Informal Sector Research Articles

Re-Examining the Narrative of Structural Transformation: Insights from India’s Development Experience

The narrative of structural transformation, based on the experience of global North, posits that the process of development involves gradual ‘modernisation’ of the overall structure of the economy, where the traditional/low-productivity sectors give way to and support the modern/high-productivity sectors. However, much of the global South has not been able to experience this process along the anticipated lines, as a significant proportion of their workforce is still engaged in the low-productivity agriculture and non-agriculture informal sectors for their livelihood. We highlight that the dominant narrative does not take into account the importance of specific historical conditions, particularly the role of colonialism, that facilitated the process of structural transformation in the global North. The altered structural conditions in the post-colonial era, both at global and domestic level, question the possibilities of a similar process unfolding in the global South. In this regard, we analyse India’s development experience, both at macro and micro level, focusing on two villages of the Indian state of Tamil Nadu, surveyed in 1994 and later in 2018. We illustrate that the process of labour and employment transition across sectors is highly complex and heterogeneous. Rather than being driven solely by productivity growth, the nature and direction of these changes are characterised by economic distress. We argue that the prevailing narrative, which presents a linear understanding focused on productivity differentials across sectors, is inadequate to understand the nature of this transition in the South. Instead, the process needs to be understood in the particular socio-economic and ecological context specific to a given space and time.

Informal employment: research and evaluation methods

The article examines various approaches to studying new forms of informal employment, including unofficial employment and entrepreneurial activities. The main goal of the work is to explore diverse methods that can be applied to achieve a more accurate assessment of informal employment and the contribution of the informal sector to the economy, including its impact on economic and social indicators. During the COVID and post-COVID periods, the global financial crisis intensified, necessitating an examination of the current situation not only in the global labor market but also in Kazakhstan. The labor market has always been and will remain sensitive to the state of the economy, significantly affecting both employers and employees. The strengths and weaknesses of applying a range of methods, identifying methodological approaches to the application and systematization of tools to improve the quality of work in the informal sector were analysed. Problems connected with evaluation of informal employment were discussed such as assess to different types of data, identifying boundaries of informal sector and different methodological limitations. The conclusions and obtained results can form a scientific basis for further research and assessment of informal employment, contributing to the adoption of more effective measures at the state level to support the informal sector of the economy in various countries, including our republic. To obtain more accurate results in assessing the volumes of informal employment, it is necessary to use a combination of existing scientific and practical methods, taking into account the specificities of each country, undoubtedly enhancing the efficiency and accuracy of the results obtained.

Psychological empowerment and job burnout in Chinese kindergarten teachers: The mediating effect of occupational stress

We explored the role of occupational stress in the relationship between psychological empowerment and job burnout in kindergarten teachers. Chinese female kindergarten teachers (n = 243) were participants (mean age = 28.2 years, SD = 5.08 years; specialist and below = 64.6%, formal work systems = 37.9%). They completed surveys on psychological empowerment, occupational stress, and job burnout. Path analysis findings suggested that higher psychological empowerment was associated with lower job burnout. Lower occupational stress mediated the relationship between psychological empowerment and job burnout so that the teachers with a sense of psychological empowerment were likely to report less job burnout. The higher the psychological empowerment, the lower the occupational stress and lower job burnout relationship held for older age teachers and those with undergraduate degree or a higher level of education and formal employment. Kindergarten teachers should be supported in improving their psychological empowerment to reduce occupational stress, and thus, limiting their risk for job burnout.

Shadow banking, macroprudential regulation and redistributional effects*

ABSTRACT This paper studies the implications of increasing the size of the shadow banking sector for economic activity, financial stability, and welfare. I consider a DSGE model in which lending can come from two different sources; a formal bank or private lending. Banking regulation, in the form of capital requirements, only applies to the formal banking sector. Private lenders represent the shadow banking system. Results show that an increase in shadow banking leads to a higher amount of credit in the economy, which in turn implies higher consumption by borrowers. However, after a certain threshold, a large proportion of shadow banking is welfare decreasing. Moreover, the presence of an unregulated banking sector can lead to unintended effects of macroprudential policy. That is, stricter regulation in the traditional banking sector by the authorities may result in an increase in credit flows to those banks with lower regulatory levels, especially when this regulation comes from borrower-based instruments. Thus, macroprudential authorities should take into account these redistributional effects of shadow banking when considering their regulatory perimeter.

