Informal Sector Research Articles

From mothers to daughters: gendered informality transfer in micro-entrepreneur women

ABSTRACT This article aims to examine the transfer of informality from mothers to daughters in a group of women who get financial help from a community aid and social development foundation. By administering a questionnaire to a cohort of 1156 female microentrepreneurs in Chile throughout 2021, the findings reveal that having a mother who was employed in the informal sector is linked to a 27% higher likelihood of being engaged in informal economic activities, compared to individuals whose mothers were part of the formal economy. Furthermore, compelling data is presented regarding the significance of education and the adverse impact of parenthood on women. The outcomes yield significant contributions in terms of theory, practice, and particularly public policy.

Informal Employment, the Tertiary Sector, and the Gross Domestic Product: A Structural Equations Model for the Mexican Economy

In Mexico, approximately 55% of the working population is employed informally, contributing 24.4% to the Gross Domestic Product (GDP) in 2022. This study analyzed the impact of wages, taxes, government spending, and unemployment on the informal economy of Mexico from 1980 to 2022, as well as its relationship with the tertiary sector’s contribution to the GDP. The methodology of the study was structural equation modeling. The findings of this study revealed that an increase in taxes, the unemployment rate, and the minimum wage in Mexico tends to be accompanied by a rise in informal employment. Finally, a unitary change in the latent variable informality affected the growth of the tertiary sector’s contribution to the GDP by 0.37 units.

From challenges to competencies: informal female entrepreneurship in emerging economies

PurposeInformal female entrepreneurs in emerging economies operate in challenging business environments. This research examines the competencies of informal female entrepreneurs (IFEs) to explore how they persist because and despite the unique set of challenges they face.Design/methodology/approachWe undertake a qualitative study focusing on IFE in the Indian context. Using the abilities–motivation–opportunity (AMO) framework as a theoretical lens, we interviewed 14 IFEs to gain insights into their entrepreneurial challenges and understand how they address the challenges.FindingsThe results demonstrate that IFEs are prone to various challenges around the individual level, business challenges on an operating and functional level and other challenges rooted in their business environment. Further, the study sheds light on the competencies of IFEs on three fronts, namely, ability-enhancing competencies, including – technical skills, problem solving, communication and adaptability; motivation-enhancing competencies, including – self-motivation, resilience and optimism and lastly, opportunity-enhancing competencies, including – local-centric approach, networking and resourcefulness.Research limitations/implicationsThe study highlights the nuanced settings of informal female entrepreneurship in an emerging economy context. By highlighting the challenges and competency interplay, our study opens novel avenues for the interrelationships to be studied in further detail.Originality/valueOur study provides close insight into the everyday challenges of IFEs operating in informal economies. Their competencies and perseverance-related attributes contribute to the mainstream entrepreneurship literature, as these entrepreneurs exhibit unique competencies that allow them to thrive in challenging contextual settings. Their willingness to learn new skills, opportunity recognition, motivation and adaptability skills contribute to a better understanding of the phenomenon of informal female entrepreneurship.

Decent Work Agenda in Botswana: Strides and Challenges

The Decent Work Agenda (DWA) in Botswana provides a comprehensive framework designed to promote fair labour practices, enhance worker rights, and foster sustainable economic growth. This article analyses the progress achieved in executing the decent work agenda, focusing on enhancements in labour standards, gender equality and inclusion, and capacity building and training. Furthermore, it illustrates the ongoing challenges that delay progress, including elevated unemployment rates, informal employment, and migration and labour rights. The analysis utilises multiple policy recommendations, highlighting the necessity of reinforcing labour rights and protections, advancing skills development, and improving stakeholder involvement in policy formulation. Addressing these challenges and leveraging existing successes will enable Botswana to develop a more inclusive labour market that adheres to the principles of decent work, thereby enhancing the nation's long-term economic sustainability and social equity. The findings highlight the significance of a collaborative approach among government, civil society, and the private sector to effectively implement the decent work agenda, ensuring it yields measurable benefits for all workers in Botswana.

