The informal economy in Algeria: New insights using the MIMIC approach and the interaction with the formal economy

Background: There are approximately two billion workers in the informal economy globally. Compared to workers in the formal economy, these workers are often marginalised with minimal or no benefits from occupational health and safety regulations, labour laws, social protection and/or health care. Thus, informal economy workers may have higher occupational health risks compared to their formal counterparts. Our objective was to systematically review and meta-analyse evidence on relative differences (or inequalities) in health services use and health outcomes among informal economy workers, compared with formal economy workers. Methods: We searched PubMed and EMBASE in March 2020 for studies published in 1999–2020. The eligible population was informal economy workers. The comparator was formal economy workers. The eligible outcomes were general and occupational health services use, fatal and non-fatal occupational injuries, HIV, tuberculosis, musculoskeletal disorders, depression, noise-induced hearing loss and respiratory infections. Two authors independently screened records, extracted data, assessed risk of bias with RoB-SPEO, and assessed quality of evidence with GRADE. Inverse variance meta-analyses were conducted with random effects. Results: Twelve studies with 1,637,297 participants from seven countries in four WHO regions (Africa, Americas, Eastern Mediterranean and Western Pacific) were included. Compared with formal economy workers, informal economy workers were found to be less likely to use any health services (odds ratio 0.89, 95% confidence interval 0.85–0.94, four studies, 195,667 participants, I2 89%, low quality of evidence) and more likely to have depression (odds ratio 5.02, 95% confidence interval 2.72–9.27, three studies, 26,260 participants, I2 87%, low quality of evidence). We are very uncertain about the other outcomes (very-low quality of evidence). Conclusion: Informal economy workers may be less likely than formal economy workers to use any health services and more likely to have depression. The evidence is uncertain for relative differences in the other eligible outcomes. Further research is warranted to strengthen the current body of evidence and needed to improve population health and reduce health inequalities among workers.

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Evaluating working conditions in the informal economy: Evidence from the 2015 European Working Conditions Survey

International Sociology ◽

10.1177/0268580919836666 ◽

2019 ◽

Vol 34 (3) ◽

pp. 281-306 ◽

Cited By ~ 6

Author(s):

Colin C Williams ◽

Ioana Alexandra Horodnic

Keyword(s):

Logistic Regression ◽

Regression Analysis ◽

Working Conditions ◽

Logistic Regression Analysis ◽

Informal Economy ◽

Mixed Effects ◽

Policy Implications ◽

Formal Economy ◽

European Working ◽

European Working Conditions Survey

Although it is widely held that working conditions in the informal economy are worse than in the formal economy, little evidence has been so far provided. The aim of this article is to fill this lacuna by comparing the working conditions of informal employees with formal employees using the 2015 European Working Conditions Survey. Multilevel mixed-effects logistic regression analysis provides a nuanced and variegated appreciation of which working conditions are worse for informal employees, which are no different, and which are better for informal than formal employees. The article concludes by discussing the theoretical and policy implications.

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An Estimation of the Informal Economy in Morocco

International Journal of Economics and Finance ◽

10.5539/ijef.v8n9p140 ◽

2016 ◽

Vol 8 (9) ◽

pp. 140 ◽

Cited By ~ 1

Author(s):

Othmane Bourhaba ◽

Hamimida Mama

Keyword(s):

Informal Sector ◽

Informal Economy ◽

Tax Burden ◽

Positive Tendency ◽

Mimic Approach

<p>The paper attempts to both measure the size of the informal economy in Morocco and knows its tendency through the MIMIC approach. We calculated the size of the informal economy during the period 1999-2015. Our estimates show that this hidden part of economy constitutes 42.9% of the official GDP in 2015, and also show that there is a growth and a positive tendency of the informal economy in Morocco. The rise of corruption, the growth of the rate of urbanization and the tax burden play a determinant role in the magnification of the informal sector in Morocco.</p>

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The Informal Economy and Social Programs in Mexico: A Critique

Latin American Perspectives ◽

10.1177/0094582x17726081 ◽

2017 ◽

Vol 45 (1) ◽

pp. 130-145

Author(s):

Tamar Diana Wilson

Keyword(s):

