scholarly journals Enforcement of Labor Regulation and Informality

2012 ◽  
Vol 4 (3) ◽  
pp. 64-89 ◽  
Author(s):  
Rita Almeida ◽  
Pedro Carneiro
Keyword(s):  
Wage Distribution ◽  
Wage Rigidity ◽  
Labor Regulation ◽  
Formal Sector ◽  
Informal Workers ◽  
Labor Regulations ◽  
Mandated Benefits

Enforcement of labor regulations in the formal sector may drive workers to informality because they increase the costs of formal labor. But better compliance with mandated benefits makes it attractive to be a formal employee. We show that, in locations with frequent inspections, workers pay for mandated benefits by receiving lower wages. Wage rigidity prevents downward adjustment at the bottom of the wage distribution. As a result, lower paid formal sector jobs become attractive to some informal workers, inducing them to want to move to the formal sector. (JEL J31, J63, J88, K31, O15)

scholarly journals Social Security Enrollment as an Indicator of State Fragility and Legitimacy: A Field Experiment in Maghreb Countries

2021 ◽  
Vol 10 (7) ◽  
pp. 266
Author(s):  
Walid Merouani ◽  
Claire El Moudden ◽  
Nacer Eddine Hammouda
Keyword(s):  
Labor Market ◽  
Social Security ◽  
Social Insurance ◽  
Discrete Choice Models ◽  
Formal Sector ◽  
Social Security Systems ◽  
State Fragility ◽  
Informal Workers ◽  
Informal Labor ◽  
State Legitimacy

State legitimacy and effectiveness can be observed in the state’s approach to delivering welfare to citizens, thus mitigating social grievances and avoiding conflicts. Social security systems in the Maghreb countries are relatively similar in their architecture and aim to provide social insurance to all the workers in the labor market. However, they suffer from the same main problem: a low rate of enrollment of workers. Many workers (employees and self-employed) work informally without any social security coverage. The issue of whether informal jobs are chosen voluntarily by workers or as a strategy of last resort is controversial. Many authors recognize that the informal sector is heterogeneous and assume that it is made up of (1) workers who voluntarily choose it, and (2) others who are pushed into it because of entry barriers to the formal sector. The former assumption tells us much about state legitimacy/attractiveness, and the latter is used to inform state effectiveness in delivering welfare. Using the Sahwa survey and discrete choice models, this article confirms the heterogeneity of the informal labor market in three Maghreb countries: Algeria, Morocco, and Tunisia. Furthermore, this article highlights the profiles of workers who voluntarily choose informality, an aspect that is missing from previous studies. Finally, this article proposes policy recommendations in order to extend social security to informal workers and to include them in the formal labor market.

scholarly journals Immigration, Wages and Employment under Informal Labor Markets

2021 ◽  
Author(s):  
Lukas Delgado-Prieto
Keyword(s):  
Labor Markets ◽  
Formal Sector ◽  
Informal Workers ◽  
Informal Labor ◽  
Wage Effect ◽  
Wage Effects ◽  
Market Impacts ◽  
Negative Effect ◽  
Informal Labor Markets ◽  
High Degree

This paper studies the labor market impacts of a massive inflow of Venezuelans in Colombia. By comparing areas that received different shares of migrants, I find a negative effect on wages and on local employment for natives. The negative wage effect is driven by a large drop of wages in the informal sector, where migrants are mostly employed, while the negative employment effect is driven by a reduction of employment in the formal sector, where the minimum wage is binding. To explain these results, I develop a model in which firms hire formal and informal workers with different costs. If these workers have a high degree of substitutability, and wages for formal workers are rigid, firms reallocate formal to informal employment as a response to lower informal wages. In settings with informal labor markets migration can therefore lead to asymmetric employment and wage effects across the informal and formal sectors.

scholarly journals Kebijakan Pemerintah Dalam Percepatan Penanganan Dampak Covid 19 Di Kota Denpasar