Digital Labour Platforms in the Italian Domestic Sector: Approaching (In)Formalisation Processes from the Other Way Round

In this exploratory study, we investigate the effects of digital labour platforms (DLPs) on cleaning workers. The prevalence of informality in this sector leads us to suggest analysing workers’ experiences by combining the literature on DLPs with that on the informal economy. Through in-depth interviews with cleaners in Milan and Rome, as well as DLP representatives, the article highlights on one hand, how DLPs affect informal workers and their conditions, and, on the other hand, how workers represent their work and what meanings they associate with the terms formal and informal in the location-based platform economy. The study shows that DLPs seem to play a limited role in the formalisation of work, revealing new forms of hybridisation between formal and informal labour. The use of DLPs also results in increasingly confusing perceptions of what constitutes formal (or regular) and informal work.

Food Security Achievement through Women Empowerment: A Study of Informal Sector in Lahore

Background: Women empowerment (WE) in food security is one of the global issues faced by women in all the countries of the world. Achievement of zero-hunger goal of Sustainable Development Goals in 2030 (SDG) still seems to be unachievable because of this food insecurity. This research aims to study the achievement of food security by enhancing WE in the informal sector in Lahore, Pakistan. Moreover, the analysis goals are to determine the contribution of microcredit facilities and management skills in the enhancement of WE which improves food security. Method: This study was quantitative and descriptive. Using a primary survey questionnaire on cross-sectional data source by simple random sampling, 495 women borrowers in the informal sector of Lahore, Pakistan were investigated. Data analysis was done using SMART PLS3. Results: The results of the study revealed a positive relationship between WE and food security through the active participation of women in production decisions. The utilization of resources within the households is strengthened by familial rights, social support, and the removal of gender disparity. Conclusion: Women's capacity to contribute more to the daily household expenditure is increased by the higher income, and eventually, it increases their empowerment and food security.

Border fortification and legibility: Evidence from Afghanistan

AbstractStates often fortify their borders against militant threats. How do these efforts shape civilian welfare and perceptions in borderland communities? I conceptualize border fortification as a legibility‐building endeavor. By bolstering state reach in areas of weak historical penetration, fortification enhances the government's capacity for monitoring, administration, and control. Yet, expanding state authority also disrupts traditional cross‐border markets. A trade‐off between security and corruption emerges in consequence. I provide evidence for this theory in a difference‐in‐differences framework, combining administrative records on violence and representative data from a NATO‐commissioned survey fielded across Afghanistan. Fortification facilitates government information‐collection, improving security provision and fostering civilian reliance on state forces. Enhanced state capacity is countervailed by negative economic impacts. By disturbing the informal borderland economy, fortification fuels criminalization and local opposition. Civilians rely on illicit economic entrepreneurs to sustain traditional market access. Higher smuggling rents fuel official corruption and bribe‐taking. The findings point to a key dilemma inherent in border fortification strategies.

A Systematic Review of the Trends, Effects, and Deterrents of Collective Marketing Participation Among Smallholder Farmers in Sub-Saharan Africa

Smallholder farmers’ participation in collective marketing is essential for the growth of smallholder farming businesses and the sustainability of their livelihoods. Collective marketing provides smallholder farmers with increased opportunities to scale up market access and participation. Given the challenges that the majority of smallholder farmers still face regarding market access and participation, this review was conducted to explore the trends and effects of collective marketing participation, as well as the barriers to participation among smallholder farmers in Sub-Saharan Africa (SSA). The results show that collective marketing has a high potential to give smallholder farmers access to both formal and informal market participation, as well as recognition by public and private support structures. To improve collective marketing participation among SSA countries, more focused and content-specific strategies and interventions are needed to address the complex socio-economic and structural barriers that limit smallholder farmers’ ability to fully benefit from collective marketing initiatives across the region.