Informal employment in the health sector: Examining gender disparities

Informal employment in the health sector: Examining gender disparities

Challenges of employing unformalized skills: Recognizing and leveraging informal expertise for national development in Tanzania

This paper explores the challenges and implications of informal skills acquisition in Tanzania and its impact on national development. Through two case studies—one focusing on a driving class and the other on an electrical technician—it highlights the tension between formal certification and practical experience. The findings reveal that informal skilled laborers, while highly proficient, face significant barriers to employment, market competition, and project tendering due to the absence of formal recognition and certification. Despite their lack of formal qualifications, these workers contribute meaningfully to their families, communities, and the national economy. The study underscores the critical gap in valuing informal expertise relative to formal qualifications, and it advocates for the re-evaluation of the certification system to better recognize and leverage informal skills. The paper argues that integrating informal skills into the formal economy is crucial for inclusive national development. It calls for a Recognition of Prior Learning (RPL) system to validate experiential learning and create alternative, affordable certification pathways. This approach would not only level the playing field for informal workers but also enhance their ability to compete in national projects alongside formally educated professionals. By acknowledging and supporting informal expertise, Tanzania can build a more robust, versatile workforce that is better equipped to meet the demands of various industries, ultimately driving sustainable national development.

ANALYSIS OF THE GEOGRAPHICAL FACTORS INFLUENCING CHOICE OF INFORMAL FISH TRADE ROUTE AND DESTINATION BY FISH TRADERS BETWEEN MALAWI AND NEIGHBORING COUNTRIES

Choice of trade route and destination by cross border traders is an important decision in today’s increasingly cross border trade of products including fish. The current study examined the geographical factors influencing choice of informal trade route and destination by fish traders. Both qualitative and quantitative approaches were adopted for the study. These included semi-structured questionnaires through personal interviews and key informant interviews with fish border inspectors. Data was analyzed through various techniques for trader’s choice and destination. Specifically, principal component analysis and spearman correlation, and Huff’s gravity model were used to identify significant factors influencing choice of trade route and destination, and market attractiveness, respectively. Fish traders bypass official border posts using informal routes connecting the main route before and after the border post. Despite attempts and awareness about formal trade, stringent regulations forced fish traders to use informal trade routes. However, investigations into choice of trade routes and destination found that route distance, presence of alternative destination, mode of transport, demand of the fish product, and personal safety and risks were the factors influencing choice of both trade route and destination by informal fish traders. This geographic analysis provides a basis for addressing challenges in informal cross border trade in Malawi. It is recommended that strategic efforts and investments should be made in the development of transportation infrastructure, such as roads and railways to improve connectivity between secondary routes and one stop border post. The government should also intensify awareness initiatives on COMESA simplified trade regime (STR) to encourage informal traders to transition to the formal sector through use of formal routes.

Taxation in the context of high informality: Conceptual challenges and evidence from Sub‐Saharan Africa

AbstractThe terms ‘informal sector’ and ‘shadow economy’ are in vogue but remain conceptually fuzzy in what they measure or mean. They are used in tax research and policy but with many assumptions, leading to poorly designed policies that lead to further immiseration of those who derive their livelihoods informally. Focusing on Sub‐Saharan Africa, I critically interrogate the current conceptualisation of informal economic activities and how they are thought to relate to taxation. Critically, I use existing estimates of informality and taxation data to demonstrate the need to cast the tax net wider than the usual bias toward visible subsistence informality. I show that informality is not novel among many factors negatively associated with tax revenue mobilisation, especially in its broader historical context. I then show that technology adoption can play a role in mitigating taxation challenges associated with informality. However, the role of technology remains limited if not embedded in and supported by improving government institutions, which, though protracted, show higher outcomes on taxation. Since the terms ‘informal sector’ and ‘shadow economy’ describe diverse economic activities, conceptual diversity is not necessarily problematic, but precision is necessary when these terms are brought to tax research, including frank discussions on data quality issues and when the concepts need to be generalised or restricted to context.

