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Workers and Labour Market Outcomes of Informal Jobs in Formal Establishments. A Job-based Informality Index for Nine Sub-Saharan African Countries

Author

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  • Kea Tijdens

    (Amsterdam Institute for Advanced Labour Studies (AIAS), University of Amsterdam, The Netherlands; E-mails: J.Besamusca@uva.nl; M.vanKlaveren@uva.nl)

  • Janna Besamusca

    (Amsterdam Institute for Advanced Labour Studies (AIAS), University of Amsterdam, The Netherlands; E-mails: J.Besamusca@uva.nl; M.vanKlaveren@uva.nl)

  • Maarten van Klaveren

    (Amsterdam Institute for Advanced Labour Studies (AIAS), University of Amsterdam, The Netherlands; E-mails: J.Besamusca@uva.nl; M.vanKlaveren@uva.nl)

Abstract

How can an informal job in formal establishments be defined? Who has an informal job? What are the labour market outcomes? This article uses data of comparable face-to-face surveys in nine countries: Benin, Ghana, Guinea, Kenya, Madagascar, Niger, Rwanda, Senegal and Togo. An index for job-based informality is developed, based on employment status and contribution and entitlement to social security. Young and low-educated workers are more likely to hold informal jobs; even more so are workers in small enterprises, in trade, transport and hospitality, and in unskilled occupations, while workers in skilled occupations and with high education are less likely to hold informal jobs. No evidence is found regarding gendered effects. The more informal, the poorer the labour market outcomes: wages are lower, while the chances are higher of being paid below the minimum wage, working more than 48 hours and not being covered by a collective agreement.

Suggested Citation

  • Kea Tijdens & Janna Besamusca & Maarten van Klaveren, 2015. "Workers and Labour Market Outcomes of Informal Jobs in Formal Establishments. A Job-based Informality Index for Nine Sub-Saharan African Countries," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 27(5), pages 868-886, December.
    • Handle: RePEc:pal:eurjdr:v:27:y:2015:i:5:p:868-886
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    Cited by:

    1. Floridi, A. & Wagner, N. & Cameron, J., 2016. "A study of Egyptian and Palestine trans-formal firms – A neglected category operating in the borderland between formality and informality," ISS Working Papers - General Series 619, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    2. Andes Chivangue & Carlos Barros, 2017. "Poverty and Informal Trade," CEsA Working Papers 151, CEsA - Centre for African and Development Studies.
    3. Floridi, A. & Demena, B.A. & Wagner, N., 2019. "Shedding light on the shadows of informality," ISS Working Papers - General Series 642, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    4. James Sumberg & Justin Flynn & Philip Mader & Grace Mwaura & Marjoke Oosterom & Robert Sam‐Kpakra & Ayodele Ibrahim Shittu, 2020. "Formal‐sector employment and Africa's youth employment crisis: Irrelevance or policy priority?," Development Policy Review, Overseas Development Institute, vol. 38(4), pages 428-440, July.
    5. Floridi, Andrea & Demena, Binyam Afewerk & Wagner, Natascha, 2020. "Shedding light on the shadows of informality: A meta-analysis of formalization interventions targeted at informal firms," Labour Economics, Elsevier, vol. 67(C).

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