence is needed to understand factors that influence child development and caregiving experiences, especially in marginalized contexts, to inform the development and implementation of early childhood development (ECD) interventions. This study explores caregiving practices for young children in an urban informal settlement with Kenyans and embedded refugees, and identifies factors shaping these caregiving experiences, to inform the design and development of potentially appropriate ECD interventions.MethodsA qualitative formative study, which included 14 focus group discussions (n = 125 participants), and 13 key informant interviews was conducted between August and October 2018. Purposive sampling approaches were used to select a diverse range of respondents including caregivers of children below three years of age and stakeholders of Kenyan nationality and refugees. Data were analysed using a thematic approach and the Nurturing Care Framework was used as an interpretative lens.ResultsThere was a fusion of traditional, religious and modern practices in the care for young children, influenced by the caregivers’ culture, and financial disposition. There were mixed views/practices on nutrition for young children. For example, while there was recognition of the value for breastfeeding, working mothers, especially in the informal economy, found it a difficult practice. Stimulation through play was common, especially for older children, but gaps were identified in aspects such as reading, and storytelling in the home environment. Some barriers identified included the limited availability of a caregiver, insecurity, and confined space in the informal settlement, all of which made it difficult for children to engage in play activities. Physical and psychological forms of discipline were commonly mentioned, although few caregivers practiced and recognized the need for using non-violent approaches. Some overarching challenges for caregivers were unemployment or unstable sources of income, and, particularly for refugee caregivers, their legal status.ConclusionThese findings point to the interplay of various factors affecting optimal caregiving for young children in an urban informal settlement with Kenyans and refugees. Integrated ECD interventions are needed for such a mixed population, especially those that strive to anchor along caregivers’ social support system, co-designed together with community stakeholders, that ideally focus on parent skills training promoting nurturing care and economic empowerment.

Exploring sustainable livelihood options for COVID-impacted rural communities in Bangladesh

The COVID pandemic paralyzed all economy-generating sectors of Bangladesh, putting abrupt pressure on livelihood-making. In this study, two sequential surveys were conducted in the Mymensingh district of Bangladesh to gain a deep understanding of the impacts of COVID on job status and post-COVID job preference. The effectiveness of preferred occupations in livelihood resilience within the Sustainable Livelihood Approach (SLA) framework was also empirically analyzed and people-driven policies were recommended for sustaining livelihoods. About 35.96 % of respondents experienced short-to long-term unemployment and migrated to rural areas. The groups most severely affected were predominantly engaged in both formal and informal employment, characterized by lower levels of education, older age brackets, and predominantly female (45 out of 114). In the COVID situation, a large portion of respondents adopted agriculture (18.42 %), aquaculture (10.53 %), livestock farming (5.26 %), and small businesses (13.27 %) as their means of livelihood. However, for post-COVID preferences, respondents remained limited to only 13 job categories, considering aquaculture (22.02 %), agriculture (19.90 %), and livestock farming (26.22 %) as their most desired sectors. Considering all five capitals within the SLA framework, aquaculture and livestock farming were found to be more effective in bringing livelihood resilience within COVID-affected rural communities than agriculture. However, the greater advantages that aquaculture offers in achieving post-COVID livelihood led the authors to consider aquaculture as a decisive choice for policy recommendation. Therefore, the study proposed 28 people-oriented policies under four broad categories (financial support, technical assistance, marketing and logistics, and governance and institutional) in making sustainable livelihoods from aquaculture where financial support takes precedence as their top priority.

Informal Foreign Currency Market Rate Coordination and Remittance Flows

ABSTRACT An unintended consequence of remittance flows to economically troubled countries may be the exacerbation of parallel foreign currency market activities. Studying clandestine markets is often hobbled by a lack of data on informal market coordination mechanisms. This paper examines the impact of the sudden cessation of an informal foreign currency exchange reference rate in Zimbabwe on inward remittance flows and public attention to money transfer operators. While the reference rate existed, there was bi-directional feedback between black market currency rates and retail diaspora remittance flows, but not with the flows of non-governmental organizations (NGOs). The abolition of the informal reference rate did not stall retail diaspora remittance flows. NGO remittances reacted negatively to the ban, suggesting concerns with government policy. Online attention on money transfer operators increased after the reference rate’s cessation suggesting remitters shifted to formal channels. Accordingly, remittance costs reduced significantly.

Labor markets during COVID-19: gaps and challenges in Latin America.

