The multiple indicator-multiple cause (MIMIC) method is a well-established tool for measuring informal economic activity. However, it has been criticized because GDP is used both as a cause and indicator variable. To address this issue, this paper applies for the first time the light intensity approach (instead of GDP). It also uses the Predictive Mean Matching (PMM) method to estimate the size of the informal economy for Sub-Saharan African countries over 24 years. Results suggest that informal economy in Sub-Saharan Africa remains among the largest in the world, although this share has been very gradually declining. It also finds significant heterogeneity, with informality ranging from a low of 20 to 25 percent in Mauritius, South Africa and Namibia to a high of 50 to 65 percent in Benin, Tanzania and Nigeria.
The Global Informal Workforce is a fresh look at the informal economy around the world and its impact on the macroeconomy. The book covers interactions between the informal economy, labor and product markets, gender equality, fiscal institutions and outcomes, social protection, and financial inclusion. Informality is a widespread and persistent phenomenon that affects how fast economies can grow, develop, and provide decent economic opportunities for their populations. The COVID-19 pandemic has helped to uncover the vulnerabilities of the informal workforce.
The promotion of social protection in Sub-Saharan Africa happens in a context where informal labour markets constitute the norm, and where most workers live uncertain livelihoods with very limited access to official social protection. The dominant social protection agenda and the associated literature come with an almost exclusive focus on donor and state programmes even if their coverage is limited to small parts of the populations – and in no way stands measure to the needs. In these circumstances, people depend on other means of protection and cushioning against risks and vulnerabilities including different forms of collective self-organizing providing alternative forms of social protection. These informal, bottom-up forms of social protection are at a nascent stage of social protection discussions and little is known about the extent or models of these informal mechanisms. This book seeks to fill this gap by focusing on three important sectors of informal work, namely: transport, construction, and micro-trade in Kenya and Tanzania. It explores how the global social protection agenda interacts with informal contexts and how it fits with the actual realities of the informal workers. Consequently, the authors examine and compare the social protection models conceptualized and implemented ‘from above’ by the public authorities in Tanzania and Kenya with social protection mechanisms ‘from below’ by the informal workers own collective associations. The book will be of interest to academics in International Development Studies, Political Economy, and African Studies, as well as development practitioners and policy communities.
This book uses household surveys in five countries of Sub-Saharan Africa to describe employment off the farm in the region s growing informal sector and assesses how different forms of education and training, including apprenticeships, influence choices in employment and earnings.
This timely book makes accessible to a broad audience the ideas, principles and practicalities of establishing effective social protection in Africa. It focuses on the major shift in strategy for tackling hunger and vulnerability, from emergency responses mainly in the form of food transfers to predictable cash transfers to the chronically poorest social groups. The first part of the book comprises nine theme chapters, covering vulnerability, targeting, delivery, coordination, cost-effectiveness, market impacts, and asset effects, while the second part consists of fifteen social protection case studies. The continuous interplay between these two parts makes for a unique contribution to the contemporary literature on social protection. The book takes a positive and forward looking view regarding the feasibility of achieving successful social transfers to the poorest in Africa; nevertheless, a critical stance is taken where appropriate, and unresolved strategic issues regarding the targeting, coverage and scale of social transfers are highlighted. Social Protection in Africa is an essential read for personnel, advisors and consultants working for aid donors, United Nations agencies, NGOs and governments on social transfer programmes in sub-Saharan African countries. In addition, the book represents a valuable resource for training courses on social protection, and will be vital reading for Masters level students and researchers studying emergency relief, social protection, vulnerability and poverty reduction in low-income countries.
This publication examines the need to expand social protection coverage of the informal sector to support working age productivity, reduce vulnerability, and improve economic opportunity. Case studies from Bangladesh, the People's Republic of China, India, Indonesia, Pakistan, the Philippines, and Thailand offer suggestions to close social protection gaps and recommend policy solutions to create equitable and inclusive social protection programs for informal workers.
This landmark volume brings together leading scholars in the field to investigate recent conceptual shifts, research findings and policy debates on the informal economy as well as future challenges and directions for research and policy. Well over half of the global workforce and the vast majority of the workforce in developing countries work in the informal economy, and in countries around the world new forms of informal employment are emerging. Yet the informal workforce is not well understood, remains undervalued and is widely stigmatised. Contributors to the volume bridge a range of disciplinary perspectives including anthropology, development economics, law, political science, social policy, sociology, statistics, urban planning and design. The Informal Economy Revisited also focuses on specific groups of informal workers, including home-based workers, street vendors and waste pickers, to provide a grounded insight into disciplinary debates. Ultimately, the book calls for a paradigm shift in how the informal economy is perceived to reflect the realities of informal work in the Global South, as well as the informal practices of the state and capital, not just labour. The Informal Economy Revisited is the culmination of 20 years of pioneering work by WIEGO (Women in Informal Employment: Globalizing and Organizing), a global network of researchers, development practitioners and organisations of informal workers in 90 countries. Researchers, practitioners, policy-makers and advocates will all find this book an invaluable guide to the significance and complexities of the informal economy, and its role in today’s globalised economy. The Open Access version of this book, available at https://www.taylorfrancis.com/books/e/9780429200724, has been made available under a Creative Commons Attribution-Non Commercial-No Derivatives 4.0 license
This companion report to the World Development Report (WDR) 2019: The Changing Nature of Work addresses the key themes of creating productive jobs and addressing the needs of those left behind. It builds on and contextualizes some of WDR 2019's main messages to key specificities of the sub-Saharan Africa (SSA) region. It focuses on how global trends especially the adoption of digital technologies (DTs) may change the nature of work in SSA by creating new opportunities and challenges. The report is structured around three main issues that will shape the future of work in Africa, namely the human capital needs of a young and rapidly growing largely low-skilled labor force, the prevalence of informal workers and enterprises and the social protection policies to mitigate risks resulting from disruptions to labor markets. The report highlights important unanswered policy questions where new research, supplemented by new data, could yield learnings with high policy payoffs in the SSA context.