Consumer preference and willingness-to-pay for formal recycling of electric vehicle batteries: a discrete choice experiment study

The burgeoning electric vehicle (EV) market poses a substantial challenge to battery recycling systems, yet understanding EV battery recycling behavior from the demand side remains limited. Previous studies have analyzed perceptual or attitudinal factors, neglecting the observable attributes of EV battery recycling. To this end, we proposed a discrete choice model to investigate the differences between formal and informal recycling behaviors, identifying consumer preferences and willingness to pay. By analyzing 1190 sample data collected from Chongqing, China, we find that: (1) The formal recycling market exhibits greater sensitivity to prices compared to the informal recycling market. (2) The formal recycling market favors recycling by EV battery producers, whereas the informal recycling market shows the least preference for recycling by automobile producers. (3) Door-to-door recycling services are the most effective in facilitating the transition from informal to formal recycling markets for EV batteries. (4) Capacity subsidy policies outperform one-time fixed subsidy policies in incentivizing formal recycling. (5) The formal recycling market for EV batteries necessitates "traceability to the recycling outlet", as opposed to being untraceable. (6) The high-awareness group exhibits greater sensitivity to government policies compared to those with lower environmental concerns and less knowledge of EV battery recycling.

Informality as global capitalism's unconscious

Drawing on the burgeoning field of Global Libidinal Economy, this article argues that informality (i.e., the informal economy) is global capitalism's unconscious, both hiding and revealing the latter's instability and shadowy, indeed “dirty” if not “dangerous,” underside. On the basis of a fieldwork-based case study in Recife, Brazil, we bring out informality's exploitative dimensions—unspoken yet crucial to the functioning of capitalist markets; as well as its spontaneous and creative sides, which like the “return of the repressed,” act as disturbance and potential threat to these markets. Conceptualizing informality in this (psychoanalytic) way helps foreground the antagonisms upon which capitalism is founded, forebodingly betraying themselves despite attempts to suppress and gentrify them.

Examining Social Insurance Perceptions and Attitudes among Zimbabwean Informal Sector Workers: A Study on Providing Social Protection to the Disenfranchised

Examining Social Insurance Perceptions and Attitudes among Zimbabwean Informal Sector Workers: A Study on Providing Social Protection to the Disenfranchised

How globalisation impacted on small and informal businesses in Zimbabwe

ABSTRACT This paper explores the impacts of globalisation on small and informal businesses in Zimbabwe. The Zimbabwean economy has over the last two decades been dependent on small and informal businesses after the country went through a shattering economic crisis that witnessed the collapse of its once flourishing industry. In the wake of this failing formal economy, small informal businesses emerged as a strong alternative economy that has created employment and livelihoods for most of the urban populace. However, in a world that is increasingly contracting and fast becoming one, globalisation has had its impact on these businesses. This paper uses data collected in Norton and Harare through in-depth interviews and ethnographic observations as well as secondary sources to explore and understand the finer details of how the phenomenon has affected small informal businesses in Zimbabwe both positively and negatively over time.

Can intergenerational relationships mitigate digital exclusion among China’s elderly population?

ABSTRACT In the burgeoning grey economy, the elderly have been widely praised for their digital readiness dividends. However, there remains a significant gap in the literature regarding solutions to the critical issue of digital exclusion faced by the elderly. This study utilizes the microdata from three waves of the China Family Panel Studies (CFPS) in 2016, 2018, and 2020 to explore how intergenerational relationships influence the digital exclusion of older adults and identify the mechanisms. The findings reveal that strong intergenerational bonds significantly narrow the digital divide for the elderly. The analysis highlights that such relationships have a more pronounced impact on mitigating elderly digital exclusion among early-aged parents, males, residents of rural areas, and families where parents and offsprings cohabit. The mechanisms through which these relationships exert their influence include promoting intergenerational support exchanges, providing digital guidance from children to parents, and enhancing the elderly’s acceptance of digital technology. Furthermore, this paper employs the ‘one-child policy’ as a quasi-natural experiment to examine the moderating role. The findings underscore the value of nurturing parent-child bonds in reducing digital exclusion among the elderly, offering strategic insights for addressing this issue in societies experiencing both ageing populations and declines in birth rates.

Using AI in the informal currency market: evidence from Cuba

ABSTRACT This article explains the various steps of a novel methodology designed to analyse the informal currency market and calculate a parallel exchange rate (ER). We utilize artificial intelligence algorithms for Natural Language Processing to extract data from social network groups and classified websites. The methodology has been implemented since 2021 amidst Cuba’s complex financial and political landscape. Given that the official exchange rate remains fixed and overvalued, the calculated ER has become vital for assessing the real-time effects of regulatory changes, economic shocks, and policies. We conduct a statistical and econometric analysis using vector autoregressive models and spillover indexes to validate the economic and financial consistency of the informal market’s time series.

