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Supporting Workers in the Informal Economy: A Policy Framework
... organizational capacity among the women traders-one of the least powerful population groups, tending to have low levels of capacity for collective action (Chen et al., 2002;Clark, 2010;Lindell, 2010a;Meagher, 2010b;Brown et al., 2010;Gallien and van den Boogaard, 2020). ...
... The informal economy is a space of unequal distribution of power, and women working in the informal economy tend to be marginalized along multiple axes of power: economically, socially, and politically (Chen et al., 2002;Meagher, 2010b;Clark, 2010;Lindell, 2010a). Economically, women tend to be overrepresented in the low-skill, low-income economic activities with little prospect of advancement (Meagher, 2010a), particularly in informal trading (Chen and Snodgrass, 2001;Roever, 2014). ...
... This chapter has delved into the micro-level links between taxation and collective action among urban, informal women market traders in Dar es Salaam-an intersectionally disadvantaged group faced with multiple power-related barriers to collective action (Chen et al., 2002;Clark, 2010;Lindell, 2010a;Meagher, 2010b). Investigating the role of revenue provider motivation and capacity, the chapter contributes to understanding when and how taxation triggers collective action in an informal, gendered context-that is, a context where the revenue providers have limited resources and holding power vis-à-vis the state (see Chapter 2; Meagher, 2018). ...
This book examines the politics of revenue bargaining in Africa at a time when attention to domestic revenue mobilization has expanded immensely. Measures to increase taxes and other revenues can—but do not always—lead to a process of bargaining, where revenue providers negotiate for some kind of return. This book offers in-depth analyses of micro-instances of revenue bargaining across five African countries: Mozambique, Senegal, Tanzania, Togo, and Uganda. All case studies draw on a common theoretical framework combining the fiscal contract theory with the political settlement approach, which enables a systematic exploration into what triggers revenue bargaining, how these processes unfold, and, finally, if and when they reach an agreement (whether a fiscal contract or not). From the empirically rich case narratives emerges a story of how power and initial bargaining position influence not only whether bargaining emerges in the first place, but also the processes and their outcomes. Less resourceful taxpayers are in a more difficult position to raise their voice, but in some cases even these groups manage to ally with other civil society groups to protest against tax reforms they perceive as unfair. Indirect taxes such as VAT often trigger protests, and so do sudden changes in tax practices. Revenue providers rarely call for improved services in return for paying tax, which would be expected to nurture the foundation for a fiscal social contract. Instead, revenue providers are more likely to negotiate for tax reductions, implying that governments’ efforts to increase revenue are impeded. We do find many instances of state–society reciprocity when ruling elites try to be responsive to revenue providers’ demands. Hence, this book gives insight into the nature and dynamics not only of revenue bargaining but of policymaking in general as well as the implications hereof for state–society reciprocity in Africa.
... Since the inception of the informal sector, it has been the subject of much debate in academic literature. The theoretical understanding of the 'informal sector' has evolved significantly, ranging from early studies that considered informal activities as marginal or residual in nature to more recent perspective that contemplate it as a central aspect of the economic and social dynamics in any country, particularly those less developed (Gerxhani, 2004;Chen et al., 2002). In the concepts of a dual economy and social marginality, which were the early studies on the informal sector (1960)(1961)(1962)(1963)(1964)(1965)(1966)(1967)(1968)(1969)(1970), the formal economy was perceived as a thriving phenomenon representing growth, progress, and modernity, and the informal economy was viewed as a collection of subsistence activities undertaken by individuals excluded from formal employment (Huang et al., 2020;Heintz and Pollin, 2005). ...
... In contrast to the two aforementioned perspectives, neoliberals perceive informal work arrangements as a rational response by constrained entrepreneurs seeking to avoid the bureaucratic complexities and high expenses associated with formality, particularly in the face of excessive government regulations (Huang et al., 2020;Zaki, 2017;Chen et al., 2002). Neoliberals conceptualize informality as a manifestation of free-market forces responding to the shortcomings of state intervention. ...
... Researchers adhering to this perspective highlight the ingenuity, entrepreneurship, and pragmatism of informal workers in creating income opportunities and alleviating poverty in the context of the high costs associated with formal compliance (Huang et al., 2020). However, profit-oriented capitalist firms often engage in informal business practices to reduce their costs and increase their profitability (Chen et al., 2002). Critics also contend that workers within the informal sector lack protection, often involve in survival activities and are frequently subjected to exploitation by the formal sector (Birbeck, 1979;Lomnitz, 1982). ...
... Este nuevo paradigma arguye que las políticas dirigidas a solucionar el problema que la informalidad implica son, por necesidad, complejas y deben ser dependientes del contexto. Además, no excluyen el reconocimiento de las organizaciones informales, aceptando que algunas actividades en pequeña escala deben recibir apoyo a pesar de su falta de formalidad (Chen et al., 2001;Chen, 2007;Cozzens & Sutz, 2014). ...
... Es debido a la persistencia del sector informal que algunos autores han generado la llamada nueva visión con propuestas de políticas dirigidas a apoyar las actividades de dicho sector y aprovechar así sus contribuciones en la economía y en la sociedad (Kumar & Bhaduri, 2014;Tokman, 2001;Chen et al., 2001). 4 Desde diversas perspectivas, en la literatura se registran revisiones atinadas de la naturaleza, del concepto y de la definición operativa del sector informal, véanse Tokman (1995), Gërxhani (2004) • 67 ...
... En esta línea, diversos trabajos académicos han evidenciado que las actividades informales -en particular las de las empresas-no son necesariamente improductivas 5 (Nguimkeu, 2013;Chen et al., 2001). Es seguro que, debido a alguna evidencia similar, autores relacionados con organismos internacionales como la Organización Internacional del Trabajo (oit) (Bangasser, 2000) y, en fechas más recientes, organismos de perfil más académico como Women in Informal Employment: Globalizing and Organizing (wiego) (Chen et al., 2001) y el International Development Research Centre (idrc) (Cozzens & Sutz, 2014) han propuesto la creación de políticas de desarrollo más amigables con las actividades informales. ...
Unlike traditional theories of development, new schools of thinking consider nonfarm informal micro-enterprises as a dynamic sector. Nevertheless, social researchers from both streams recognize the necessity of policies to formalize and increase the productivity of such kind of enterprises. Using Mexican data from 2008 and cluster analysis techniques, this work proposes that informal micro-enterprises constitute a very heterogeneous group and that such heterogeneity deserves a diversified strategy of development: while some entrepreneurs would benefit from productivity policies, some others would require an assistance approach.
... In the publication Chen et al. (2002), the challenges of promoting decent work and social protection in the informal economy are explored. These authors emphasise the need to form a strategy for extending social protection to workers in the informal sector. ...
... Russo et al. (2021),Yakymchuk (2024),Cramton et al. (2017), Unilever (2024),Bernow et al. (2001),Google (2024),Chen et al. (2002),Gasper et al. (2020) ...
This research examines the symbiotic relationship between the creation of green jobs within enterprises, economic growth, and the consequential reduction in CO2 emissions. It delves into the multifaceted advantages derived from integrating sustainable employment practices within businesses, emphasising their substantial contribution to fostering economic prosperity while concurrently mitigating adverse CO2 emissions. The main goals of this article are as follows: to study the experience of developed countries regarding the costs of their sustainable development strategies and the effects that have been achieved; generalise the main tools for ensuring decent work on the example of large companies, evaluate the relationship between reducing nitrogen dioxide emissions and providing green jobs. A comparison of financial instruments for maintaining green workplaces at enterprises in developed countries (USA, Norway, China, Germany, Sweden, and Poland) has been made. CO2 emissions reduction strategies, expenditure, funding, financing, and green jobs by countries have been analyzed. By investing in green initiatives and restructuring operational frameworks to prioritise sustainability, enterprises actively mitigate their carbon footprint, ultimately contributing to a greener and more environmentally conscious business landscape. This comprehensive study explores recent advancements in green job creation and renewable energy development in different countries of the world. The strategies of reducing CO₂ emissions by such companies as IKEA, Google, Unilever, and Tesla show not only positively impact the environment but can also be profitable for their businesses and guarantee decent work for their employees.