The effects of the COVID-19 pandemic on Latin American labor markets continue to be quantified, to identify the social and economic impacts that this pandemic had, and to design more efficient public policies that would protect the most vulnerable groups. For this reason, the research question was as follows: what were the changes in the labor formality rates before and two years after the main contingency measures of the COVID-19 pandemic were implemented? Using data from Argentina, Bolivia, Chile, Colombia, Ecuador, Guatemala, Mexico, Peru, and Uruguay, the formality rate (τ) was analyzed, which was calculated using a weighted average between the formal employment rates of the number (i) of economic sectors (p) in a specific period (t). The results suggest that the weighted labor formality rate increased in the countries of the region. These changes in formality could be the result of greater capital accumulation, the integration of productive processes, the integration of commercialization processes, and differentiated fiscal stimuli (i.e., the intrasectoral aspect), but it was not due to the displacement of workers from highly informal economic sectors to more formalized sectors (i.e., the intersectoral component). The findings emphasized the precarious situation of women in the region, regardless of the country, particularly in Ecuador, Peru, Bolivia, and Argentina. These findings suggest the need to design public policies that reverse the current situation of the labor market and prevent future economic shocks, with special emphasis on the informal sector and women.

Innovative Social Groups in the Institutional Changes of the Russian Countryside

The article considers the formation of innovative social groups in the social structure of the Russian countryside, broadcasting the managerial style of thinking and lifestyle of an active subject of agricultural labor. The current model of the agricultural market was formed under the powerful institutional pressure of market reforms. These objective social processes transformed the mentality of rural residents, gave rise to various labor practices, including employment in the informal sector, from which innovative market models of behavior in the agricultural labor market emerged. Using the example of farms and rural entrepreneurs, innovative layers in the labor market are shown, the criteria for which are an increase in agricultural land, production growth using new technologies and digital equipment, access to export markets. The information base consists of data from large-scale panel studies of Rosstat 2011–2022 and the All-Russian agricultural censuses of 2006, 2016, 2021. Institutional changes in the agricultural labor market have been identified, within the framework of which innovative groups are being formed. The development of innovative technologies used in agriculture requires the involvement of highly qualified labor. However, there is an acute shortage of personnel in the agricultural labor market. The wages of a significant segment of jobs in the rural market do not ensure economic stability. The survival strategy remains the main factor in the socio-economic behavior of rural residents, which determines the employment of most of them in non-agricultural sectors in the agricultural labor market. The crisis of agricultural organizations and the arrival of high-tech capitalist forms of production in agriculture cause the migration of the rural population to cities. Despite significant government support for agriculture, there is a shortage of engineering specialties and skilled workers. All these processes hinder the emergence and development of new innovative groups in rural areas. The foreign experience of the functioning of an institutionalized system of information networks and consulting for farmers and small businesses in agriculture is also presented.

Factors shaping female migrants to informal sector in Bangladesh

Factors shaping female migrants to informal sector in Bangladesh

Fighting Inequality Through a Progressive Tax System for a Just Future in Tanzania

The problem of inequality is one of the economic problems that developing countries still face including Tanzania. This research therefore focuses on presenting the status and trends of inequality and the progressive tax system to pay for a just future in Tanzania. Research was anchored on the Ability-to-Pay Principle. The study was typically a desk research whereby it dwelled on analyzing and synthesizing large amounts of complex secondary data/information and literature concerning the issue of inequality in Tanzania. The target population for this study consists of secondary data sources, which included Peer-reviewed journal articles on taxation and inequality Government reports and taxation data from the Tanzania Revenue Authority (TRA). A purposive sampling methodology was employed to choose relevant studies and reports. This approach ascertained that only sources directly related to the research goals were included. The sample consisted of 20 sources, selected based on criteria such as: Year of publication. Content analysis was adopted in analyzing data to discover themes, patterns and trends related to progressive tax systems, income inequality reduction, and wealth distribution. Key variables such as tax policies, inequality measures (Gini coefficient), and wealth distribution patterns were extracted and analyzed to determine the effectiveness of progressive taxation in Tanzania. Findings revealed that while progressive taxes can be a remedy, the presence of large informal sectors, as in Tanzania, hinder their reach. Thus, while Tanzania’s progressive tax structure holds potential, more reforms are in need to boost implementation alongside widening the tax base. Further, the study concluded that there is little wealth-related taxation in Tanzania. Also, assets such as land ownership or financial assets are hardly/not taxed. The study recommended that given the situation, there is a great need to improve the tax collection with a focus on the existing tax base in Tanzania.