A Comparative Study of Different Unorganized Sectors’ Workers in India to Identify Musculoskeletal Disorder Prevalence through Empirical Survey and Deep Learning Methods

Background:: Musculoskeletal disorders (MSDs) are a group of non-fatal injuries that can occur as a result of various repetitive workplace activities, mainly in unorganized sectors. Workers who engage in highly repetitive activities involving constant hand effort, localized mechanical pressure, and vibration are more prone to developing these disorders. Objective:: The objective of this research was to determine the prevalence of MSDs among workers in various unorganized sectors in India who perform hand-intensive occupations. Method:: A cross-sectional study was conducted, involving 340 workers from diverse groups such as sugarcane farmers, footwear industry workers, and tarpaulin weavers, to accomplish this goal. Data for the survey was collected using a questionnaire. Additionally, a comprehensive time study and a deep learning-based posture detection study were conducted on the different activities performed during the workers' occupational tasks. The chi-square test was used to assess the relationship between discomfort and work repetitiveness. Result:: The data analysis revealed that the working activities (especially cutting/harvesting, rubber cutting, etc.) of unorganized sector workers were repetitive, with more than half of each activity’s work cycle involving a similar usage pattern. Furthermore, a significant association was observed between the level of discomfort and work repetitiveness among workers in different sectors (sugarcane farmers: p < 0.01, footwear industry workers: p < 0.05, tarpaulin weavers: p < 0.05). Consequently, it can be concluded that prolonged occupational activities involving repetitive and prolonged standing may contribute to the occurrence of MSDs. Conclusion:: Ergonomic interventions/modifications in the form of patent work will be necessary to prevent these issues in the near future.

Social Exclusion and Urbanization in Hanoi Focusing on Educational and Employment Opportunities for Poor Residents

This paper explores the relationship between social exclusion and urbanization in Hanoi, Vietnam, with a focus on the educational and employment opportunities for the city’s poorest residents. The rapid urbanization of Hanoi, driven by economic reforms and rural-to-urban migration, has resulted in significant economic growth. However, it has also exacerbated social inequalities, particularly for poor residents and migrants living in peripheral areas. The study examines the challenges of educational exclusion, such as limited access to quality education due to overcrowded schools, hidden costs, and disparities in resources between wealthy and poor areas. It also addresses employment barriers, including the concentration of poor residents in the informal sector, a lack of vocational training, and social discrimination. Government policies and social programs aimed at addressing these issues, such as scholarships, vocational training, and microfinance initiatives, are analyzed for their effectiveness. The findings suggest that while some progress has been made, significant gaps remain in ensuring equitable access to education and employment for marginalized communities. The paper concludes by emphasizing the need for comprehensive and inclusive policy interventions to mitigate social exclusion in Hanoi and ensure that all residents benefit from the city’s urbanization.

COVID-19’S IMPACT ON FOOD STALL WORKERS: NIGHT MARKETS’ RESILIENCE IN PENANG, MALAYSIA

The COVID-19 pandemic has left an enduring mark on Southeast Asia, with lasting repercussions on financial markets, employment, and gender equality in the workplace. Various activities were halted in order to curb the virus’s spread, which dealt a severe blow to Malaysia’s thriving economy. The informal sector, a cornerstone of the Asia-Pacific service industry, felt these effects acutely, as it heavily relies on informal workers. Given that more than three quarters of Malaysia’s service sector comprises informal workers, the country’s economic recovery is now significantly reliant on this workforce. Considering the contribution of the informal sector to Malaysia’s food market, this study aims to explore the impact of social shocks and economic crises on the resilience of informal workers during the COVID-19 pandemic. Using a multistage probability sampling method, the study employed a questionnaire survey involving Penang’s food stalls in night markets. Findings reveal significant variations in workers’ lifestyles, attitudes, and family dynamics. Gender-related factors also exert a substantial influence on their behavior, attitudes, and engagement levels. While many studies have examined night markets as tourism spots in terms of how to increase sales or attract visitors, this study is among the first to focus on the vendors themselves, exploring the impact of COVID-19 on food stalls as an unseen vulnerable community.