... His model assumes that as soon as the modern industrial sector develops, it will absorb the surplus of labour supply that exists in the traditional economy and the latter will disappear. Unfortunately, the modern sector has been unable to absorb the surplus of labour in most developing countries (Chen et al., 2002). ...
... Later in the second half of the 1990s, the informal sector denomination was replaced by the term "informal economy" to feature the fact that informality is not confined to a specific sector of economic activity but exists across various sectors of the economy (Chen et al., 2002). The informal economy has also been adopted to refer to a broader concept that includes enterprises as well as employment in informality. ...
The growth of the manufacturing sector is important for overall productivity growth. Indeed, the rising importance of the manufacturing sector at early levels of development is considered one of the stylised facts of development. Recently, several developing countries have skipped this step however, with stagnant growth of the manufacturing sector. In this paper, we investigate the role of the informal segment in the stagnant growth of the manufacturing sector in the context of India. To do so, we initially compute the drag imposed by informality on the productivity growth of the manufacturing sector before investigating whether the movement of workers between the formal and informal segments of the manufacturing sector is having an impact on manufacturing productivity growth using a relatively long time series of data for the period 1980-2011. We find that the informal segment is harmful to the growth in productivity of the manufacturing sector. Using a modified shift-share analysis with the introduction of the informal segment, we find that labour reallocation to the informal segment of the manufacturing sector is growth reducing in the Indian manufacturing sector. The main source of this growth reduction is the within sub-sector structural change effect, indicating that workers move on average from productive formal to less productive informal employment within sub-sectors. In terms of movements across sub-sectors, there has been a movement towards more productive informal activities, but this has not been enough to offset the negative within sub-sector effect. Mainly, we have seen limited growth-reducing structural change after the 1994 liberalisation, implying that employment has moved to less productive informal firms after liberalisation.
... As used in this framework, a policy refers to an overall plan or course of action by national or local government. Specific legislation, regulations or sectoral policies should then derive from the overall policy and should be enforceable in a manner and style that conforms to the policy intent (Chen, Jhabvala & Lund 2001). ...
... As used in this framework, a policy refers to an overall plan or course of action by national or local governments. Specific legislation, regulations, or sectoral policies should then be derived from the overall policy and should be enforceable in a manner and style that conforms to the policy intent (Chen, et al, 2001). ...
It is a challenge and an opportunity to manage risk factors in the construction
infrastructure projects within a limit. Professionals are not due concentrating their
expertise and skill in this direction, so as every minute, every second passes by, there
is a chance of cost and time over-running and degradation of quality in each
infrastructure projects because of many more causes. Particularly, developing
countries were severely suffering by those risk factors. In Asia, many countries are
developing countries, Among them Nepal has suffered for more than one decade by
the civil insurgency, now it is on queue to the peace process which is not yet
concluded. It is landlocked country and situated between China and India. In the
infrastructures development either in rural area or urban, professional
consciousness is a must. Previously performed infrastructures were not properly
planed so that could not become result oriented. Although first five year development
plan was started from 1956, its economic plan was started and now already passed
tenth five years and could not get success as per the expected objective.
It is difficult for a new professional to identify new risks, in a new environment
and politically instable countries. It is more difficult to assess these risks and impact
of relationships among them. Legal policy framework has not been made by the
government because of frequent change in government and hence legal and political
risks are more catastrophically influencing equitable infrastructures development,
simultaneously financial, economic and other risk factors. It is more difficult to
assess these risks and impact of relationships among them. The trend in construction
projects is just ignoring and making the decisions which are unrealistic and
irresponsible by authorized professionals as well as other fact is identifying,
... Studying the reactions of workers in the informal tourism industry to the Covid-19 issue is essential for the rehabilitation process after the pandemic. An in-depth comprehension of the techniques employed by individuals and organizations to endure and prosper in this crisis can offer useful insights for policymakers and industry stakeholders (Budiarto et al., 2021;Chen et al., 2002;Kaplinsky & Kraemer-Mbula, 2022;Martínez-Peláez et al., 2023;Ratten, 2020). This research aims to discover best practices and potential prospects for sector recovery by examining the adaptation and innovation actions performed by informal workers. ...
The informal tourism sector plays a vital role in the local economies, particularly in destinations such as Bali. This aligns with the United Nations Sustainable Development Goal 8, which focuses on promoting decent work and economic growth. These workers, who are often ignored, greatly enrich the experience of tourism but encounter distinct obstacles on a daily basis. Gaining insight into their methods for staying alive is crucial. Informal workers face distinct limits compared to formal sector employees, resulting in less defined sustainability and growth strategies. A thorough investigation was carried out in nine regencies in Bali, utilizing observations and interviews, in order to examine these tactics. This method facilitated a comprehensive comprehension of their day-to-day routines and difficulties. The study identified four crucial survival strategies: implementing prudent financial management to sustain businesses and meet daily needs, utilizing communication skills to maintain income and continuity, enhancing social capital through positive relationships with fellow workers, and comprehending government policies. Out of these factors, effectively managing economic capital is crucial for maintaining livelihoods in the fiercely competitive tourism business. The results of this study provide a basis for future policies or interventions aimed at supporting and enhancing the lives of informal sector workers in tourist areas such as Bali.
... Economic factors: According to Chen (2002), capital intensification results in a decrease of the workforce, or what is known as "dawn sizing" in the US. Workers who are unable to land desirable positions in the modern economy frequently become part of the informal workforce. ...
The study’s primary goal was to analyse the driving forces behind street vending operations and the difficulties they face in the targeted area. The research was conducted using both quantitative and qualitative methods, utilizing explanatory and descriptive designs in the technique. There was use of both primary and secondary data sources. Four government officials and 222 street businesses were chosen for the study using purposive sampling procedures. Structured questionnaires were used to collect the data. The study findings clearly display that economic and social factors have a significant influence on street vending in the study area. The study went on to look into the difficulties that street sellers in the study area deal with, including things like a lack of funding, a space to work, and credit availability. In conclusion, the study recommends that governments should develop a policy for street vending, fortify stakeholder interactions, and expand the capacity of street sellers when contemplating legalizing the practice and selecting a suitable place in urban centres.
... Combating diseases -HIV/AIDS/ CORONA 19, Safe drinking water Programs, Through opening health centres and medical camps, Combating human, free distribution of PPE kits during Covid-19. 2 Promotion of Education -through education Support programs, through right to educate children program and other women education programs 3 ...
The concept of Corporate Social responsibility has been subject of research from last 60 years. In this era of cut throat competition all the sectors have understood the importance of CSR. The main objective of this paper is to critically analyse the need for CSR and the development brought to Indian society by CSR practices of different organization working in India. With time most organizations has understood the importance of CSR and has started implementing CSR activities for the benefit of both-organization as well as society (Tran, 2014).This study was conducted with the aims at the knowing need of CSR and strategies opted by different organization to implement CSR and what type of change their activities are bringing into Indian society. This study suggested that more research must be conducted in this area to know the real impact of CSR practices on society. This research paper highlights the main organizational reason and need of implementing CSR practices. For analysing the need and change brought in society through CSR Activities data was collected from annual reports of organizations, magazines, books and from journals. This study reveals that organization bringing change in society through their education, skill development & rural development& on health sector activities though the speed of change is still very slow.