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.

Comprehensive Bibliometric Analysis and Systematic Review of Two Decades of Food Vendors Study: Deciphering the Dynamics of Food Vendor Research

This study examines food vendor research over a two-decade period (2005-2023), using both bibliometric and systematic review approaches. Using data from the Scopus database with 421 articles, the study shows a significant increase in research production, with a focus on food security, consumer behavior, and the influence of COVID-19. The bibliometric analysis reveals major study issues, such as food safety, sustainability, and the informal sector, while a systematic examination of the top 20 most-cited publications provides additional insight into the research landscape. This review emphasizes the need of include time in food accessibility studies, the need for a more nuanced understanding of food deserts, and the increased interest in organic vegetable marketing and insect eating. Also this is the first article which completely drafted in the perspective of food vendors. The study concludes by identifying limitations and suggesting future research directions, emphasizing the importance of an interdisciplinary approach, incorporating qualitative methods, focusing on specific regions, investigating the impact of the internet, and delving deeper into purchasing habits, sustainability, and socioeconomic impacts. This thorough analysis lays the groundwork for future research, encouraging the creation of more fair, sustainable, and resilient food systems.

Bridging India's Financial Divide: The Power of Artificial Intelligence and Machine Learning

Artificial Intelligence (AI) and Machine Learning (ML) are transforming India's financial sector, enhancing decision-making, risk assessment, and personalized services. They extend financial services to underserved populations through scalable solutions like digital lending and mobile banking, fostering financial inclusion and bridging urban-rural gaps. Notable progress has been made through initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), which opened over 53 crore accounts by August 2024. However, challenges such as low literacy rates, inadequate digital infrastructure, and a large informal economy persist. AI and ML address financial inclusion gaps by automating KYC processes and improving onboarding through facial recognition and identity verification. Initiatives like Aadhaar provide digital identities, enhancing access to banking. ML algorithms expand financial access by analyzing alternative data for credit scoring. Companies like Lenddo and Tala leverage ML for loans, and AI revolutionizes fraud detection by analyzing transaction data in real-time. AI integration with digital payment platforms like UPI has transformed India's financial ecosystem, processing over 15 billion transactions monthly by August 2024 (NPCI). AI-driven micro-lending platforms like Capital Float and Aye Finance address a $380 billion credit gap (BCG) by assessing creditworthiness using alternative data. AI-driven chatbots and financial products tailored to rural customers improve financial literacy and services. In agricultural finance, AI introduces lending models and enhances crop insurance through satellite data and weather patterns. Programs like PMFBY and companies like Skymet use AI for faster claims processing. AI-driven solutions in RegTech simplify compliance and improve fraud detection. Fintech collaborations and government initiatives like IndiaStack, Aadhaar, and DigiLocker promote financial inclusion. Overcoming barriers like infrastructure challenges, data privacy concerns, and AI bias is essential for leveraging AI to provide equitable financial services in India. The constructive interaction between AI and blockchain further enhances financial inclusion, creating a secure, transparent ecosystem that drives economic growth and social well-being.

Factors associated with household willingness to pay for Universal Health Coverage in Cameroon: a nationwide cross-sectional analysis