Financial measures and banking crisis: New evidence

This paper assesses the power of measures related to the financial cycle to predict the probability of a banking crisis. Data are at a yearly frequency, span the period 1980–2020, and cover 196 countries. The standardized cumulative credit-to-GDP ratio is important for advanced economies and to a lesser extent for low-income developing countries, but it is not for emerging economies. IMF and World Bank policymakers and analysts need to take a more comprehensive approach to evaluating financial stability and systemic vulnerabilities in emerging economies and low-income developing countries because of their financial institutions’ deep informal banking sector.

Pathways for Strengthening Lived Experience Leadership for Transformative Systems Change: Reflections on Research and Collective Change Strategies.

The Activating Lived Experience Leadership (ALEL) project was a South Australian participatory action research project that aimed to improve the ways lived experience is recognised, valued and integrated across mental health and social sector systems. ALEL was completed during 2019-2021, where it engaged 182 participants in generating community action and research knowledge. Our paper discusses the project's processes of building a collective partnership among lived experience leaders and other leaders from within the sector, so that the actions and strategies identified through research could be implemented by systems-level impact. We describe the collaborative process and key learnings that resulted in eight key action areas for transformative systems change in South Australia. The project invited a diverse range of self-identified lived experience and other leaders to be involved in a PAR process featuring formal qualitative research (focus groups, surveys and interviews) as well as community development activities (leaders' summit meetings, consultations, training and community of practice meetings). These processes were used to help us describe the purpose, achievements and potential of lived experience leadership. Project priorities and systems-level analysis was also undertaken with lived experience sector leaders and project advisors across two leaders' summit meetings, integrating research outcomes with sector planning to define high-level actions and a vision for transformational change. Participatory action research as informed by systems change and collective impact strategies assisted the project to generate detailed findings about the experiences and complexities of lived experience leadership, and collective responses of how systems could better support, be accountable to and leverage lived experience perspectives, experience and peer-work approaches. Systems change to define, value and embed lived experience leadership benefits from collective efforts in both formal research and sector development activities. These can be used to generate foundational understandings and guidance for working together in genuine ways for transforming mental health and social sector systems, experience and outcomes. Members of lived experience communities codesigned the project, and contributed to project governance and the development of all findings and project reports.

Além da costa: o papel da Seenemar na economia azul do Rio de Janeiro

This study analyzes the strategy of the State Secretary of Energy and Sea Economy (SEENEMAR) in promoting the blue economy in the State of Rio de Janeiro (ERJ), focusing on environmental and social sustainability. The analysis of projects, such as the Fishery Naval Hub and offshore wind energy, reveals significant contributions to economic growth, environmental sustainability, and social inclusion. SEENEMAR has shown effectiveness in job creation, attracting investments, and decarbonization, as well as promoting social inclusion through training programs and valuing sea gastronomy. However, the lack of a formal blue economy definition at the federal level may limit the expansion of these initiatives. This study suggests that the continuity and success of SEENEMAR’s policies depend on constant monitoring and adjustments based on empirical data.

