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Working in the Informal Sector in Togo: Choice or Constraint?

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  • Korem Ayira

    (University of Lome)

Abstract

The paper aims to determine whether working in the informal sector in Togo is a choice or a constraint. Two instrumental variables models (probit and 2SLS) were used to estimate the probability of being satisfied with informal employment. The data used come from the Survey on Transition to Working Life (ETVA) in Togo carried out by the ILO in 2014. The results show that working in the informal sector in Togo is more a constraint than a deliberate choice. In addition, salaried jobs in the informal sector are undesirable, and non-salaried jobs in this sector are chosen. Furthermore, several factors determine the satisfaction of young Togolese in informal employment, notably the salary, the geographical location of the company and the socio-demographic characteristics of the worker. Apart from these classic factors, job security, job flexibility, salary consistency and personal development are factors that also increase the likelihood of being satisfied with one's job in Togo. Thus, any policy targeting the Togolese informal sector should take into account the heterogeneity of this sector for better organisation and formalisation in order to reduce the degree of job insecurity and, in turn, fight against indecent jobs and poverty among young Togolese.

Suggested Citation

  • Korem Ayira, 2022. "Working in the Informal Sector in Togo: Choice or Constraint?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(5), pages 2598-2623, October.
    • Handle: RePEc:pal:eurjdr:v:34:y:2022:i:5:d:10.1057_s41287-021-00468-z
    DOI: 10.1057/s41287-021-00468-z
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    More about this item

    Keywords

    Satisfaction; Informal sector; Instrumental variables; Probit; 2SLS;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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