... Although the government cannot control this sector to the same extent as in the formal economy, there still needs to be a significant disparity between these two forms of economy (Pratap & Quintin, 2006). Due to the informal economy's lack of regulation, this sector often becomes associated with illicit activities, including importing lowwage workers, establishing unregistered small-scale companies to evade taxes, and other similar practices (Chen, Jhabvala, & Lund, 2002;Parela, 2022;Yahya & Yani, 2023). ...
Purpose: The purpose of this study is to determine whether refugees in Cox's Bazar area of Bangladesh can successfully integrate into the informal economic sector. This evaluation was carried out by comparing the actions of refugees in the labor market with those of the local population. Research methodology: This study used survey data from two population groupings. The sample size included 300 Rohingya refugees and 300 locals from Coxs' Bazar, where they are now living. ANOVA was employed to compare the category mean differences owing to the limited sample size. The calculations would include wealth, occupation, language, religion, and race as labor market barriers. Results: The data indicated significant disparities in both types of occupations and monthly incomes between local workers and refugee workers. Furthermore, the findings also suggest that Rohingya refugees encounter greater challenges when entering the job market than local workers. Limitations: Refugees in Bangladesh are unable to work. They must stay at local and international NGO (Ministry of Foreign Affairs 2014). No Bangladeshi labor legislation has protected them. Bangladeshi authorities can also imprison refugees on illicit travel. A good Rohingya refugee policy in Bangladesh is crucial to human rights. Contribution: The Rohingya Muslim population in Myanmar has been subjected to genocide, resulting in their expulsion and subsequent migration to neighboring countries. Bangladesh is the primary host nation for the Rohingya group from Myanmar, which has sought safety there as refugees for many years. Due to their lack of legal employment opportunities in Bangladesh, these refugees engage in informal economic operations and participate in various criminal activities inside the place where they reside.
... The earlier studies on the informal sector can be traced to by the International Labour Organisation (ILO) in Kenya in 1972and Keith Hart in Ghana in 1973(ILO 1972Hart 1973;Amin 2002;Chen, Jhabvala & Lund 2002;ILO 2002a;ILO 2002b;Thomas 2002). However, in theory, the emergence of scholarship on the informal sector can be linked to Lewis (1954) and Hirschmann (1958) who conceptualised economic development as the emergence and growth of manufacturing sector (the "modern" sector) through the absorption of labour being freed from agriculture (the "traditional" sector), due to the more efficient means of production in the former ( cited in Todaro 1987;Usman & Ijaiya 2000;Potts 2007;Arosanyin, et. ...
An empirical analysis of the rate of poverty and the decomposition of poverty status in the urban informal sector of Kwara State was carried out using a set of household data generated by the use of a structured questionnaire. The study used consumption-expenditure per adult equivalent and the P-alpha class poverty measure to determine the rate of poverty. The result of the analysis indicates that the rate of poverty was high with 63 percent of the operators' consumption-expenditure per adult equivalent falling below the poverty line of N9,837.66 per month. The poverty gap index was 0.43 and the severity of poverty index stood at 0.28. By decomposition, operators in the sector that are male, those not married, those with less than four children, those with tertiary education, those that did not belong to any trade association and those engaged in transport business are poorer in the sector. The consequences include the inability to participate in development decisions that affect their lives and their lack of power and voice to change things in their favour. Sufficient funds by financial institutions and government to help expand their businesses, public investment in infrastructural facilities, especially in electricity supply and self-help/communal assistance and the tenets of social capital were suggested as remedies.
... In the context of for the industrial sector; the most striking feature of the increase in scale returns with trade liberalization results in a decrease in the total number of companies in the industry, although each of the remaining companies produces more than before (Chen et al., 2002). Trade increases the basket of consumption and enables consumers to use different types of local and imported goods. ...
In recent years, there has been a proliferation of empirical work on child labour. Nevertheless, these studies tended to limit their analysis on the trade in homogeneous goods; this article aims to study the role of selection of variety or product heterogeneity in child labour demand for the South Asian Association for Regional Cooperation Countries (SAARC) during the period from 1999 to 2013. In the context of trade in homogeneous and heterogeneous goods, the relationship between child labour and the effects of trade breaks down into selection, scale and technique effects. The panel data method is employed to justify the spatial and temporal dimensions of the research. The estimation procedure of this study consists an exposure of selection, scale and technique effects. The results imply that the opening of trade alone will not reduce child labour if it is not accompanied by supportive measures, namely the trade-related effects of child labour, in particular the effects of scale and technique. Therefore, this study suggests that trade liberalization through trade-induced effects would be the way to reduce the incidence of child labour in emerging markets.
... La amplitud de las definiciones de informalidad, que analizamos en el capítulo 2, ha originado que el análisis sobre la contribución de las microempresas a la economía nacional e internacional haya quedado relegado a un debate sobre subcontratación de los trabajadores a domicilio. En el capítulo 8 apreciaremos que el origen de las materias primas es una cuestión definitoria en el debate sobre la diferencia entre trabajadores a domicilio y por cuenta propia (ILO 1996;Chen et al. 2002;Homenet South Asia Group 2016). No obstante, la variedad de fuentes de abastecimiento, junto con la calidad y precio de las materias primas y equipo, ayuda a determinar las ganancias, los ingresos de los hogares y el potencial de acumulación de los fabricantes informales. ...
Alan Middleton. Profesor emérito de Estudios Urbanos de Birmingham City Alan Middleton ofrece una retrospectiva de larga duración sobre la evolución del Ecuador entre 1975 y 2015, en la que muestra cómo las transformaciones a escala macro han afectado localmente a familias y a sus lugares de trabajo. El impacto del neoliberalismo y de las nuevas fuentes de ingresos provenientes del petróleo, en una economía tradicionalmente depen - diente de las exportaciones agrícolas, transformó al sector informal y artesanal del Ecuador. Al explorar esta dinámica, Middleton combina un análisis a nivel micro con otro a nivel macro para demostrar cómo las relaciones sociales del artesanado están conecta - das con los sistemas sociales, económicos y políticos más amplios en los cuales opera. Para vincular la microproducción con la economía en general, el autor analiza los nexos entre los diferen - tes tipos de empresas artesanales y sus consumido - res, sus conexiones con el sector privado y el Estado, la importancia que tienen las redes, el capital social y el capital financiero para estos productores. En suma, investiga cómo artesanos, empresarios y empresas familiares protegen sus intereses cuando se enfrentan con políticas neolibe - rales y con los impactos de la globalización.
... The informal sector is heterogeneous and the workers under the informal sector are categorised in three ways, namely, unprotected wage workers in the formal sector, self-employed workers in the informal sector and the wage workers in the informal sector (Chen et al., 2002;NCEUS, 2007). Street vendors are considered self-employed workers in the informal sector. ...
The present study is based on the awareness and understanding of street vendors towards the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi. This scheme was aimed at resurrecting the businesses of street vendors who were drastically affected by the covid-19 related measures i.e., lockdown. The purposive sampling technique was employed for data collection in Hisar city of Haryana state and 100 street vendors were selected randomly. The descriptive statistics results show that the awareness and reach of the PM SVANidhi scheme among street vendors was poor. Only 26 per cent of respondents got the loan under this scheme. Achieving eligibility criteria for availing the credit under this scheme seemed almost impossible. Lack of awareness about the scheme and difficulties in meeting the eligibility conditions, made difficult to the street vendors to avail the scheme. The vendors were harassed by the long process of obtaining the loan. Further remedial measures are required to rebuild self-employed informal businesses sustainably.
