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Informal-formal workers' transition in Nigeria: A livelihood analysis


  • Abiodun O. Folawewo
  • Olusegun A. Orija


This study evaluates the effects of the informal sector on Nigerian workers' livelihoods and analyses workers' transitions within the informal sector and between informal and formal employment. A binary logit model is applied to General Household Survey panel data for the periods 2010/11, 2012/13, and 2015/16. We find that informal employment has the greatest impact on workers' livelihoods in terms of earnings. Results also indicate the existence of a high level of dynamic transition of workers within different types of informal employment.

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  • Abiodun O. Folawewo & Olusegun A. Orija, 2020. "Informal-formal workers' transition in Nigeria: A livelihood analysis," WIDER Working Paper Series wp-2020-146, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2020-146

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    References listed on IDEAS

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    4. Italo A. Gutierrez & Krishna B. Kumar & Minhaj Mahmud & Farzana Munshi & Shanthi Nataraj, 2019. "Transitions between informal and formal employment: results from a worker survey in Bangladesh," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 9(1), pages 1-27, December.
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    6. Maciej Beręsewicz & Dagmara Nikulin, 2018. "Informal employment in Poland: an empirical spatial analysis," Spatial Economic Analysis, Taylor & Francis Journals, vol. 13(3), pages 338-355, July.
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    Regression analysis; Employment; Formal and informal; Nigeria; transitions;
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