scholarly journals Informal Economy and Gender Inequality,

2020 ◽  
Author(s):  
Tonuchi Emmanuel Joseph ◽  
Chinedu Miracle Nevo ◽  
Chinyere Ugonwa Nwolisa

Abstract The COVID-19 pandemic ravaging the global economy has exposed not just the dominant nature of informal sector in Africa economy but also the vulnerability of the women in the continent. Thus, this study investigates the relationship between gender inequality and growth of the informal sector in Africa. Using Generalised Least Square Approach, it was discovered that gender inequality indices such as equality between male and female in getting job in the formal economy under same or similar circumstances have significant impact in the growth of the informal economy in the continent. The study concludes that if adequate effort is not made to address the gender inequality in the continent especially in formal employment that have forced many females to informal sector employment, the objective of achieving inclusive growth and development in the continent might not be realistic. The study therefore recommends that the UN and other international organisations should compensate the African women by giving the women at least 60 percent chance in all their employment as a way of increasing the economic and political power of the women in the continent.

Author(s):  
M.C. Moreroa ◽  
M.B. Rapanyane

The two practices of gender inequality and gender-based violence (GBV) are not peculiar to South Africans, as they also affect the African continent and the Global world in different shapes and forms. Whatever happens, when these two unacceptable behaviours and/ practices take form, women often end up being discriminated, sidelined and violated. Against this backdrop, this paper analyses the state of gender inequality and GBV in South Africa and finds common features which exist between the two. The central narrative of this paper is that the two notions are, at a very faster pace, becoming subjects of considerable debate and concern. This paper argues that the two notions have depressing effects on South African women. Afrocentricity is adopted in this paper in order to relevantly and positionally reflect on the central objective.


2013 ◽  
Vol 84 ◽  
pp. 271-277 ◽  
Author(s):  
Jeremy Morris

AbstractThis Tale from the Field focuses on the interpretation by workers of the precarious nature of blue-collar formal employment in Russia. In an ethnographic sketch based on over two years in the field, I follow an individual, Sergei, as he relies more and more on informal and other sources of income instead of waged labour in the increasing number of multi-national enterprises which have come to Russia to set up factories. Why does Sergei, and many like him, still young or without memory of Soviet labour practices, ‘choose’ exit from the formal economy at the very moment when wages and conditions are finally increasing? Why is the informal economy as a ‘choice’ so important to blue-collar workers despite the hunger for labour in traditional production industry?


2021 ◽  
Vol 13 (5(J)) ◽  
pp. 63-72
Author(s):  
Cassandra E. DiRienzo ◽  
Jayoti Das

Although female entrepreneurship yields products, markets, and business models that might not exist otherwise and are relevant to economic growth and development as well as issues related to gender equality, the factors that drive female entrepreneurship is largely understudied. The primary objective of this study is to examine the relationship between the size of a country’s informal sector and the prevalence of female entrepreneurship in the formal economy. This relationship is empirically tested using a regression analysis that employs a cross-country data set of 70 countries. The analysis results indicate a significant inverse relationship between the size of the informal sector and the prevalence of formal sector female entrepreneurship. It is argued that a larger informal economy implies a greater number of women working in the informal sector due to discriminatory barriers to the formal economy. Both formal sector entrepreneurship and work in the informal economy can lessen the barrier to entry women face related to work-life balance by allowing greater flexibility in work hours; however, employment in the informal sector is a relatively poor substitute to formal sector employment as informal sector work does not include benefits, nor is it taxed or included in official statistics. Policy recommendations for encouraging formal female entrepreneurship are made. Promoting female entrepreneurship in the formal sector not only helps to close gender, inequality gaps, but also serves to improve tax systems, lessen distortions in national accounts and official indicators, and improve the provision of public goods.


Author(s):  
Ernest Aryeetey

The expressions, “informal economy,” “informal sector,” and “informal employment” reflect statistical terms and definitions used to describe various aspects of informality. They are the result of several decades of work to develop a framework that adequately represents the multifaceted nature of informality as it applies not only to developing countries, but also to other transition and developed economies. The informal sector is generally viewed as the set of activities of small unregistered enterprises, while informal employment refers to employment within the formal or informal sector that lacks any form of protection, whether legal or social.1 The informal economy is a broader concept that encompasses all of these elements in their different forms, including their outputs and outcomes. The many different views about the drivers and composition of the informal economy in Africa have influenced various prescriptions and policy responses. On the one hand, some have viewed informality as being inimical to investment and growth, given that the activities undertaken usually fall outside of official regulation and control. The policy response has, therefore, often been to clamp down on or formalize the activities and relationships within the informal economy. On the other hand, informality is sometimes viewed as critical for growth and poverty reduction, given that the informal economy is inextricably linked to the formal economy while also serving as an important source of livelihood for millions of people. As a result of this, some effort has recently gone into providing a more supportive environment to enhance productivity within the informal economy and minimize its inherent vulnerabilities in the last decade. In the face of increasing globalization and access to new technologies that will drive the future of work, there is concern about the future of informal economic activities. Whether new technologies lead to a decline or upscaling of the informal economy in Africa will depend on several elements. Technology will not only shape how informality in Africa is viewed, but will influence the kind of activities undertaken, its links with the formal economy, and ultimately, the public policy response, which will itself be shaped by advances in technology.


