Informal Sector Research Articles

“Be ready to pay because others are paying”: contested solid waste management transitions and charges in Accra’s open-air markets

ABSTRACT Approaches to solid waste management (SWM) in African cities have gone through various phases. Each phase is shaped by a range of factors, including population growth, urbanisation, government policies and political willingness to invest in SWM infrastructure as well as SWM services. In the Ghanaian context, the latter factor is said to be subject to public perceptions of SWM as a welfare service and hence the reluctance of people to pay for SWM services even though “others” are paying. In this paper, an attempt has been made to investigate how approaches to SWM in Ghana have transitioned over time and its consequences on willingness to pay for SWM services in the Kaneshie, Madina and Kantamanto open-air markets in Accra. Based on the study findings and the vital role that open-air markets (OAMs) play in African cities, a system of standardising SWM fees is recommended for SWM service providers in both formal and informal sectors.

Mobile money, stockouts and informal microenterprise performance: evidence from sub-Saharan Africa

PurposeThe extensive use of mobile money (MM) has been widely recognized as a digital engine of socioeconomic development in sub-Saharan Africa (SSA). This paper aims to focus on the effects of MM use and stockouts on informal microenterprise performance and investigate whether MM use mitigates the relationship between stockouts and firm performance.Design/methodology/approachThis study utilizes firm-level data from the latest World Bank Informal Sector Enterprise Surveys across six SSA countries. We employ instrumental variable-adjusted and propensity score-weighted regressions to investigate the buffering effect of MM use.FindingsWe find a significantly positive effect of MM use and a significantly negative impact of stockouts on informal microenterprise performance. Importantly, we establish that MM use attenuates the negative impact of stockouts on firm performance. We further document that the attenuating effect of MM use is more profound for firms using MM for transactions with supply chain partners, located in communities with high MM use rates, and operating in the retail industry.Practical implicationsOur research generates important managerial and policy implications. Future policies should capitalize on MM to foster an effective financial ecosystem in which informal microenterprises can survive and grow, thereby deepening their contributions to sustainable development.Originality/valueWhereas the business benefits of MM among small, medium and large firms are well-documented, the role of MM use on informal microenterprise performance is less understood. This study fills the research gap in the literature by focusing on the influence of MM use on the relationships between informal microenterprise operations and performance.

Difference between Global South cities: Mexico City, Freetown and the global division of urban informal labour

This work pursues a new explanatory framework for understanding some of the variance and homogeneity of informal work between cities in the Global South. Rooted in a materialist approach to informality, it seeks to explain the dynamics of informal work in different urban contexts via a novel application of the global division of labour, termed the global division of urban informal labour. Through a comparative analysis of the urban labour regimes of Freetown, Sierra Leone, and Mexico City, Mexico, the work argues that each city’s respective location within the global capitalist system largely determines the nature of their informal economies. It posits that a city’s informal labour regime is shaped by whether a city’s economy is predominantly defined by financial, industrial or extractive capital, and explores the ramifications of the financialised economy of Mexico City and the extractivist economy of Freetown for shaping informal work in each city. Such an approach attempts not only to explain urban and labour regime variance but also to highlight the essential and foundational nature of informal work in global capitalism today. It also seeks to aid in the task of recentring capitalism and class considerations into understandings of the internal and external dynamics of Global South cities in general.

Challenges of Street Vending Market in Urbanization from Gender Perspective: The Case of Nifas Silk Lafto Sub City, Jemo-01 Area, Addis Ababa, Ethiopia

Street vending is informal market. There are debates about street vendors, some argue that they cause problems in urbanization activities like pedestrian & traffic congestion, pollution, crime, illegality and should be eliminated and other argue that they are essential for promoting urban economic activities and reduce unemployment. The aim of this study is to identify the main driving causes and challenges of street vending in Nifas Silk Lafto sub-city, Jemo- 01 Site from gender perspectives. Quantitative data collected from 216 questionnaires and qualitative data obtained from 36 key informants and in-depth interviewee. The quantitative data analyzed using, percentage frequency, correlation, Chi-square & Mann-Whitney U test and qualitative data processed using thematic analysis. The result indicate that the driving cause for street vending are, high family poverty (P, 0.001) and easy to enter (P, 0.001) to street vending are more significant in male than female. However, lack of other job option (P, 0.001) is more significant in female. Regarding the consequence of street vending market, traffic congestion and car accident (P, 0.004), encourage illegality (p, 0.003) were the major significant negative consequence of street vending market. Whereas street vending support economic activities and mobilize work force is the positive consequence that the p, 0.034 < 0.05 at 95%. Regarding challenge of vending market, the result found that great challenge for female than male (P, 0.002), according to qualitative analysis, theft, physical harassment, confiscation of goods, health problem were major challenge. In conclusion, street vending market has both negative and positive consequence in urbanization process and different root cause for both male and female.