Comparative analysis of the effectiveness and efficiency of formal and informal waste collectors in urban waste management system

Effective and efficient waste collection and management is critical to achieving sustainable cities and communities, public health, and sustainable development. This notwithstanding, the rapid and ever-increasing rate of urban waste generation in developing countries has led to the emergence of a dual system of formal and informal waste collection schemes with unclear effectiveness and efficiency. This study compared the operational effectiveness and efficiency of formal and informal waste collectors in the urban waste management system in Ghana. A case study research design is employed with a focus on households and waste collectors in the Suame Municipality in the Ashanti of Ghana. Data were collected through questionnaire administration and interviews, waste quantification, and field measurements. The findings reveal that 61.5 % of households rely on informal waste collectors, 35 % on formal waste collectors and 3.5 % use indiscriminate dumping. The formal waste collectors were more effective serving 111 households and collecting 11.239 tonnes of waste per trip but utilises 62 % of their collection capacity while the informal sector collects 846.67 kg per trip and uses 106 % of their collection capacity. Formal waste collectors were also more efficient with the use of time. The study unveils an opportunity to enhance effectiveness and efficiency in municipal waste management in low- and middle-income countries with reforms and practices that build upon existing waste management practices and integrate informal waste collectors into formal waste management systems.

Solid waste characterization in the slum areas of Bagmati River—A case of Kathmandu, Nepal

Solid waste management (SWM) is a challenging environmental issue globally, with developing nations experiencing considerable difficulties in its efficient and effective implementation. Urban slum areas within these regions, particularly, have been reported to face unique challenges in SWM due to a combination of factors, including the low socio-economic status of residents, high population density, inadequate infrastructure, and a thriving informal economy. Despite these critical concerns, most SWM research in Nepal has concentrated on major cities and tourist hotspots. As a result, the condition of SWM in urban slum areas, typically found along the banks of major rivers in Nepal, remains a critical yet neglected aspect in research and policy discussions. This study, therefore, aims to evaluate SWM in the densely populated urban slum areas situated along the Bagmati River, a key river system in Kathmandu, the capital of Nepal. Four major slum locations within the central metropolitan area of Kathmandu—Sinamangal, Thapathali, Teku, and Balkhu—were selected for the study, and systematic random sampling and characterization of household solid waste was conducted. The results reveal that the average household solid waste generation rates in the four study sites were 155.32 g capita−1 d−1, 124.69 g capita−1 d−1, 149.9 g capita−1 d−1, and 218.44 g capita−1 d−1, respectively. Organic wastes was the most prevalent type, comprising 63.34% of the total waste, followed by paper and paper products (13.72%), plastics (12.15%), dirt and construction debris (5.57%), glass (4.31%), and other wastes (0.91%). Qualitative data from the survey revealed that although municipal waste management programs exist, awareness and participation among residents were limited. As a result, many households ended up managing their waste on their own, often in an unscientific manner polluting the river water in the vicinity. The study offers critical insights for policymakers, operators, and regulators in addressing the growing challenges of SWM. Findings are expected to aid in the sustainable management of solid waste along the river basin in central urban regions of the capital city. Under Nepal's new federal governance system, provincial and local governments are recommended to collaborate with all stakeholders, including households, to develop comprehensive, multimodal SWM strategies that also address the needs of slum areas.

Housing infrastructure and women in care: COVID-19 experiences from urban informal settlements of Khulna, Bangladesh

Urban informal settlements in the Global South, home to over a billion people, face significant challenges due to limited space and inadequate Water, Sanitation, and Hygiene (WASH) and Solid Waste Management (SWM) infrastructure. These deficiencies significantly impact women's ‘triple care role’—reproductive, productive, and community caregiving responsibilities—within their families, society, and the economy, exacerbated by the COVID-19 pandemic. This study aimed to explore how inadequate infrastructure in three informal settlements in Khulna, Bangladesh, influenced women's caregiving roles during the pandemic and their responses. Through semi-structured interviews with 24 women community leaders, who served as front-line workers during COVID-19, and supporting fieldwork, we discovered that women adapted by modifying their habits and the spatial layouts of their homes for isolation. Although some improvements were noted in WASH and SWM conditions, significant challenges remained, particularly in temporary housing, household adaptability, and reproductive responsibilities Despite facing informal employment, financial constraints, and food insecurity, women showed resilience through leadership, socio-political networking, and community initiatives. This study underscores the urgent need for adaptive infrastructure planning to improve living conditions in informal settlements, with a focus on proactive management of both spatial and non-spatial resources to enhance adaptation in resource-scarce contexts.

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