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Pension Coverage and Informal Sector Workers: International Experiences

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Author Info
Yu-Wei Hu
Fiona Stewart

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Abstract

Pension reform around the world in recent decades has focused mainly on the formal sector. Consequently, many of those working in the informal sector have been left out of structured pension arrangements, particularly in developing countries – a serious problem given this group are often low income earners, vulnerable to economic volatility and change. However, since the turn of the millennium, efforts in a range of countries have increasingly highlighted improving pension coverage for informal sector workers. This paper provides an overview of selected country experience in this regard, and provides some suggestions for governments in developing countries considering implementing their own pension reform to ensure that informal sector workers receive the retirement income they need.

La couverture des travailleurs du secteur informel par les systèmes de retraite : expériences au niveau international
Les réformes des systèmes de retraite mises en oeuvre dans le monde au cours des dernières décennies étaient surtout centrées sur le secteur formel. Beaucoup de travailleurs du secteur informel sont donc restés à l'écart des régimes de retraite institutionnalisés, en particulier dans les pays en développement, ce qui constitue un problème grave étant donné que ce groupe est souvent composé de travailleurs à faibles revenus, vulnérables face à l'instabilité et au changement économiques. Cela étant, depuis le passage au nouveau millénaire, un certain nombre de pays se sont de plus en plus attachés à améliorer la couverture des travailleurs du secteur informel par les systèmes de retraite. Le présent document donne un aperçu de l'expérience de quelques pays à cet égard et formule, à l'intention des gouvernements de pays en développement qui envisagent la mise en place d'une réforme des retraites, des suggestions visant à ce que les travailleurs du secteur informel bénéficient d'un revenu suffisant au moment de la retraite.

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Publisher Info
Paper provided by OECD, Directorate for Financial and Enterprise Affairs in its series OECD Working Papers on Insurance and Private Pensions with number 31.

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Date of creation: Jan 2009
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Handle: RePEc:oec:dafaab:31-en

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Related research
Keywords: compulsion; financial education; incentives; informal sector; micro finance; non-contributory; pension coverage; social assistance; aide sociale; couverture des systèmes de retraite; éducation financière; incitations; micro-finance; non contributif; secteur informel;

Find related papers by JEL classification:
G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
G23 - Financial Economics - - Financial Institutions and Services - - - Pension Funds; Other Private Financial Institutions
G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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This page was last updated on 2009-11-17.

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