Does vulnerable employment alleviate poverty in developing countries?

A vast majority of poor in developing countries resort to vulnerable employment for survival. In the absence of alternate income sources, by providing income-generating opportunities to the poor, vulnerable employment influences their household income and thereby reduces poverty. There is, however, a lack of empirical evidence in this regard. By using data from 65 developing countries from 1995 to 2019, this study examines the poverty-reducing effects of vulnerable employment. Poverty measures include incidence, depth and severity at $1.90 a day and $3.20 a day threshold, and vulnerable employment includes total, male and female participation levels. The findings based on the dynamic panel data analysis suggest that vulnerable employment reduces $1.90 a day poverty marginally and has no effect on poverty at a higher threshold. Further, these effects are gender-specific. The study gains significance in light of developing countries' efforts to reduce poverty (SDG 1) and provide decent work for all (SDG 8).