Factors Influencing the Participation in Defined Contribution Pension Scheme by Urban women in the informal Sector in Ghana

The study set out to investigate reasons for the low interest in participating in Defined Contribution Pension Schemes (DCPS) by urban women in the informal sector in Ghana (UWISG) in order to unravel the causes of the phenomenon of non-participation so that solutions can be identified. Most studies conducted on voluntary participation in pension schemes have not explored the such variables; perceived net pension wealth, permanent income, attitude, subjective norm, and perceived behavioural control. The main research questions among others are; what are the effects of demographic characteristics of urban women in the informal sector in Ghana (UWISG) on their intention to participate in Defined Contribution Pension Schemes (DCPS)? What is the impact of perceived net pension wealth (perceived benefits) on the intention of UWISG to participate in DCPS? The Methodology of the study is quantitative research design. The study has two research models a logistic regression model of demographic variables and model is a framework consisting of exogenous and endogenous latent variables. Some significant findings of the study are (i) an inverse relationship between disposition to save and intention to participate in DCPS. The inverse relationship implied that most of the respondents would prefer to probably put money in their savings or investment accounts rather than contributing to DCPS. The study also found the age variable to be an insignificant influencer of DCPS adoption intention.

The effect of informality on profit rates: the role of feminization of labor

This paper explores the intricate dynamics among the informal economy, profit rates, and the feminization of labor. While extensive literature has delved into the causes and consequences of the informal economy, a notable gap exists in understanding its impact on profit rates—an essential indicator of a capitalist economy’s health. The preference of certain firms to operate informally enables them to reduce costs, enhance competitiveness, and diminish union influence, ultimately boosting profitability. The paper proposes and tests the hypothesis that the informal sector’s presence is linked to higher profit rates. Methodologically, the study introduces a Post-Keynesian model that incorporates gender-specific marginal propensities to consume, followed by a simulation analysis. Subsequently, an econometric model is employed, utilizing data from 127 countries spanning 1991–2018. Results from both simulation and panel data analysis robustly indicate a significant association between the informal sector and increased profit rates. This phenomenon is attributed to the feminization of labor, suggesting a role in cost reduction.

Get out of life on the edge: The role of urban public health services on migrants’ social integration in China

AbstractPublic health services for migrants are not only related to their health status, but also crucial to their social integration in the host cities. Using data from the 2017 China Migrants Dynamic Survey, we examine the impacts of urban public health services on migrants’ social integration. We find a positive correlation between the accessibility of public health services among migrants and their social integration. Research on the mechanisms reveals that obtaining public health services contribute to social integration by improving migrants’ health status, fostering the alignment of hygiene practices with those of local residents and promoting family migration. Heterogeneity analysis shows that the positive impact of public health services on social integration is notably pronounced among migrants engaged in informal employment, lacking social security, holding rural hukou and having a relatively brief duration of residence in the host cities. This paper presents valuable insights into migrants’ social integration which is a critical issue for policymakers. By improving the accessibility of public health services, migrants will better integrate into host cities. The findings may be instructive for promoting urbanization in China and other countries.

Contribution of the informal market of village chickens to sustainable livelihoods in KwaZulu-Natal, South Africa

Contribution of the informal market of village chickens to sustainable livelihoods in KwaZulu-Natal, South Africa

Heat causes large earnings losses for informal-sector workers in India

Abstract Heat reduces labor productivity and output in formal manufacturing but little is known about its impacts on the earnings and welfare of workers in the informal sector that comprise 82\% of the labor force in low-income and lower-middle-income countries. This study reports the results from daily surveys of nearly 400 workers in two slums in Delhi for a month in the summer of 2019. Every degree Celsius increase in wet bulb temperature was associated with a fall in gross earnings of 13(± 3.5) percentage points, a fall in earnings net of work-related expenditure of 19(± 4.5) percentage points, an increase in the self-reported probability of sickness of the worker or a family member of 6(± 0.5) percentage points, and a decrease in the probability that a worker went to work of 2(± 0.5) percentage points. Net earnings were 40\% lower during the two heatwaves that occurred during the study period.Over 320 million informal-sector workers in low-income and lower-middle-income countries are currently exposed to temperatures similar to those observed in this study.