... The scholars who support this view argue that as the economy grew and developed, the traditional segment (informal sector), which consists of small producers and sellers, uncertain employment, and petty suppliers, will disappear and this old and traditional segment (informal sector) will merged into the present industrial sector (formal sector) of the economy. Therefore, economic development is a source of reduction in a traditional economy 1 ( Chen et al., 2002 ). According to Willman-Navarro (2008 ), the concept of informal sector can also be found in the book Capital by Karl Marx, where he states that as the capitalist production 2 grows and continues to progress, the commodity production 3 starts shrinking and disappearing. ...
... However, Chen et al. (2001) and Mehrotra and Biggeri (2007) affirms that subcontracting linkages contribute to an expansion of the traditional segment of the informal sector. These traditional enterprises are characterised by performing labour intensive activities, employing only family employees, having low capital ownership and located within the home premises of the owners. ...
Purpose
Subcontracting is a crucial cause behind the simultaneous existence of formal and informal entrepreneurship in India. This article aims to provide an over-time comparative analysis between the subcontracted and the non-subcontracted enterprises within the informal sector. Further, it also brings to fore the contribution of subcontracting towards ensuring sustainability of the informal enterprises.
Design/methodology/approach
By constructing a panel data from two rounds of NSS Unincorporated Enterprise Survey Data (2010 and 2015), and employing a PSM-DID method, considering labour productivity and net retained earnings as two critical indicators of growth and development of the informal sector firms, this study has made some broad claims regarding the differences in immediate and long run performances between the subcontracted and non-subcontracted informal sector enterprises in India.
Findings
This study finds that subcontracted enterprises have not only been performing at a much lower level than the non-subcontracted enterprises, they are also growing much slowly than their counterparts. However, it has been observed that for the establishments, who are capital abundant and also have a larger production capacity, subcontracting is showing the prospect for deriving sustainable gains.
Originality/value
This article contributes to the existing literature in the following two ways. Firstly, it provides an over-time comparative analysis between the subcontracted and the non-subcontracted enterprises within the informal sector. Secondly, it brings to fore the contribution of subcontracting towards ensuring sustainability of the informal enterprises.
... Indian households are already vulnerable due to untenable job markets; the lockdown due to COVID-19 has intensified this (Chen et al. 2002;Paul and Muralidharan 2020). The ability to generate fewer new jobs implies that the expansion in This pattern remained tenacious. ...
COVID-19 has disrupted the Indian economy. Government-enforced lockdown to restrict the spread of infection has impacted the household economy in particular. We combine aggregates from national income accounts and estimates from the microdata of a labour force survey covering more than 0.1 million households and 0.4 million individuals. The aggregate daily loss to households is USD 2.42 billion. While loss to earnings accounts for 72% of the total, the rest 28% is wage loss. Service-based activities account for two thirds of wage loss, and natural resource-based activities are responsible for most of the earning loss. The dominance of informal job contracts and job switching in labour markets intensifies this, with the most vulnerable group consisting of 57.8 million in casual engagement, who have a high degree of transition from one stream of employment to another on a daily basis.
Supplementary information:
The online version contains supplementary material available at 10.1007/s41027-021-00352-8.
... Some key policy-facing left-liberal thinkers include academics Martha Chen and Kate Meagher, both of whom are associated with WIEGO and wield sizeable influence on international labour policy. Their aim is formalisation when feasible, and to blunt the worst deprivations associated with informality otherwise, but not necessarily to end informality itself, noting the key role and 'opportunities' the informal sector plays in global capital accumulation and development, and an overall belief in the desirability of capitalism itself (Chen 2007;Chen, Jhabvala, and Lund 2002). Thus, the left-liberal coalition of INGOs, scholars and the ILO mainly calls for the creation of informal unions, social safety nets and fair-trading practices while maintaining a general belief in the ability of capitalism to eventually provide adequate, dignified work for all and in the superiority of a market-based global society (ILO 2019). ...
Informal workers in Africa are very often portrayed as primarily self-employed entrepreneurs and unemployed individuals largely excluded from capitalism, and thus insulated from class analysis and class dynamics. Drawing on a case study of informal workers in Sierra Leone, the article challenges this dominant understanding, arguing that informal workers experience the reality of class relations and that their material lives are shaped by, and help to shape, broader dynamics of capital accumulation. The research applies a holistic class analysis rooted in Marxist and feminist thought, arguing for an understanding of informal workers, including even small-scale ‘self-employed’ individuals, as workers exploited by, and opposed to the interests of, capital. In so doing, it challenges the simple understandings of working class as existing only and exclusively through formalised wage work, in favour of a more complex and inductive understanding of the reality of global capitalism, highlighting the relevance of class, value and exploitation to the lived reality of informal workers in Africa.
... Few studies have examined the impact of informality on inclusive growth. As argued by Heintz (2012), failure to account adequately for informality, which captures jobs that lack social protection and regulatory oversight, may bias the impact of informality on inclusive growth (see also Chen et al., 2002;Oosthuizen et al., 2016;Traoré & Ouedraogo, 2020;Tumen, 2016). For Oosthuizen et al. (2016) and Oviedo (2009), the prevailing economic condition in a country may influence the impact of informality on inclusive growth. ...
Rising poverty levels in Sub-Saharan Africa requires a better understanding of inclusive growth determinants to develop effective policy responses. Using panel data from 44 Sub-Saharan African countries for the period 1990–2018, we compute measures of inclusive growth based on gender and the rural–urban divide. We account for endogeneity, cross-sectional dependence, and heteroscedasticity, and estimate an inclusive growth model using the instrumental variable generalized method of moments (IV-GMM) estimator. The empirical evidence indicates that the impact of informality on inclusive growth depends on the measure of informality and inclusiveness. Our results show that financial inclusion exhibits an inverted-U-shaped relationship with inclusive growth. Also, we find that the moderating role of financial inclusion in the informality–inclusive growth nexus is mixed. Our results are robust to alternative model specifications and highlight the importance of financial inclusion and informality in influencing inclusive growth in Sub-Saharan Africa.
... Notwithstanding the informal sector's critical role, the literature on planning as a tool for improving the working environment is rare. The literature has only yielded comprehensive knowledge on the role of the informal sector (Nwaka, 2005;Ranis & Stewart, 1999), rethinking (Chen et al., 2002;Maloney, 2004;Rauch, 1991), and health and safety measures (Forastieri, 1999;Kawakami, 2006;Kogi, 2002). The emphasis of the literature has been on the various aspects of informal sector workers' working environment while completely ignoring the role of planning as a tool in improving the working environment of the informal sector workers. ...
The formalization of the informal sector in Ghana can never be achieved without planning the working environment of the informal sector workers. Although studies have touched on various aspects of the informal sector working environment, no review studies are available on the role of planning in the working environment of the informal sector in Ghana. The purpose of this review was to identify the working environment of informal sector workers and highlight the role of planning as a first step in formalizing the sector to improve their working environment. The study is based on descriptive and narrative content analyses of the literature on the working environment of informal sector workers and the role of planning. The analysis revealed that the working environment of the informal sector workers is hazardous, devoid of social protection, and polluted, which poses risks of injuries and diseases to workers thereby undermining their health and well-being. The poor nature of the working environment of the informal sector workers makes the social, spatial, environmental and facilitating roles of planners crucial in the informal sector. Through planning, the informal sector could be sufficiently guided to appreciate the opportunities and challenges in their working environment to find lasting solutions to the inherent health and safety problems. There is a need for government to formulate a national occupational health and safety policy and regulatory framework to regulate the informal sector.
... Informally employed workers are more easily covered with minor amendments to existing labour and social security law. Domestic workers, for example, are now integrated into labour and social security legal frameworks in several countries in Latin America, and in South Africa, where a legal amendment now allows workers with multiple employers to contribute and benefit from co-contributions from these multiple employers to preferential access to markets, as well as supportive urban regulations and infrastructure (Chen et al., 2001). Coherence with social services is also important, particularly where social protection is linked to the provision of services (such as health care) (Holmes and Scott, 2016). ...