Informal Economy ◽

Social Protest ◽

Cash Transfer ◽

Social Programs ◽

Transfer Program ◽

Seguro Popular ◽

Neoliberal Reforms ◽

Formal Economy ◽

The World Bank ◽

Capital Humano

In the wake of neoliberal reforms that devastated the country, Mexico and the World Bank converged on providing at least two social programs in the guise of “humanitarian” capitalism. Progresa, also known as Oportunidades and more recently Prospera, involves a workfare-based cash transfer program aimed at enhancing the human capital of future generations. The program has been criticized for its exploitation of the work of mothers. Seguro Popular involves extending basic health care to those employed in the informal economy. Both, with all their weaknesses and exploitative aspects, serve the function of providing skills and enhanced health status to the subproletariat in the hope that a competitive formal economy will expand and employ them; they are also intended to mute social protest. A raíz de las reformas neoliberales que devastaron el país, México y el Banco Mundial acordaron la creación de por lo menos dos programas sociales disfrazados como capitalismo “humanitario.” Progresa, también conocido como Oportunidades y más recientemente Prospera, es un programa de asistencia de transferencia de efectivo dirigido a mejorar el capital humano de futuras generaciones, y ha sido criticado por explotar el trabajo materno. El Seguro Popular extiende servicios de atención de salud básica a los empleados en la economía informal. Ambos, con todas sus debilidades y características explotadoras, tienen por objeto mejorar las habilidades y estado de salud del sub-proletariado, con la esperanza de que se amplíe una economía competitiva formal que los emplee. También buscan silenciar las protestas sociales.

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The size of the informal economy in Nigeria: a structural equation approach

International Journal of Social Economics ◽

10.1108/ijse-12-2019-0747 ◽

2020 ◽

Vol 47 (8) ◽

pp. 1063-1078

Author(s):

Roberto Dell'Anno ◽

Omobola Adu

Keyword(s):

Informal Economy ◽

Structural Equation ◽

Design Methodology ◽

Total Population ◽

National Bureau ◽

Equation Approach ◽

Content Type ◽

Multiple Indicators ◽

Mimic Approach ◽

Official Estimate

PurposeThis paper contributes to the literature concerning the Nigerian informal economy (IE) by estimating its size from 1991 to 2017 and identifying the major causes.Design/methodology/approachA structural equation approach in the form of the multiple indicators multiple causes (MIMIC) method is used to estimate the size of the Nigerian IE.FindingsThe results indicate that vulnerable employment and urban population as a percentage of the total population are the main drivers of the IE in Nigeria. The IE in Nigeria ranges from 38.83% to 57.55% of gross domestic product (GDP).Research limitations/implicationsAs a result of the empirical challenges in the estimation of the IE, the estimates of Nigeria's IE are considered to be rough estimates.Originality/valueThe authors calibrated the MIMIC model with the official estimate of the informal sector published by the Nigerian National Bureau of Statistics (NBS). This was an attempt to combine the national accounting approach, to estimate the size of IE, with the MIMIC approach, and to estimate the trend of informality.

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Entry and Stay in the Informal Economy: Qualitative Findings from a Least Developed Country

Journal of Enterprising Culture ◽

10.1142/s0218495819500055 ◽

2019 ◽

Vol 27 (02) ◽

pp. 115-145 ◽

Cited By ~ 3

Author(s):

Gorah K. Abdallah ◽

Emiel L. Eijdenberg

Keyword(s):

Informal Economy ◽

Qualitative Data ◽

Personal Narratives ◽

Capital Requirements ◽

Developed Country ◽

Individual Interviews ◽

Formal Economy ◽

Micro Level ◽

Low Levels ◽

Entrepreneurial Activities

This study explores the factors determining the entry and stay of entrepreneurs in the informal economy in a Least Developed Country (LDC): Tanzania. Qualitative data from a focus group with six experts, and individual interviews with two experts and 15 entrepreneurs from the informal economy, were analysed. The results show that (1) necessity motivations are important for the entry and stay of entrepreneurs, as well as (2) the unattractive factors of the formal economy (e.g. degree of excessive regulations regarding high taxes)/attractive factors of the informal economy (e.g. little procedures, low capital requirements) and (3) low levels of education possessed by entrepreneurs, emerged as essential. This study enriches the literature with personal narratives of entrepreneurial activities from the micro level. Therefore, many detailed factors are revealed of the lives of entrepreneurs and experts, dealing in one way or the other with the informal economy.

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ENTREPRENEURIAL DRIVE AND THE INFORMAL ECONOMY IN CAMEROON

Journal of Developmental Entrepreneurship ◽

10.1142/s1084946714500241 ◽

2014 ◽

Vol 19 (04) ◽

pp. 1450024 ◽

Cited By ~ 8

Author(s):

CHRISTOPHER F. ACHUA ◽

ROBERT N. LUSSIER

Keyword(s):

Informal Economy ◽

Developing Economies ◽

Policy Implications ◽

Future Research ◽

Structured Interviews ◽

Face To Face ◽

Formal Economy ◽

Curve Effect ◽

Street Corner ◽

Do So

There is a growing appreciation for the value and impact of the informal economy on the lives and livelihood of many in developing economies. A key question for researchers has been whether those operating in it do so out of necessity or voluntarily as opportunity seekers? Unlike previous studies that have examined the informal economy as one large block, this paper took a slightly different tangent. First, we analyzed and identified three distinct sub-groups within the informal entrepreneurial sector — the street walker (st. walker), the street corner (st. corner) and store owner (st. owner) — and then examined each group's motives. Reporting the results of face-to-face structured interviews with 200 informal entrepreneurs in Cameroon (West Africa), the finding is that the majority, especially st. walker and st. corner informal entrepreneurs, are predominantly necessity-driven while st. owner entrepreneurs are predominantly opportunity-driven. Our study also revealed a progression pattern whereby st. walkers do progress to st. corner and ultimately to st. owner entrepreneurs. The assumption is that this does create a learning curve effect in the entrepreneurial abilities and effectiveness of store owners. This is an area for future research. There are policy implications for institutional support that can grow the informal economy into the formal economy.