Challenges and Solutions for Labor Law Reform that Strengthens Workers' Rights in Vietnam

This study provides a comprehensive analysis of the legal protections for bargaining rights in Vietnam, exploring the impacts of rapid economic development, globalization, and recent legislative reforms. The Đổi Mới reforms of the late 20th century marked a significant shift from a centrally planned economy to a socialist-oriented market economy, leading to substantial changes in Vietnam’s labor laws. These reforms aimed to align Vietnam’s labor regulations with international standards, particularly concerning workers' bargaining rights. Employing a qualitative research approach, this study analyzes the effectiveness of Vietnam’s Labour Code, the role of trade unions, and recent legislative updates through documentary research and expert interviews. Findings highlight both progress and challenges: while legal provisions for collective bargaining and the role of trade unions have seen improvements, significant weaknesses remain in enforcement mechanisms and coverage for informal workers. The research identifies practical issues, including the disparity between formal and informal sectors and the limited independence of trade unions. The study proposes recommendations to enhance bargaining rights protections, such as strengthening enforcement, expanding legal coverage to informal workers, increasing trade union autonomy, and improving legal aid services. These insights aim to inform policymakers, legal practitioners, and labor rights advocates on how to address existing gaps and improve the effectiveness of labor protections in Vietnam. Ultimately, this research contributes to the broader discourse on labor rights in transitioning economies, offering strategies for advancing legal protections in response to ongoing economic and social changes.

Evaluation of Solid Waste Produced in Garowe District Somalia

Historically, waste management in Garowe District was marked by traditional practices driven by necessity rather than environmental consciousness, the aim of the study was to evaluate solid waste produced in the district while the specific objectives were to identify the composition and quantity of biodegradable waste generated the Garowe District, to assess the types and quantities of non-biodegradable waste produced in Garowe District and also To evaluate the existing waste management practices in the district. The study employed mixed methods. Copies of questionnaires were administered to 388 households and interviews conducted with 5 key informants to assess solid waste composition, quantities, handling practices, and management gaps. The study found food scraps constitute the majority of biodegradable waste generated in households, while plastics dominate the non-biodegradable waste stream. On average, household waste generation exceeds 1 kg per day, and municipal collection services only reach a portion of district residence. Existing waste management efforts focus primarily on collection and disposal with minimal infrastructure for material recovery, recycling or composting. While most residents express willingness to separate organic waste, few households implement home composting due to knowledge gaps and space constraints. The findings reveal significant potential to improve waste management sustainability by reducing disposal volumes and introducing programs to divert organics and recyclables from dumping sites. Key recommendations include public education, expanding source segregation, constructing composting and recycling facilities, and better integrating the informal recycling sector. The study provides important baseline data to inform integrated municipal solid waste management planning aligned with local needs while minimizing environmental and public health impacts. KEYWORDS: Waste management, Garowe District, Municipal solid waste, Household waste, Somalia

Financial Performance Evaluation of Small Finance Banks: A CAMEL Analysis

Small finance banks (SFBs) are a special category of banks incepted by the Reserve Bank of India in 2015 to cater to the financial needs of the underserved population of the country with the aim of financial inclusion. They serve the priority sector and the unorganised sector of the country. This article analyses and evaluates the performance of these banks on the basis of various financial parameters such as capital adequacy, asset management, management quality, earning quality and liquidity derived from the CAMEL framework. Following a robust evaluation methodology, namely data envelopment analysis (DEA), a sample of all the SFBs operating in India to date is taken. As per the composite rating of CAMEL, results show that the majority of SFBs exhibit satisfactory performance. Utkarsh SFB Limited is ranked at the first position and is followed by Fincare SFB Limited on the second position. Jana SFB Limited stands at the last position amongst all the banks, preceded by ESAF SFB Limited. The results of DEA show average inefficiency among SFBs. The calculated efficiency scores of SFBs highlight that Capital SFB, Fincare SFB, Jana SFB, Shivalik SFB and Utkarsh SFB are the most efficient banks, with a technical efficiency score of 1. ESAF SFB has the lowest efficiency score. Scale inefficiency is the major reason for inefficiency. The study provides valuable insights to the authorities, managers and investors about the performance of these banks and gives them a future vision of the sustenance of these banks.