In recent years, African governments have made significant efforts to develop a range of contributory social protection schemes that cover workers in the informal economy. This report aims to provide an overview of these extension practices in the region through seven country case studies selected to illustrate the range of emergent design practices. They include the extension of legal and effective coverage; improvements in the quality of benefits and the services provided, alongside the introduction of new schemes; efforts to make informal workers’ contributions more sustainable while remaining affordable and flexible; and leveraging digitalization to simplify administrative procedures.
The report draws attention to the major challenges that lie ahead. There is a strong need for innovative approaches that can quickly be designed and scaled up to expand coverage. More importantly, emerging schemes need greater financial sustainability, which can be achieved through a mix of contributions from employers and businesses along the supply chain, workers and public finance. Formulation process of strategies to cover informal economy workers must include all stakeholders and be coordinated across sectors and ministries. Social protection approach to informality should entail measures that can result in greater and more secure incomes and job quality via business support, low-interest credit and loans and preferential access to markets.
... According to the International Labour Organisation (ILO), there exists a positive association between the dearth of social protection, the levels of informality, and persistent high levels of poverty (Aryeetey, 2015, p. 160;Chen, Jhabvala, & Lund, 2001;ILO, 2014b). However, despite the intersectionality between social protection, informality and poverty, many State actors in developing countries 'claim' to lack the capacity to provide adequate social protection for all workers. ...
In Nigeria, a significant number of the active labour force exists within the informal economy. For these workers, decent work remains elusive. They are mostly unprotected by existing legal framework and lack basic work rights. One of such right is access to social protection. This lack of access to ‘social protection’, especially as it relates to their means of livelihood, results in exclusion and marginalisation, and violates the principles of social justice. However, the high financial and structural costs of providing the basic forms of social protection inhibits the Nigerian government from extending social protection to informal workers, even though they constitute the larger percentage of the national workforce. This therefore necessitates an innovative solution that extends social protection to informal workers, and at the same time is independent of the capacity limitations of the government. Based on a desktop research methodology, this article finds that Esusu cooperatives – an informal cooperative system popular among informal workers– represents an existing and functional structure through which social protection can be extended to Nigerian informal workers. Consequently, it is recommended that the ‘Esusu Cooperative system’ should be adopted and restructured as a means of extending social protection to informal workers.
... Studies that narrated the cases of successful organising experiences have emphasised the attributes of effective organising (see Chen et al., 2002;Jenkins, 2013;Routh, 2015;Bhowmick, 2005). But the list is far from exhaustive. ...
Purpose - In this paper, we used the Social Identity Model of Collective Action (SIMCA) framework of Zomeren, Postmes, and Spears (2008) to explain the organising experiences of the informal sector workers engaged in large number in the world’s largest shipbreaking industry located in the western Indian town of Alang.
Design Methodology - A single case study approach was adopted to understand the participation of shipbreaking workers in their trade union and factors that influence their participation.
Findings - Sense of cohesive collective identity and injustice alongside efficacy considerations have shaped the organising experiences and affected the participation of informal sector workers in their union. The trade union was able to overcome the scourge of invisibility that has been one of the dominant features of informal sector employment.
Research Limitations/Implications – We treated union participation as unidimensional. Besides, the subjective conceptualization of strengths of perceptions of injustice, identities, and efficacy considerations could be a limitation. We do acknowledge the gendered nature of shipbreaking but have not actively pursued it as a part of our research.
Practical Implications The findings of our study are an exemplar for those who intend to organise informal sector workers, especially precarious workers. The empirical findings allude to the role of trade unions in combating the invisibility, which is one of the defining features of informal sector workers through a distinctive, cohesive identity inculcated in those workers.
Originality We have borrowed the SIMCA framework to explore union participation. Organising experiences of precarious workers from the developing world provides a contextual and an empirical novelty to our study.
... While it regularly reiterates the importance of locating social protection within a policy framework linked to wage, employment and labour protections, nothing is said about the need for coherence with trade and urban policies. Yet, as Chen et al. (2001) argue, if promoting income security is the goal, these are crucial linkages for self-employed informal workers for whom wage and labour protections are not directly relevant. A home-based worker producing local crafts will benefit from social protection, but her income would be more secure if she had fairer access to markets and supply-side business support specifically suited to the most micro of 5. Own-account workers are self-employed workers who rely only on their own labour and do not employ others. ...
... Renooy argues that being informal might as well mean that businesses are engaging in illegal activities giving reasons why firms are operating undercover. So legally the businesses are not recognized, do not pay tax and they do not confirm any character of legality but they are not involved in trading of illegal goods as argued by (Chen 2006). ...
South Africa is faced by a growing informal economy with black entrepreneurs constituting the majority. The government has spent large budgets but the size of informal black entrepreneurs remains significantly high. The objective of this paper is to understand the factors behind the formalisation willingness of South African black owned SMMEs. The conversion rate of informal businesses into the formal economy is insignificant considering the potential carried by small businesses in championing the inclusive and sustainable economic growth objective especially when they are formalised. Cross-sectional data was collected using a questionnaire from 390 in Johannesburg and Pretoria using stratified random sampling and clustered sampling. This study employed a multinomial logistic regression. The study found government support, corruption, employment compensation, family labour, success perception, education status, age and financing as key drivers on willingness of SMMEs to formalize their operations. The implications of our findings warrant the government to foster more financial supporting pillars to match up huge volumes of informal business that lack funding opportunities. Institutions of higher learning should also take the initiative of having incubation centres and innovation hubs to facilitate capacity building as that can cultivate willingness to mainstream. The purpose of the study was to find determining factors of positive willingness to mainstream and it very significant as it specifically target black entrepreneurs who are highly concentrated in the informal sector. Finding factors that instigate positive willingness impact on improved graduation rates of SMMEs and that also impact on improved success rate of small business in the country. Improved success rate of small business has positive effects on employment and economic growth.
... While it regularly reiterates the importance of locating social protection within a policy framework linked to wage, employment and labour protections, nothing is said about the need for coherence with trade and urban policies. Yet, as Chen et al. (2001) argue, if promoting income security is the goal, these are crucial linkages for self-employed informal workers for whom wage and labour protections are not directly relevant. A home-based worker producing local crafts will benefit from social protection, but her income would be more secure if she had fairer access to markets and supply-side business support specifically suited to the most micro of 5. Own-account workers are self-employed workers who rely only on their own labour and do not employ others. ...
... s theoretical model (seeRay, 1998) of economic development(1954/1958), in order to explain economic growth in the third world(Godfrey, 2011). He insisted that there was an unlimited supply of labour in most developing countries and that, as the modern industrial sector in these countries grew, this vast pool of surplus labour would be absorbed (seeChen et. al., 2002). ...
Advances in Management & Applied Economics, 9 (5), pp. 35 - 57.
... s theoretical model (seeRay, 1998) of economic development(1954/1958), in order to explain economic growth in the third world(Godfrey, 2011). He insisted that there was an unlimited supply of labour in most developing countries and that, as the modern industrial sector in these countries grew, this vast pool of surplus labour would be absorbed (seeChen et. al., 2002). ...