BackgroundSustained financing for Universal Health Coverage (UHC) has been a concern for the Cameroon government. Household contributions have been considered as a financing mechanism, but this raises concerns on the willingness of households to pay for UHC. The current study assessed factors associated with the willingness to pay (WTP) for UHC in Cameroon.MethodsCommunity based, cross-sectional analysis of data from households (selected via multi-stage, randomized, cluster sampling) across all ten regions of Cameroon, during July 2020. Factors associated with WTP for UHC were determined using a multinominal logistic regression model, tested at varying significance levels (1%, 5%, and 10%) to enhance its ability to detect meaningful and practical value associations.ResultsOverall, 5,014 households were surveyed, 64.3% and 35.6% from rural and urban areas respectively. Household heads were 40.2 ± 10.1 years old and mostly male (60.6%). Most surveyed households (72%) were willing to contribute for UHC. Amongst these willing households, WTP varied with the sex (females opted for lower payments) and educational level (those with ≥ high school education opted for contributions ≥ US$ 165.6 annually, p < 0.01) of the household head. WTP also varied proportionally with household income and was influenced by the sector of activity (formal secondary/tertiary and informal sector workers opted for contributions > US$ 165.6 annually, p < 0.01) of the household head. Other factors affecting WTP included household size (households with ≥ 13 persons opted for contributions ≥ US$ 165.6, p < 0.01) and the age of the household head (those ≥ 55 years opted for higher contributions; US$ 33.1–82.6, p < 0.01). WTP varied positively with knowledge on UHC and affiliation to a health insurance scheme. Household who did not resort to self-medication/prayers when in need of healthcare services opted for higher contributions (US$ 82.6– 165.6, p < 0.01).ConclusionUHC implementation in Cameroon will require that factors shown here-in to influence WTP be carefully considered. Modifiable factors such as self-medication/prayers and poor knowledge on UHC, underlines the need for greater sensitization on UHC. Given the high WTP from the informal sector, characterization of the sector could go a long way to increase the financial envelope allocated for UHC.

Pedals and throttles: Ride‐along experimental journeys with Hanoi's cyclo and motorbike taxi drivers

AbstractIn this article, we analyse the effectiveness of ride‐alongs, a specific mobile method, to better understand the daily realities of informal mobile livelihoods in Hanoi, Vietnam. The field of mobile methods has seen significant advances both within and beyond geography. Yet, there is still an absence of literature comparing the benefits and drawbacks of using a consistent mobile method across different forms of mobility in the same context, such as pedal‐powered versus motorised transport. Additionally, studies specifically addressing the daily experiences of informal cyclo (trishaw) drivers in Vietnam are scarce. Our paper aims to fill these gaps by evaluating the effectiveness of ride‐along interviews in understanding the mobility and livelihood challenges faced by informal cyclo and motorbike taxi (xe ôm) drivers in Hanoi, who navigate the city's dense and chaotic traffic to earn a living. Ride‐alongs provide a unique perspective on the city's informal transportation sector, uncovering new insights into the nuanced micro‐mobilities and rapid decision‐making required of these drivers. Cyclo drivers navigate Hanoi's streets with considerations for tourist appeal, physical exertion, and police avoidance. Meanwhile, xe ôm drivers manoeuvre through alleyways and roads, balancing efficiency, speed, and passenger demands. Both groups are concerned with circumventing often‐corrupt police, managing local traffic conditions, and adapting to changing weather patterns. This comparative study reveals the benefits and insights gained from ride‐along interviews with mobile informal economy workers, highlighting the similarities and differences in the choices and tactics these drivers employ. The method allows for a deeper understanding of how vehicle type, physical demands, and the socio‐political environment shape the split‐second decisions these drivers must make to maintain their livelihoods on Hanoi's streets.

Envisaging Just Energy Transitions in Jharkhand: (Re)Interrogating the Politico-Economic Entanglements of the Private Regimes of Extraction and Accumulation

One of the major concerns around in coal mining and extractive regimes more generally in India has been the role of the private sector in managing precarious labor environments through intermediation, which has deep political roots. While the state–corporate nexus is well established in the coal mining sector, we observe here that an important part of sustaining productivity and profitability from mining has been the organized intermediation of private subcontractors who work between formal and informal coal economies and between coal companies and communities. This paper seeks to historically situate the emergence of these private entities and the nature of competition between them. Additionally, it elucidates how political machinery is deployed to manage such conflicts and competition. The paper argues that while competition among different private entities occurs at the profit level, the internal conflict and its efficient political management contribute to seamless accumulation—both primitive accumulation and surplus value accumulation—within the coal economies by preventing organized labor resistance. It concludes by arguing that without a nuanced understanding of the politics of the “private” within the coal economy and its accumulative regimes, any attempt at Just Transitions will fail to comprehend the multifaceted nature of exploitation, co-option, and negotiation within such regimes.