2020 ◽  
Vol 3 (2) ◽  
pp. 34-39
Author(s):  
I Nyoman Artayasa
Keyword(s):  
Government Policy ◽  
Negative Impact ◽  
Positive Impact ◽  
City Government ◽  
Formal Sector ◽  
Informal Workers ◽  
Cash Assistance ◽  
New Type ◽  
The Impact ◽  
The City

A Corona abstract Virus is a new type of coronavirus that is contagious to humans. The Virus can attack anyone, whether it is infants, children, adults, seniors, pregnant women, and nursing mothers.This viral infection is called COVID-19 and was first discovered in the city of Wuhan, China, at the end of December 2019The Virus is contagious rapidly and has spread to other regions in China and to several coun- tries, including Indonesia.The positive impact is more concerned with the health of all worlds in collaboration with each other.Air quality improved. Negative impact. Hoard food; Price of goods rose mainly masks, sanitizer, temperature gauge to the drug, purchasing power down, debt skyrocketed; Revenue decreased due to redeployed, can not pay installments to the bank on time; School and college fees increase to support learning with technology.Denpasar city government policy in accelerating the impact handling Covid 19 in Denpasar City:Program, the help of basic cash assistance to employees of the formal sector, the direct assistance of cash to the informal workers

scholarly journals The Trade-Offs of Welfare Policies in Labor Markets with Informal Jobs: The Case of the “Seguro Popular” Program in Mexico

2014 ◽  
Vol 6 (4) ◽  
pp. 71-99 ◽  
Author(s):  
Mariano Bosch ◽  
Raymundo M. Campos-Vazquez
Keyword(s):  
Health Coverage ◽  
Formal Sector ◽  
Seguro Popular ◽  
Welfare Policies ◽  
Informal Workers ◽  
Formal Economy ◽  
Trade Offs ◽  
Negative Effect ◽  
Mexican Government ◽  
Medium Firms

In 2002, the Mexican government began an effort to improve health access to the 50 million uninsured in Mexico, a program known as Seguro Popular (SP). The SP offered virtually free health insurance to informal workers, altering the incentives to operate in the formal economy. We find that the SP program had a negative effect on the number of employers and employees formally registered in small and medium firms (up to 50 employees). Our results suggest that the positive gains of expanding health coverage should be weighed against the implications of the reallocation of labor away from the formal sector. (JEL E26, I13, I18, I38, J46, O15, O17)

scholarly journals TENAGA KERJA SEKTOR FORMAL DAN INFORMAL DI KABUPATEN BANGKALAN

Media Trend ◽  
2018 ◽  
Vol 13 (1) ◽  
pp. 158
Author(s):  
Yustina - Chrismardani ◽  
Bondan Satriawan
Keyword(s):  
Informal Sector ◽  
Temporary Workers ◽  
Formal Sector ◽  
Surrounding Area ◽  
Total Income ◽  
Informal Workers ◽  
Significant Difference ◽  
Permanent Workers

<p>One of the interesting things studied from Kabupaten Bangkalan is the aspect of employment, especially based on formal and informal sector. Based on the formal sector workers who belong to the category of workers / workers and tried to be assisted by permanent workers / workers paid up to 76 percent, and informal workers are who try their own, trying to be assisted by temporary workers, free workers in agriculture, free workers in non-paid to reach 24 percent. Other important findings indicate that there is no significant difference in the total income of workers in the formal and formal sectors, which is an average of Rp 76,184, and it turns out that Bangkalan regency has not been the target of workers migration from the surrounding area.</p><p> </p>

scholarly journals AN ASSESSMENT OF THE APPLICATION OF OCCUPATIONAL ERGONOMICS PRINCIPLES IN THE INFORMAL SECTOR OF HARARE AND MUTARE IN ZIMBABWE

2017 ◽  
Vol 2 (6) ◽  
Author(s):  
Steven Jerie
Keyword(s):  
Occupational Health ◽  
Informal Sector ◽  
Health And Safety ◽  
Occupational Health And Safety ◽  
Small Scale ◽  
Formal Sector ◽  
Local Authorities ◽  
Informal Workers ◽  
Employee Relationship ◽  
To Come