The last decades, many scholars highlighted the shadow economic activities, regarding their disadvantages (unemployment, impoverishment etc) and advantages (intensifies competition, flexibility in employment etc). During the financial crisis, informal activities rose in noisy way, which triggered the development of special definitions to describe a wide range of actions which in turn have gradually configured and updated the content of the shadow economy term. In this paper we present the theoretical background of the shadow economy term, by selecting the main worldwide literature published from 1973 to 2018. Many studies have tried to definite the shadow economy term but none has ever presented explicitly the adjectives and nouns that are related to shadow economy. Taking into account this analysis it would be useful for the scholars to mention extensively the theoretical background about shadow economy, the critiques towards the school of thoughts, in order to choose the appropriate term in each case and to design and implement the indicative method to estimate the size of the shadow economy.
... The great majority of street vendors represent an obstacle to progress and modernity while others are encouraged. Thus, urban development in this sense does not account for the role of street vending among the urban poor in terms of the provision of employment and a safety net (Chen et al., 2002). ...
Selling goods and providing services in public spaces is one of the most accessible occupations for many urban poor. However, use of public space for such occupations is often prohibited by local regulations, excluding street vendors from legally using this space for their survival. While significant research has been devoted to state efforts to control informality, less is known about the everyday governance of street vendors. This article examines how unorganised street vendors regulate access to public space among themselves. We also analyse the contestation and negotiations between state and street vendors. The article is based on a study of street vendors in Bogotá, Colombia. We argue that informal street vendors do not operate in chaos, instead the ‘quiet encroachment’ of public space is governed by nonhierachical informal social control mechanisms. Our findings call for a reconsideration of regulations about urban informal activities and public spaces.
... The concept "human capital" includes the saved-up stock of knowledge, skills and competences which are possessed by each person for the purpose of their use as a source of future income [4]. As any capital, it needs investments in the person, which represent one of forms of distribution of resources in time when the real benefits in this exchange influence the future [5]. ...
... In a cross-country study of 45 countries, Beck et al. (2005) showed that in developing countries, self-employment through small businesses is likely to be a last resort rather than a first option for many of the reasons discussed above. A common tendency has been to portray the informal sector as low-quality waged work where workers toil for long hours for other employers (Chen et al, 2001). Gurtoo and Williams (2009), critically evaluate this assumption by conducting an empirical survey of informal workers in India. ...
Much of prior literature on the relationship between microfinance and the macro-economy has focused on the effect of the latter in determining the success of microfinance institutions (MFIs). However, the microfinance industry has been underserved in studies evaluating microfinance as a legitimate contributor toward macro-economic growth. Researching this connection would provide a clearer direction for policymakers to support microfinance, and the institutions that foster such activities. This paper investigates the hypothesis that microfinance is not only important to the people at the bottom of the socio-economic pyramid, but for the overall health of a national economy. We explore different mechanisms as to how microfinance could affect the macro-economy, and simultaneously enable the growth of micro, small and medium enterprises (MSMEs), and evaluate the possibility of such scenarios.
Keywords: microfinance, MFIs, financial inclusion, Indian economy, MSMEs, necessity-based entrepreneurship
... The Ghanaian law enforcement authorities' tolerance of these infringements explains this tarn of legal contravention. The authorities are unable or unwilling to 'crack the whip' (Chen, Jhabvala & Lund, 2001). From this analysis, the activities of the entrepreneurs are implanted in a weak law enforcement context where, even though stipulations exist, they are never enforced to effect compliance. ...
This thesis on entrepreneurship of Nigerian immigrants in Ghana, is positioned at the intersection of mixed embeddedness as an explanatory framework for migration and the formation of immigrant entrepreneurship in a developing country context. Leaning on the constructivist epistemology with the empirical base anchored in in-depth interviews and observation data from Accra, the capital of Ghana, Kumasi, the second largest city after Accra, and Ashaiman, a sprawling sub-urban settlement, it argues that the formation of immigrant entrepreneurship can be researched as a form of mixed embeddedness. Moreover, since most research on immigrant entrepreneurship and mixed embeddedness focus on advanced western societies and less reflective of the actualities in developing country contexts, it demonstrates that Nigerian immigrant entrepreneurship in Ghana can be used to understand mixed embeddedness and extend it along the lines of borderlands and transnationalism.
From this view, this thesis defines mixed embeddedness as a multi-level concept that aggregates around four domains, namely the entrepreneurs’ own group characteristics as embeddedness, the Ghanaian context of embeddedness, borderland as context for embeddedness, and transnational embeddedness. First, it shows that the entrepreneurs’ group characteristics such as their culturally produced apprenticeship system and high theocentric orientation together with their variegated network categories, serve as embeddedness for their entrepreneurial practices. Secondly, it demonstrates that, the operation of Nigerian immigrant entrepreneurship in Ghana is conditioned on the Ghanaian-specific characteristics. In specific, they are embedded in the Ghanaian urban/inner city, socio-cultural, economic, political, policy, legal and historical contexts. Thirdly, the study shows that the mixed embeddedness of Nigerian immigrant entrepreneurship in Ghana should be linked to Ghana as a borderland context in which the entrepreneurial behaviours and actions of the immigrants are embedded, shaped and underline their borderland entrepreneurial characteristics. Finally, the entrepreneurs maintain embeddedness in a wider transnational context that is rooted in the contextual conditions of the trans-West African sub-regional economic structure and beyond. These findings contribute to knowledge of immigrant entrepreneurship and the mixed embeddedness approach within a non-western empirical frame, and further opens our understanding through incorporating the notions of borderlands and transnationalism as specifications in mixed embeddedness.
http://minerva.mq.edu.au:8080/vital/access/manager/Repository/mq:70458
... Besides formal employment, informal sector has grown and the contribution of the informal economy to the overall economy is 60 per cent in India (The World Bank 2008;ILO 2002a). The estimate (Rodrik 1997;Planning Commission 2001;Chen et al. 2002;Dev 2000;Marjit 2003;Chaudhari & Banerjee 2007) of informal work force accounts to 93 per cent of the total work force in India. Only two per cent of the Indian workforce has formal vocational training and 80 per cent of workers have acquired skills informally while on the job (Mehrotra 2014b). ...
Informal sector dominates the economic activities of the Asian Counties like India, Bangladesh, Ne-pal, Cambodia, Vietnam and China and so does informal learning. By looking at the percentage of the population occupied in the informal sector, especially street food vending, the present study attempts to unravel the ways in which knowledge and skills acquired in the informal sectors especially street food vending by the individuals. It is field based research. We have collected data for the research from major metropolitans in China, Thailand and India due to the presence of a large number of street food vendors. The interview schedule is prepared based on the informal learning theory. The results of the study revealed that majority of street food vendors in China, Thailand and India acquire much of their knowledge and skills in catering and business management from work experiences. The informal learning from real work experiences instead of formal schooling plays a central role in their skill and knowledge acquisition. The learning happens in different settings like family, community, neighbours and friends. The promotion of non-formal adult learning may strengthen the skill development in the developing and transition countries.
... s theoretical model (seeRay, 1998) of economic development(1954/1958), in order to explain economic growth in the third world(Godfrey, 2011). He insisted that there was an unlimited supply of labour in most developing countries and that, as the modern industrial sector in these countries grew, this vast pool of surplus labour would be absorbed (seeChen et. al., 2002). ...
El mundo contemporáneo ha avanzado, aunque parcialmente, en lo que se refiere al empoderamiento de la mujer, a la par que se ha estancado en la convergencia de los niveles de derechos entre hombres y mujeres. El problema se ha agravado especialmente en las zonas en desarrollo del mundo. Al ser de naturaleza tradicional y patriarcal, la actividad de las mujeres se ha visto limitada a las tareas del hogar que entran en el ámbito de la economía del cuidado. Últimamente, las mujeres han estado haciendo todo lo posible para participar en la economía salarial con el fin de obtener un ingreso independiente. El presente estudio es un intento de analizar el potencial de la economía informal del cuidado como el canal más accesible para que las mujeres sin educación y sin cualificación encuentren un empleo remunerado. El estudio confirma la limitada capacidad de las economías en desarrollo para absorber la educación y las competencias, y crear puestos de trabajo de manera simultánea. El estudio valida aún más el papel positivo y significativo de la economía informal del cuidado en la oferta de empleo a las mujeres, mejorando sus perspectivas y resultados en el curso de la vida. El estudio concluye con algunas recomendaciones de política para permitir que la economía informal del cuidado exista como un camino hacia el mercado laboral formal para las mujeres en el mundo en desarrollo.