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EVALUATING THE IMPACTS OF STARTING UP UNREGISTERED ON FIRM PERFORMANCE IN AFRICA

Journal of Developmental Entrepreneurship ◽

10.1142/s1084946717500170 ◽

2017 ◽

Vol 22 (03) ◽

pp. 1750017 ◽

Cited By ~ 4

Author(s):

COLIN C. WILLIAMS ◽

ABBI M. KEDIR

Keyword(s):

Firm Performance ◽

World Bank ◽

Productivity Growth ◽

Informal Economy ◽

Poor Performance ◽

Policy Implications ◽

African Countries ◽

Formal Economy ◽

World Bank Enterprise Survey ◽

Enterprise Survey

The aim of this paper is to contribute to an understanding of the entrepreneurship process in Africa by evaluating the link between starting up unregistered and future firm performance. The widespread assumption has been that firms starting up unregistered in the informal economy suffer from poor performance compared to those starting up registered and in the formal economy. To test this poorer performance thesis, World Bank Enterprise Survey (WBES) data is evaluated from across 41 African countries covering the period from 2006 to 2013. Controlling for a comprehensive set of other determinants of firm performance, the finding is that formal enterprises with five or more employees that started up unregistered have significantly higher annual sales, employment and productivity growth rates compared with those firms that registered their operations at startup. The paper concludes by discussing the theoretical and policy implications of this finding.

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When informality meets formality: evidence from China

Chinese Management Studies ◽

10.1108/cms-03-2017-0055 ◽

2018 ◽

Vol 12 (1) ◽

pp. 184-201 ◽

Cited By ~ 2

Author(s):

Kun (Michelle) Yang ◽

Michael J. Pisani

Keyword(s):

Informal Economy ◽

Institutional Environment ◽

Geographical Location ◽

Business Environment ◽

Cross Sectional Survey ◽

Cross Sectional ◽

Content Type ◽

Formal Economy ◽

Structural Inertia ◽

The Impact

Purpose This study aims to explore “what impact does competition from informal enterprises have on formal firms” within the Chinese economic and business environment. Design/methodology/approach The paper opted for an exploratory study utilizing the cross-sectional survey data “2012 China Enterprise Survey” conducted by the World Bank. The survey is composed of approximately 200 business-related questions across the spectrum of business operations. In all, 2,700 privately owned Chinese firms are included in the logistic regression analysis. Findings Results show the impact of informal firm competition upon formal firms in China are influenced by geographical location, industry sector, ownership profile, governmental ownership, online presence and the extent of obeying labor regulations or the time spent in handling the governmental regulatory environment. There is a competitive and complementary simultaneous intertwined relationship between formal and informal economy. It occurs in a formal economy not fully divorced from the structural inertia of the planned economy as it transitions to a market-based economy. Practical implications This paper extended the assumption of institutional theory and presented it as a dynamic view of the evolution of organizations. It contributes by offering a simultaneous dual relationship between the formal and informal economy. It also adds one more potential feature of populations in the population ecology theory. Originality/value This exploratory paper empirically examines the impacts of informal sector enterprises on formal sectors firms in China and proposes a dual force effect of the informal economy to the formal economy given the current Chinese institutional environment. The study also provides a platform for further research on the interactions between the formal and informal sectors in emerging markets.

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Systematic Review of Informal Urban Economies

Sustainability ◽

10.3390/su132011414 ◽

2021 ◽

Vol 13 (20) ◽

pp. 11414

Author(s):

Mpendulo Harold Thulare ◽

Inocent Moyo ◽

Sifiso Xulu

Keyword(s):

Systematic Review ◽

Informal Economy ◽

Review Paper ◽

Research Papers ◽

Urban Informality ◽

Urban Economic ◽

Formal Economy ◽

Current State ◽

The World ◽

Integrate Research

Amid globalization and market liberalization, urban informality has continued to grow in leaps and bounds in many parts of the world. Against this backdrop, the purpose of this paper is to provide a systematic review of studies conducted on urban economic informality at various geopolitical contexts to provide an update on the current state of knowledge in the urban informal economy-related research. A total number of 290 studies were sourced from various academic sources; however, a total number of 166 research papers satisfied the requirements of this review paper. The findings of this paper show that research on the urban informal economy has grown from 2000 to 2021, which is a 22-year period in which this review paper was based. The main themes of urban economic informality research depict it as a multifaceted system that is constituted by inputs, processes and outputs that have linkages with the formal economy. Based on these findings, it is recommended that more research should focus on how to integrate research on urban economic informality into the broader agenda of sustainable development.

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