Exploring the mechanisms of underground economy: A case study of the informal bicycle market in a southern China city

This paper aims to explore the typical mechanisms of the underground economic phenomenon through anthropological and grounded theoretical methodology through an ethnographic study on the site of an informal bicycle market in a city in South China. It investigates and analyzes the formation path and mechanism of the informal bicycle market. Data was collected through unobtrusive observation and in-depth interviews. It follows a grounded theory data analysis procedure based on multiple data sources, such as participant observations, interviews, prior literature, and news reports. The model illustrates how the informal bicycle market is formatted and the mechanisms to maintain its operations. The findings indicated that the development of the informal market affects the efficiency of social resource allocation and, in many cases, may erode the overall system of the national economy. The analysis of the formation path and mechanism of the underground economy represented by the informal market is of great significance for the sustainable development of the social economy.

The labor market effects of facilitating social security contributions under part-time employment contracts: Evidence from Colombia

We examine the impact of homogenizing the tax base between part-time and full-time labor contracts in a context with high informality. Using employer–employee matched administrative records and household survey data, we estimate the effects of a reform that eliminated a wedge in regulatory costs across different work schedules in Colombia, reducing the relative costs of formal part-time employment. We find that the reform increased the probability of entering the formal sector for previously informal part-time workers (the target population). Using pre-reform variation in firms’ demand for workers eligible for the policy, we find a 5.5 % increase in formal employment at firms more exposed to the policy. Mean wages at these firms rose by 0.88 % after the reform relative to those at firms that tend to hire fewer workers with no formal sector experience. Firms with more exposure to the reform also experienced higher churn, consistent with the policy creating incentives for firms to rotate across workers at a faster pace.

Revisiting the effect of information and communication technologies on employment growth in Ghana: The role of enterprise formality

The employment effect of information and communication technologies (ICT) on firm performance remains a critical topic for policy and academic research. However, our understanding of the ICT-employment growth relationship in both informal and formal sectors in developing countries remains limited. Based on repeated cross-sectional data collected in 2013 and 2015 on 483 Ghanaian manufacturing enterprises and estimating a Feasible Generalised Least Squares (FGLS) regression model, the findings show that access to the internet leads to employment growth in enterprises, while the adoption of mobile phone technologies reduces the number of workers in enterprises. The positive effect of internet access on employment growth tends to be greater in enterprises with a higher degree of formality, while informal enterprises appear to remain small in terms of employment by using internet technology. We discuss these findings and their implications for digital technology policy in developing countries.

People as infrastructure resistive politics: Designing nostalgia and storytelling in Austin’s downtown

ABSTRACT Drawing on several months of informal observations and conversations in Austin, Texas, this paper explores how longtime clubbers maintain the nostalgia and meaning of local venues from newcomers who use these venues to enhance their social status. This work is based on a rich tradition of Global South and urban scholars, who demonstrate how disenfranchised city residents collaborate to elevate their standard of living and resist further encroachment of urban change in their spaces of living, forming informal economies, makeshift housing infrastructure, and social infrastructures. Adding to these works, I show how longtime patrons of music venues use what I call adhesive design: a resistive design technique where local patrons use stickers to embed venues with nostalgia and to authenticate long-term patrons and newcomers. This paper and my adhesive design concept contribute to a growing body of literature investigating collaborative resistance practices against gentrification and urban change, showing how nostalgia and storytelling are powerful tools to maintain social infrastructures.

The Impact of Retirement on Subjective Well-Being: Evidence from Chinese Formal Sector Workers

The Impact of Retirement on Subjective Well-Being: Evidence from Chinese Formal Sector Workers

Breaking barriers: how the rural poor engage in tourism activities without external support in selected Iranian villages

BackgroundThis study examines the participation of the rural poor in tourism activities without external support in selected Iranian villages, addressing the research gap on their direct involvement in formal and informal tourism businesses.MethodologyA qualitative approach was employed, utilizing face-to-face semi-structured interviews with 65 participants from three villages near Turan National Park in Shahrud, Iran. Data were analyzed using thematic analysis.FindingsResults indicate that the rural poor actively engage in tourism. This participation encompasses seeking formal employment in tourism facilities, engaging in informal activities, and acquiring relevant knowledge and skills. The study highlights the significant potential of informal tourism businesses in increasing opportunities for low-income individuals, despite challenges such as lack of capital and legal protection.ConclusionThe findings demonstrate that even without external assistance, the rural poor find ways to participate in and benefit from tourism activities. Both formal and informal tourism activities play important roles in poverty alleviation efforts. The study emphasizes the need for targeted interventions to support the rural poor's participation in the tourism sector and harness tourism's potential for poverty reduction in rural areas.