Analyses of the informal economy are vital to understanding economic activity in developing countries, but challenges abound when analysing something that is so difficult to measure. In this article, we explore these challenges and what they mean for research and research design in studies of the informal economy. We review key economic theories developed to study the informal economy, before critically discussing the range of methods of data collection available for researchers. All approaches to data collection have limitations, yet many studies fail to reflect adequately on these in their design and presentation. In reviewing data sources for economic analyses of informality, we give particular attention to surveys designed and led by academic researchers, the consideration of which is omitted from leading official organisations' own reports on data collection in the informal economy. In the absence of a unifying theory and data sources that deliver the ‘comprehensive and accurate’ data called for by some authors we argue, first, that no one source of data is intrinsically superior; and second, that research on the informal economy must embrace transparency—around the data used, their alignment with the underlying theory adopted, and the detailed arrangements for data collection and analysis.
This book analyses the question of the right to the city, informal economies and the non-western shape of neoliberal governance in India through a new analytic: the right to sell. The book examines why and how states attempt to curb, control, and eliminate markets of urban informal street vendors. Focusing on Kolkata, the author provides a theoretical explanation of this puzzle by distilling and analysing the inherent tensions among the constitutive elements of neoliberal governance, namely, growth imperative, market activism, and corporatization, and demonstrates its implications for the formal/informal boundaries of the economy. A useful addition to the existing literatures on the right to the city, informal economies, and the shapes that neoliberalism takes in the non-west, the book provides a non-western counter to accounts of neoliberalism and will be of interest to academics working in the fields of South Asian Studies, Urban Studies, and Political Economy.
The chapter describes the origin of the concept of informal sector and development of the concept on the empirical basis in the different countries of the world. Conceptualization of informal sector, informality, and informal employment changed continuously according to the real changes in the society. Informal employment has become more vulnerable, yielded to unprotected unregulated labour and poverty in the countries. The chapter narrates situation in the entire world, with India tracing a different history in the process. Footlooseness of labour has always accompanied informal sector as shown in the different countries.
This paper focuses on the management of COVID-19 by the Government of Odisha by focusing on problems related to lockdown, isolation, quarantine and hospitals beds in Odisha and its neighbouring states. The state government has initiated various measures to contain the spread of the infection through
effective engagement of health workers and information sharing in wider media. This might have resulted in a low case confirmation ratio, low case fatality rate, and a greater recovery and discharge ratio. However, there remain many more challenges before the administration and public health authorities.
Keywords: Hospital beds, Management, Pandemic, Public health, Quarantine,
Odisha
The worrying welfare and political risks of expanding informal economies have put concerns about economic inclusion at the heart of contemporary development thinking — concerns further intensified in the wake of the COVID‐19 pandemic. Amid a collective ‘will to include’, this Debate adopts an infrastructural lens to decipher the distributive and governance implications of the complex institutional, financial and digital linkages through which informal workers and consumers are being included in the circuits of contemporary market economies. Looking beyond imaginaries of seamless linkages, the articles in this Debate examine the specific processes through which these inclusive connections engage with informal actors, focusing on how they work and for whom. Articles focus on various types of inclusive infrastructures that connect deprived communities to jobs, resources and social citizenship, ranging from social protection systems to employment linkages and services for hard‐to‐reach populations. With a view to cutting through the ideological blurring of inclusive discourses, this Introduction will examine the strategies of legibility and regulatory restructuring effected through inclusive infrastructures. It reveals the hidden politics of inclusive linkages, reflects on the techniques of governance operating through socio‐technical connections, and examines processes of resistance and failed connections reworking inclusive infrastructures from below.
The socio-economic factors such as the economic background of members, their affiliations to social sub-groups, cultural back ground, business ethics, inter alia influence the supply of entrepreneurship in a particular region. Moreover, absence of social marginality in an underdeveloped region acts as a hindrance to entrepreneurial behavior. Odisha is such a backward region in India which has exhibited some sign of entrepreneurial orientation among social groups as revealed from MSME and Economic Census data. The present study aims at examining the nature of entrepreneurship of this region.
The paper tries to examine health, social security measures and determinants of earnings by labourers in textile firms of Tirupur in Tamil Nadu. Primary data have been collected from 100 labourers covering 30 textile firms in the month of September–October 2016 through random sampling method. Percentage ratio method and double-log multiple regression techniques are employed to analyse the objectives. It is observed that the labourers who work in textile firms live in unhygienic and deplorable condition without much provision of social security and coverage of health insurance either by the firms or by themselves. Low income is one of the important constraints. Education, working hours and skill training emerged as important factors influencing earnings of labourers. Experience, distance of the firm, migrant variable did not emerge to be significant. Gender bias is persistent in wage determination. With the movement from male to female labourers, on an average, wage decline by 0.46%. Appropriate provision of social security measures, improvement in work environment and checking for gender bias in earnings are necessary through public and legal policy interventions. Basic skill training and educational awareness about various trades and intra-firms’ promotion will help labourers to increase their earnings.
The main objective of micro finance activity is to alleviate poverty and generation of employment for those poor people who were excluded from formal financial services. Malwa region of Madhya Pradesh, India, with a rural population of approximately 13977860 (2001) is a new developing area in terms of Micro Financing. The funding activity has picked up recently but there is lack of proper training to the beneficiaries of micro finance. This research tries to study the present status of micro finance activity by MFIs in Malwa region. By a survey done on sample of borrowers in five villages, the research explores the fact whether the borrowers have an understanding and appreciation for the facility of micro finance being provided to them or not. In this empirical study, the results indicate that majority of the borrowers have a tendency to misutilise the funds borrowed. They treat micro finance funding as just another source for meeting personal expenses. The research has identified this as serious concern for micro finance organizations.
This article will trace the trends regarding job loss and the informalization and casualization of women’s work in the garments and other labor-intensive industries in the ‘higher’ wage countries of Southeast Asia (focusing in particular on the Philippines and Thailand). Using the Philippines and other cases as well as new openings in the wake of the collapse of the Cancun WTO meetings as a means to think through new possibilities the article will argue that in some countries, the specificity of context may offer new opportunities to tie the goal of providing social protection to more general technology and industrial/sectoral policies—as well as related educational and science policies—in ways that can benefit and help stabilize incomes in the ‘people’s sector.’
With the financial crises faced by many developing countries, the effects of structural adjustment programmes, and the failure of the public sector to create the necessary number of jobs to absorb an increasing labour force, informal sector (IS) activities have not decreased. Indeed, they have even expanded, creating jobs more rapidly and effectively than the state ever did. After a brief reminder of the origin and prevailing definitions of the concept of the IS, the second section examines the indirect methods used to estimate employment and production in the IS and some estimates for different regions of the world are given. Major survey types are reviewed, specifically those carried out to gauge the size and profile of the IS. This section includes establishment surveys and household surveys. There are comments on this article by X. Oudin, and H. Bekkers and W. Stoffers on pp 31-36.
‘International labor standards’ are meant to be policy measures aimed at helping poor nations achieve certain minimal living standards. What is remarkable about these measures is that the most consistent opposition to them has come from the alleged beneficiaries. The fear of the poor nations is that labor standards are a facade for hiding the true agenda of developed nations, to wit, that of protectionism. The fear is partly justified. The demand for labor standards, as it stands today, comes overwhelmingly from protectionist lobbies in industrialized nations.