<p>A major challenge for the city authorities of Harare and Mutare in Zimbabwe is to come up with clear policies and actions aimed at supporting and nurturing the informal sector as well as improving health and safety in the sector. This study thus aims at assessing the awareness of ergonomics principles in the small scale enterprises of Harare and Mutare.<strong> </strong>The level of awareness of ergonomics principles is low in the small scale informal sectors of Harare and Mutare. It was expected that builders, woodworkers and welders would have a higher level of ergonomic principles, but this was not the case. The informal workers are employed in a high-risk sector, but survey results indicated that improving their work environment is not one of their top priorities. The financial situation and the fact that occupational hazards and diseases are not always visible means that their limited resources are allocated to field other than occupational health and safety. Workers in the informal sector are not affected by the traditional employer-employee relationship as that obtains in the formal sector where the employee is obliged to care for the workers occupational health and safety needs. In order to address occupational health and safety discrepancies in the informal sector there is need for change of mindset and this can be catalysed by the local authorities and other organizations. The local authorities can begin by ensuring basic occupational hygiene skills among the informal sector workers so that they may realize their economic potential and hence sustained businesses.</p>

ANALISIS KETIMPANGAN PRODUKTIVITAS DAN DUALISME KETENAGAKERJAAN DI PROVINSI BENGKULU

2021 ◽  
Vol 2 (2) ◽  
pp. 150-169
Author(s):  
Armelly Armelly ◽  
Novi Tri Putri ◽  
Retno Agustina Ekaputri ◽  
Lela Rospida
Keyword(s):  
Standard Deviation ◽  
Labor Productivity ◽  
Descriptive Analysis ◽  
High Standard ◽  
Formal Sector ◽  
High Standard Deviation ◽  
Informal Workers ◽  
Deviation Rate ◽  
Employment Data ◽  
Very High

The purpose of this study is to analyze labor productivity inequality and labor dualism in Bengkulu Province. The method used is descriptive analysis, equipped with class typology and elasticity of employment. We are using employment data from BPS publications. The results show that by dividing business fields into 17 sectors in 2018 and 2019, labor productivity inequality is awfully unequal, which is indicated by a very high standard deviation rate. Meanwhile, labor dualism is led by informal workers by a percentage of over 60%. More workers with primary education are absorbed in the informal sector, whereas educated workers are mostly taken in the formal sector. The highest coefficient of labor absorption elasticity for legal workers occurred in 2016 (3.14) and for informal workers in 2015 (1.73).Keywords: labor dualism, labor productivity

scholarly journals Is Informal Sector Employment Marginal to Formal Sector Growth?

2012 ◽  
Vol 51 (4II) ◽  
pp. 543-564 ◽  
Author(s):  
Nadia Tahir ◽  
Pervez Tahir
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Labour Force ◽  
Value Added ◽  
The State ◽  
Formal Sector ◽  
Informal Workers ◽  
Role Of The State ◽  
The Government

Pakistan has adopted a neoliberal regime to open the economy to global competition and reduce the role of the state. This directional change brought increased flow of overseas remittances, speculative investment, and consumerism. Consequently, the economy in mid-2000s grew but commodity-producing sector contracted. Public sector spending has been falling, especially on social sectors. There are inadequate provisions for social security and employment based income guarantees. However, this growth and stability was short lived and there is now a fragile state and slowing economy. In the absence of an effective regulatory role of the state, and due to the failure in developing a long-term strategy to harness the labour force potential, there is a huge informal sector existing side by side with the formal economy. Almost 22 million of the employed labour force is earning its livelihood in streets and the government has no record of it. The informal workers can be categorised as self-employed workers and wage workers, doing diversified jobs from petty traders to small producers and from rickshaw driver to shoe shiners. It is difficult to measure the value added contribution of the informal sector in Pakistan. Indirect estimation approaches on the basis of employment and hours worked have been used to estimate the contribution of informal economy. For instance, Idris (2008) estimates the share at 36.8 percent of GNP, which is significant. Arby, Malik and Hanif (2010) measured the size of informal economy in Pakistan through a monetary approach. They find that the size has declined considerably.

