Workers and labour market outcomes of informal jobs in formal establishments. A job-based informality index for nine sub-Saharan African countries

Type Journal Article - The European Journal of Development Research
Title Workers and labour market outcomes of informal jobs in formal establishments. A job-based informality index for nine sub-Saharan African countries
Author(s)
Volume 27
Issue 5
Publication (Day/Month/Year) 2015
Page numbers 868-886
URL http://link.springer.com/article/10.1057/ejdr.2014.73
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 jobbased
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

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