Sociodemographic associated factors with non-disclosure of HIV sero-status to sexual partners in Maputo, Mozambique

The HIV prevalence in Maputo city is 16.2%. There is a lack of data describing associated factors with disclosure or non-disclosure of HIV-positive sero-status to sexual partners. This analysis describes associated factors of non-disclosure of HIV sero-status to sexual partners among people living with HIV (PLHIV) participating in a serostatus disclosure support program at three health facilities in Maputo, Mozambique. We used a cross-sectional design of PLHIV aged over 18 years. Datas were collected between December 2019 and September 2020. Univariate and multivariable logistic regression models were used to evaluate factors associated of non-disclosure of HIV sero-status. A total of 377 patients were enrolled in the HIV sero-status disclosure Program. Of these, nearly two-thirds (61.5%) were women, 52.9% had completed secondary school, 47.7% were 25–34 years old, 50.9% had informal employment with low income, and 73.2% were married. Univariate logistic regression model showed greater odds of non-disclosure among patients who had an employment contract with a maximum wage (Crude Odds Ratio [cOR] 2.02, 95% confidence interval [CI] 1.15–3.55, p = 0.015); were single (cOR 3.85, 95% CI 2.22–6.69, p < 0.001); were living with parents (cOR 2.30, 95% CI 1.07–4.93, p = 0.033); received financial support for their monthly household expenses from parents or a close relative (cOR 7.15, 95% CI 2.19–23.36, p = 0.001); or brought a parent/close relative and/or a friend as a confidant during HIV care(cOR 3.17, 95% CI 1.74–5.76, p < 0.001; and cOR 5.97, 95% CI 1.57–22.66, p = 0.009, respectively). Multivariable logistic regression model showed: from parents/close relative and from partner (Adjusted Odds Ratio [aOR] 8.19, 95% CI 1.44–46.46, p = 0.018; and aOR 4.34, 95% CI 1.05–17.17, p = 0.043), respectively); in those who brought a parent/close relative and/or a friend as a confidant during HIV care (aOR 8.86, 95% CI 2.16–36.31, p = 0.002; and 195 aOR 21.68, 95% CI 3.02–155.87, p = 0.002, respectively). Non-disclosure of serostatus is a critical issue for HIV care and treatment programs, given that non-disclosure of HIV serostatus increases risk of HIV transmission. Understanding the factors associated with non-disclosure is crucial for designing strategies to address these factors and end the HIV epidemic by 2030. Our findings suggest that HIV serostatus disclosure programs might target the sociodemographic factors strongly associated with non-disclosure.

Exploring the impact of perceived early marriage on women’s education and employment in Bangladesh through a mixed-methods study

Child marriage negatively affects women’s socio-economic empowerment, particularly in education and employment. This study aimed to explore women’ perspectives on the timing of their marriages, considering their educational and employment status at the time. It also sought to identify factors influencing early married women’s perception of their marriages as timely. We analyzed both quantitative and qualitative data. The quantitative data included a sample of 5,596 women aged 15–24 from the 2017/18 Bangladesh Demographic and Health Survey. Additionally, we collected qualitative data through six in-depth interviews, two focus group discussions, and 13 key informant interviews. We used a multilevel mixed-effects Poisson regression model to examine the relationship between women’s formal employment, education, and child marriage. Thematic analysis was employed for the qualitative data. Around 62% of the total women analysed reported their married occurred early with the mean age at marriage was 15.2 years. Approximately 55% of the total early married women believed their marriages occurred at the right time, especially among those who were employed at the time of their marriage. Among this subset, we also noticed a higher likelihood of discontinuing work and education following marriage. Qualitative findings revealed reasons behind this perception, such as escaping poverty, safety concerns, limited job prospects, and the impact of non-marital relationship and societal norms. While many early-married women perceived their marriage as timely, particularly those initially employed, this decision often coincides with a subsequent withdrawal from work and education. This underscores the pressing need for policies and programs aimed at educating women about the legal age for marriage and the negative consequences associated with early marriage while also equipping them with knowledge and resources for informed decision-making.