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Social Security for the Informal Sector: A New Challenge for the Developing Countries

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  • Wouter Van Ginneken

Abstract

Informal sector workers constitute a large and increasing part of the labour force in most developing countries. Many of them are not able or willing to contribute a significant percentage of their incomes to finance formal sector social insurance benefits that do not meet their priority needs. Therefore, informal sector workers themselves need to (and have) set up health and other social insurance schemes that better meet their needs and contributory capacity. In addition, special social assistance schemes are necessary to protect the most vulnerable groups outside the labour force. This article also assesses some key implications of these developments for formal social insurance schemes.

Suggested Citation

  • Wouter Van Ginneken, 1999. "Social Security for the Informal Sector: A New Challenge for the Developing Countries," International Social Security Review, John Wiley & Sons, vol. 52(1), pages 49-69.
    • Handle: RePEc:wly:intssr:v:52:y:1999:i:1:p:49-69
    DOI: 10.1111/1468-246X.00033
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    Cited by:

    1. Jaime SAAVEDRA & Mariano TOMMASI, 2007. "Informality, the State and the social contract in Latin America: A preliminary exploration," International Labour Review, International Labour Organization, vol. 146(3-4), pages 279-309, September.
    2. repec:dau:papers:123456789/13208 is not listed on IDEAS
    3. Pak, Tae-Young, 2021. "What are the effects of expanding social pension on health? Evidence from the Basic Pension in South Korea," The Journal of the Economics of Ageing, Elsevier, vol. 18(C).
    4. Keonhi Son & Tobias Böger, 2021. "The Inclusiveness of Maternity Leave Rights over 120 Years and across Five Continents," Social Inclusion, Cogitatio Press, vol. 9(2), pages 275-287.
    5. Ahmed Raza ul Mustafa & Mohammad Nishat & Asif Ali Abro, 2022. "Social Protection Spending in Context of Structural and Institutional Performance: A Global Empirical Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 875-899, September.
    6. Najat El Mekkaoui de Freitas & Hillary Johnson, 2012. "Formal and Informal Social Protection in Iraq," Working Papers 739, Economic Research Forum, revised 2012.

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