scholarly journals Social Security Enrollment as an Indicator of State Fragility and legitimacy: A Field Experiment in Maghreb Countries

2021 ◽  
Author(s):  
Walid Merouani ◽  
Claire El Moudden ◽  
Nacer Eddine Hammouda
Keyword(s):  
Labor Market ◽  
Social Security ◽  
Social Insurance ◽  
Discrete Choice Models ◽  
Formal Sector ◽  
Social Security Systems ◽  
State Fragility ◽  
Informal Workers ◽  
Informal Labor ◽  
State Legitimacy

State legitimacy and effectiveness could be seen by the way to deliver welfare to citizens to mitigate social grievances, that could eventually lead to conflicts (Kivim&auml;ki, 2021). Social security systems in Maghreb countries are quite similar in their architecture and aims to provide social insurance to all the workers in the labor market. However, they suffer from the same main problem: the low rate of enrollment of workers. Many workers (employees and self-employed) work informally without any social security coverage. The issue of whether informal jobs are chosen voluntarily by workers or as a strategy of last resort is controversial. Many authors recognize that the informal sector is heterogeneous and it is made up of workers who voluntary choose it and others who are pushed inside because of entry barriers to the formal sector (G&uuml;nther &amp; Launov, 2012). Using the SAHWA survey and discrete choice models, this article confirms the heterogeneity of the informal labor market in three Maghreb countries: Algeria, Morocco, and Tunisia. Furthermore, this article highlights the profiles of workers who voluntarily choose informality, which is missing from previous studies. Finally, this article proposes policy recommendations in order to extend social security to informal workers and to include them in the formal labour market.

Solid Waste Management and Social Inclusion of Wastepickers: Opportunities and Challenges

2017 ◽  
Vol 45 (1) ◽  
pp. 108-129 ◽  
Author(s):  
Marta Marello ◽  
Ann Helwege
Keyword(s):  
Waste Management ◽  
Solid Waste ◽  
Social Inclusion ◽  
Solid Waste Management ◽  
Social Benefits ◽  
Waste Processing ◽  
Formal Sector ◽  
Informal Workers ◽  
Managerial Experience ◽  
Capital Intensive

As informal workers, wastepickers gather recyclable material without adequate social benefits and occupational protection. In response to wastepicker demands for legalization and access to the waste stream, cities have created inclusion programs to improve livelihoods and promote recycling. While inclusion yields benefits for many participants, it brings challenges at each step of development. In the poorest countries, workers lack the skills, capital, and managerial experience to operate profitably, while projects in wealthier cities employ few wastepickers and face stiff competition from the formal sector. The most sophisticated municipal systems mechanize waste processing and threaten wastepickers’ livelihoods because capital-intensive methods yield few jobs. To realize genuine inclusion, policies to support wastepickers must enable workers to compete throughout the broader economy. Como trabajadores informales, los recolectores de basura se encargan de recoger materiales reciclables sin prestaciones sociales o protección laboral adecuadas. En respuesta a sus demandas de legalización y acceso al flujo de residuos, las ciudades han creado programas de inclusión para mejorar las condiciones de vida y promover el reciclaje. Mientras que dicha inclusión brinda beneficios a muchos participantes, también conlleva retos en cada etapa del desarrollo. En los países más pobres, los trabajadores carecen de las habilidades, capital y experiencia administrativa necesarias para operar de manera rentable, mientras que los proyectos en las ciudades más ricas emplean pocos recolectores que enfrentan una dura competencia por parte del sector formal. Los sistemas municipales más sofisticados mecanizan el procesamiento de los desechos y amenazan los medios de subsistencia de los recolectores dado que los métodos intensivos en capital generan pocos puestos de trabajo. Para que haya una genuina inclusión, las políticas de apoyo a los recolectores de basura deben permitir que dichos trabajadores compitan en el grueso de la economía.

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