Workers and labour market outcomes of informal jobs in formal employment - March 2014

This report covers the following aspects in: Benin, Ghana, Guinea, Kenya, Madagascar, Niger, Rwanda, Senegal, and Togo. Informal employment; sub-Saharan Africa; social security; self-employment; minimum wages; labour market outcomes; wages; working hours; collective bargaining coverage; job-based informality.

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ABSTRACT:

How can an informal job in formal employment be defined, who has an informal job and what are the labour market outcomes? To explore these research objectives, this paper uses data of comparable face-to-face surveys in nine countries: Benin, Ghana, Guinea, Kenya, Madagascar, Niger, Rwanda, Senegal, and Togo. An index for job-based informality is developed, based on contribution and entitlement to social security and employment status. In all countries, the young and low-educated workers are more likely to hold informal jobs; even more so are workers in micro-enterprises and private industry, and to a lesser extent those in unskilled occupations. Women and men are equally likely to hold informal jobs in formal employment. The more informal, the poorer the labour market outcomes: wages are lower; the chances of being paid below the minimum wage, working more than 48 hours, and not being covered by a collective agreement are higher.


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