Many developing countries have found that wage earning employment lags behind rapid growth of output. The author believes that this is partly illusory, owing to the fact that large numbers of small urban establishments are never included in the labor force statistics. He sets out to identify and analyze the determinants of growth of output and employment in this ''unenumerated'' sector, drawing a distinction between the informal and the formal sector, which he prefers to the more usual one between a traditional and a modern sector. He proposes an analytical frame work for studying the interaction between the enumerated and unenumerated urban sectors of less developed economies and puts forward a number of policy suggestions whereby growth in the informal sector might be stimulated.
The pensions system in South Africa was first designed for the white population, with the British model in mind. Its scope and coverage were gradually extended to the whole population. In the 1980s and 1990s it became politically inevitable that benefits would have to be equalised, and this has been done. It is in the welfare budget that services for elderly people are of course found. By concentrating on the welfare budget, one can miss the fact that welfare for other categories of people is frequently funded through other budgets. In weighing up the merits of the money spent on pensions or schooling or housing one must also recognise that, like pensions, housing subsidies and schooling outlays contribute to the well-being of whole households, including elderly people. -from Author
This article originated in the study of one Northern Ghanaian group, the Frafras, as migrants to the urban areas of Southern Ghana. It describes the economic activities of the low-income section of the labour force in Accra, the urban sub-proletariat into which the unskilled and illiterate majority of Frafra migrants are drawn.
Price inflation, inadequate wages, and an increasing surplus to the requirements of the urban labour market have led to a high degree of informality in the income-generating activities of the sub-proletariat. Consequently income and expenditure patterns are more complex than is normally allowed for in the economic analysis of poor countries. Government planning and the effective application of economic theory in this sphere has been impeded by the unthinking transfer of western categories to the economic and social structures of African cities. The question to be answered is this: Does the ‘reserve army of urban unemployed and underemployed’ really constitute a passive, exploited majority in cities like Accra, or do their informal economic activities possess some autonomous capacity for generating growth in the incomes of the urban (and rural) poor?
Globalization is exposing social fissures between those with the education, skills, and mobility to flourish in an unfettered world market--the apparent "winners"--and those without. These apparent "losers" are increasingly anxious about their standards of living and their precarious place in an integrated world economy. The result is severe tension between the market and broad sectors of society, with governments caught in the middle. Compounding the very real problems that need to be addressed by all involved, the kneejerk rhetoric of both sides threatens to crowd out rational debate. From the United States to Europe to Asia, positions are hardening. Author Dani Rodrik brings a clear and reasoned voice to these questions.Has Globalization Gone Too Far? takes an unblinking and objective look at the benefits--and risks--of international economic integration, and criticizes mainstream economists for downplaying its dangers. It also makes a unique and persuasive case that the "winners" have as much at stake from the possible consequences of social instability as the "losers." As Rodrik points out, ". . . social disintegration is not a spectator sport--those on the sidelines also get splashed with mud from the field. Ultimately, the deepening of social fissures can harm all." President Clinton read the book and it provided the conceptual basis for the trade/IMF portions of his State of the Union message in January 1998. * Globalization is "the next great foreign policy debate," Thomas Friedman of the New York Times wrote, and he found Has Globalization Gone Too Far? "provocative" on the subject. This book provides a critical definition--and welcome clarity--to that debate.
This paper illustrates the limitations of offical statistics on the informal sector with the case of homebased women workers: this is, women who work from their homes as own-account producers or subcontract workers. After noting that official statistics in most countries do not classify homebased subcontract work as such, the authors review the available data on both types of homebased work. The available evidence suggests that homebased work is an important source of employment throughout the world, especially for women, and that homebased workers comprise a significant share of the workforce in key export industries. The evidence also shows that the informal sector often has direct ties to the formal sector and is growth-promoting. The case of homebased workers, the authors conclude, illustrates the need for improved informal sector statistics as well as a better understanding of the impact of policies on the informal sector and the contribution of the informal sector to national economies.
The “informal sector” is an exceedingly fuzzy concept which has come into wide use because it seemed to address the interests of a number of very diverse groups: those interested in growth planning, those interested in alleviating poverty, Marxist structuralists, and those interested in economic accounting. The use of the concept has been helpful in directing attention to phenomena previously ignored. But adopting the term obscures analysis of central issues and is counterproductive. We should, rather, specify critical policy issues and design field research around these.
Public Policy and the Sustainable Use of Forest Resources: A Study of the Indian Experience of State Intervention in the Forestry Sector
- Manjul Bajaj
Bajaj, Manjul: "Public Policy and the Sustainable Use of Forest Resources: A Study of the Indian
Experience of State Intervention in the Forestry Sector", Dissertation Submitted in Partial Fulfillment of
the Requirements for the MSc Degree in Environmental Managment, Wye College, University of
London., October 1994.
Draft paper prepared for the IDB Conference, Women and Work: A Challenge for Development
- Armando Barrientos
Barrientos, Armando: "Women, Informal Employment, and Social Protection in Latin America."
Draft paper prepared for the IDB Conference, Women and Work: A Challenge for Development.
Santiago, Chile, March 2000.
Research Report for Technical Task Team for the Informal Economy
- Debbie Budlender
Budlender, Debbie: "Budgets and the Informal Economy. Study 4." Research Report for Technical
Task Team for the Informal Economy, Durban North and South Central Local Councils, April 2000.
Informal Sector, Poverty, and Gender: A Review of Empir ical Evidence
- Jacques Charmes
Charmes, Jacques: "Informal Sector, Poverty, and Gender: A Review of Empir ical Evidence."
Background paper commissioned for the WDR 2000/2001. Washington, D.C.: The World Bank,
1998.
Street Vendors in Africa: Data and Methods
- Jacques Charmes
Charmes, Jacques: "Street Vendors in Africa: Data and Methods". New York: United Nations
Statistical Division, 1998.
Testing the boundaries of the informal sector
- John C Cross
- Alfonso Morales
Cross, John C. and Morales, Alfonso: "Testing the boundaries of the informal sector", special issue of
International Journal of Sociology and Social Policy, 2000, vol.20, No.9/10.
Fair Wear in Australia
- Annie Delaney
Delaney, Annie: "Fair Wear in Australia", in HomeNet Newsletter, No. 10, Autumn 1998, pp.8-9.
Leeds, U.K.: HomeNet International, 1998.
First version of this paper was
- Archon Fung
- Dana O'rourke
- Charles Sabel
Fung, Archon, O'Rourke, Dana and Sabel, Charles: "Ratcheting Labour Standards." First version of
this paper was "Open Labour Standards", presented at World Bank Annual Meeting, 1999.
Government of India: Ministry of Textiles Annual Report: 1998-1999. New Delhi, Ministry of
Textiles, Government of India, 1999.
International Labour Office: Employment, Incomes and Equality: A Strategy for Increasing Productive Employment in Kenya
- Ralf Hussmanns
Hussmanns, Ralf: "Technical Note on Definitions relating to Informal Economy". ILO, Geneva,
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Employment in Kenya, pp.223-232. Geneva, 1972.
The Unorganised Sector: Work Security and Social Protection
- Renana Jhabvala
- R K A Subrahmanya
Jhabvala, Renana and Subrahmanya, R.K.A.ed.: The Unorganised Sector: Work Security and Social
Protection. New Delhi: Sage Publications, 2000.
Parallel, Fragmented, and Black: A Taxonomy
- Christine Jones
- David L Lindauer
- Michael Roemer
Jones, Christine, Lindauer, David L and Roemer, Michael: "Parallel, Fragmented, and Black: A
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