2020 ◽  
Vol 25 (03) ◽  
pp. 2050021
Author(s):  
CRISTIAN E. VILLANUEVA ◽  
ADRIANELA ANGELES ◽  
LUZ CECILIA REVILLA

Social responsibility (SR) has been widely studied within formal organizations, especially in large companies in developed countries. However, studies about SR in the informal sector is still insufficient. Addressing this gap is relevant for developing countries where informality is becoming extensive and is growing faster than the formal economy. This research has two main objectives: (1) determine whether in an informal economy context, entrepreneurs could perform SR and (2) if it is possible to have SR, to examine critically the way informal entrepreneurs perform it. To achieve these objectives, this study conducted 50 face-to-face, semi-structured interviews with informal entrepreneurs (IEs) in Mexico City. The outcome of this research shows evidence that IEs can perform SR in an implicit form, despite their adverse and vulnerable conditions.


2013 ◽  
Vol 19 (3) ◽  
pp. 578-617 ◽  
Author(s):  
Ceyhun Elgin

I develop a dynamic political economy model with an informal sector and two political parties alternating in office. In equilibrium, if the incumbent political party faces a higher probability of staying in office, it sets a higher tax rate on the formal economy to invest more in productive public capital, while spending less for current office rent. Moreover, I argue that public capital is mainly utilized by the formal sector, and this implies that countries in which incumbent parties are more likely to stay in power have a higher tax burden but a smaller informal sector. I also present some empirical evidence that supports the main results of the model.


2017 ◽  
Vol 37 (7/8) ◽  
pp. 374-386 ◽  
Author(s):  
Joanna Shapland ◽  
Jason Heyes

Purpose Recent changes in the UK to the regulation and modes of work in the formal and informal economies are considered. Research in this field has tended to remain in silos (treating formal economy working conditions separately from research on the informal economy). The question is whether the means of work and benefits to the worker for formal and informal work are now as different as the former images of formal and informal economy work imply under a “jobs-for-life” economy. The purpose of this paper is to consider whether the current aim of government regulation of the informal economy – to formalise it – is actually of benefit to workers, as might be supposed. Design/methodology/approach This paper considers recent research findings on the formal and informal economy, using official government statistics for the UK and more detailed European studies on the informal economy. Findings This paper argues that formal employment in the UK is becoming more casualised, with less associated benefits to employees. Though it is still of benefit to the state to formalise informal work (to increase tax take), some of the links between formalisation and a good working environment for workers are being broken, which may lead to the informal economy becoming more popular and requiring different priorities in its regulation. Originality/value This paper argues that we need to change our assumptions and image of work in the formal economy, compared to that in the informal economy.


Author(s):  
Dipak Bahadur Adhikari ◽  
Preeti Gupta ◽  
Niranjan Devkota ◽  
Udaya Raj Paudel ◽  
Seeprata Parajuli

This study seeks to contribute to the empirical understanding to the transformation of informal business towards formal business in Nepal on the basis of cross-sectional data. This paper examines the preferences socio-economic and other social capital related to informal business. Various indicators were identified to understand and analyze readiness of various informal sectors from literature review of different theories. People with high level of education less prefer informal sector however, prime working age labor force were involved massively in informal sector. More than two-third respondents argued that situation is not manageable which means the informal economy is not transitional to formal economy. Majority of respondents believes that there are some administrative problems that could hinder the entrepreneurial potential and their creativity to flourish.


Author(s):  
Hamid E. Ali

Governments in developing economies often resort to taxing bank money balances through imposition of high reserve requirements and also by relying on seigniorage to finance their deficits. In the context of those practices, this research attempts to answer the following questions. First, why do developing economies with an informal sector resort to inflationary measures to finance their activities? Second, how does a government induce an agent to choose the formal economy? As to the first question on the trade-off between inflation and reserve requirements, it is shown that of maximum inflation and minimum reserve requirements will increase the steady-state utility of an optimizing agent. Regarding the second question, the agents prefer the informal economy if policy relies on a maximum reserve requirement.  


2011 ◽  
Vol 66 (1) ◽  
pp. 54-73 ◽  
Author(s):  
Pauline Dibben ◽  
Sara Nadin

Analysis of findings suggests that community unionism is vibrant within Mozambique. Trade union engagement with the main community organization representing the informal economy appears to be a key element of its revitalization strategy; both parties are benefiting from the relationship, and it appears to be sustainable. However, certain questions arise regarding its longer-term viability. Firstly, ASSOTSI represents those working illegally, while the OTM focuses on workers in formal employment. Secondly, OTM has a close relationship with the government due to its socialist past, yet ASSOTSI has a more tentative relationship with the government. Thirdly, ASSOTSI represents only African workers. Furthermore, senior figures in the OTM now seem to be re-considering the value of sustaining an affiliate model that includes all of the informal economy (including both owners and workers), and instead are contemplating setting up a union to represent informal sector workers.This article draws on in-depth research to investigate how community unionism has been employed in Mozambique, an emerging economy in Africa. In doing so, it asks whether engagement with community organizations is characterized by a strategic or piecemeal approach, the degree to which there are mutual benefits for the trade union and the community organization, and whether the relationship is sustainable in the longer term.Against the background of liberalization, privatization and financial crisis, unions face a declining number of core members. In emerging economies such as Mozambique, the formal sector now constitutes around eight percent of the working population, while around seventy-five per cent of the workforce is in the informal sector, with the remainder being unemployed. In many countries, unions have sought to engage these workers through “community unionism.”


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