Growth, Informal Sector Employment and Poverty

2011 ◽  
Vol 16 (02) ◽  
pp. 199-211 ◽  
Author(s):  
DIBYENDU MAITI ◽  
ARUP MITRA

This paper makes an attempt to estimate the index of informal sector employment that can be attributed to the supply-push phenomenon. Factors explaining the inter-state variations in this index include the industrial-informal sector wage gap, revenue expenditure and development expenditure incurred by the government. Increased development expenditure brings a decline in distress-led informalization because education, health and infrastructure facilities tend to enhance the employability of an individual. However, education as such does not reduce the residual absorption in the informal sector unless there is improvement in quality. The paper also notes an increase in inequality with an increase in distress-led informalization. Adoption of labor intensive technology in the organized or formal industrial sector is indeed crucial for pro-poor growth. The other policy implication is in terms of enhanced investment in the areas of human capital formation and overall development of the region.


2017 ◽  
Vol 32 (6) ◽  
pp. 525-538 ◽  
Author(s):  
John Foster ◽  
Mihalis Chasomeris

Car guarding is a distinctly South African informal sector employment activity. A car guard offers to guard vehicles in a public or private parking area for a donation. Car guarding enables an unemployed person to earn some income. The purpose of this study is to examine car guarding as a livelihood in the informal sector. This study interviews 30 car guards at six different locations in Durban, South Africa. It examines their demographic characteristics, income, education and skills, risks and challenges faced, and the opinion of car guards regarding their livelihood. The average car guard worked six days per week and an average of nine hours per day. The average income per hour ranged from ZAR4.64 to ZAR30. Average daily incomes ranged from ZAR50 to ZAR350. Car guarding is a high risk activity that includes health risks, and risks of verbal abuse and violence.


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