scholarly journals Is formal employment sector hereditary? Determinants of formal/informal sector choice for Mexican male workers

Author(s):  
Adelaido García-Andrés ◽  
Ernesto Aguayo-Téllez ◽  
Jose N. Martínez

Understanding the relationship between parents’ and sons’ formal employment is essential for promoting social mobility in Mexico. Using the 2011 Survey of Social Mobility in Mexico (EMOVI), this paper contributes to the literature by addressing the intergenerational mobility of employment. Findings show a strong connection between intergenerational employment choices and suggest a positive selection for workers. Individuals with parents who worked in the formal sector are more likely to be enrolled in formal work and vice versa. Also, after controlling for parent’s employment sector, schooling remains as a significant vehicle to transit to the formal sector.

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.”


2017 ◽  
Vol 3 (3) ◽  
pp. 405 ◽  
Author(s):  
Mohammed Yelwa ◽  
A. J. Adam

<p><em>The paper examines the impact of informal sector activities on economic growth in Nigeria between 1980-2014. The contributions of informal sector activities to the growth of Nigerian economy cannot be over emphasized. It is the source of livelihood to the majority of poor, unskilled, socially marginalized and female population and is the vital means of survival for the people in the country lacking proper safety nets and unemployment insurance especially those lacking skills from formal sector jobs. The relationship between informality and economic growth is not clear because the sector is not regulated by the law also there is no concrete evidence that this sector enhances growth because the sector’s contributions to growth is not measured. The use of endogenous growth model becomes relevant in this study. The theory emphasizes the role of production on the long-run via a higher rate of technological innovation. The variables that were tested are official economy nominal GDP, informal economy nominal GDP, currency in circulation, demand deposit, ratio of currency in circulation to demand deposit, narrow money, informal economy as percentage of official economy. ADF test was conducted to establish that the data series of all variables are stationary t levels. Having established the stationarity test we also, conducted causality test of the response of official economy nominal GDP to informal economy nominal GDP. In conclusion, the impact of informal sector economy on economic growth in Nigeria is quiet commendable. Even though, the relationship between informality and economic growth is not straight. The paper recommended thus, the need for the government to integrate the activities of the informal economy into formal sector and size of the sector is measured and regulated because their roles are commendable. As it will improve tax collection and enhance fiscal policy.</em></p>


2021 ◽  
Vol 41 (3) ◽  
pp. 538-554
Author(s):  
LEOPOLDO GÓMEZ-RAMÍREZ ◽  
NESTOR GARZA

ABSTRACT We develop a theoretical model that explains the relationship between credit constraints and economic growth in the context of a three-sector economy, including an “extractive” sector. The model belongs in the structuralist tradition and it is inspired by the Colombian economy. In contrast to neoclassic development economics models, we prove that: 1) relaxing the credit crunch would foster formal sector growth but it may nevertheless not imply formal employment growth; and 2) the economy can converge to a pattern where the extractive sector increases while the formal one shrinks.


Author(s):  
Innocent Chirisa ◽  
Tinashe Bobo

Using case studies from Cairo, Harare, Kigali, and Addis Ababa, this study seeks to disentangle the relationship that exists between the informal sector and the urban environments in Africa. It argues that there are two sides to the coin of the informal sector: the informal sector as a major contributor to urban environmental pollution (land, water, air, and sound), and the sector works as a “cleanser” given its ability to re-use the materials that the formal sector has disgorged. The study defines the inputs, processes, throughputs, and outputs in the sector in keeping with the debates of informal sector contributor to poor environmental management and the informal sector cleanser of the potentially polluted environment. In light of these debates, the authors see the extant imperative of balancing between the two debates in order to inform the urban environmental policy. Overall, with improved technology or appropriate technology coupled with rigorous environmental stewardship campaigns, it is possible to create safer cities where brown, green, and red issues are balanced out.


Author(s):  
Rizky Maulana

This research aims to see whether tertiary education graduates are more likely to be employed in a formal sector than lower levels of education. Formal employment has a much higher wage rate than the informal sector. Students who go on to higher education have high expectations for their standard of living in the future, but there are still college graduates who work in the informal sector. To answer the purpose of this research, the writer uses probit regression. From these regressions, significant results were obtained. Higher education increases one's chances of being employed in the formal sector. Likewise, the sex and age variables. Male workers have a higher chance of being employed while the older labor forces have smaller chances of being employed in a formal sector.


2019 ◽  
Vol 9 (2) ◽  
pp. 49-73
Author(s):  
Thomas Bolli ◽  
Mahesh Nath Parajuli ◽  
Ursula Renold

This paper uses seven individual-level surveys between 1995 and 2014 to analyse the hypothesis that formal education increases wage-employment and formal sector employment in Nepal. The results show that formal education has increased substantially. However, formal sector employment has remained relatively stable. Individuals with tertiary education are about twice as often employed in the formal sector than individuals without completed primary education. This relationship is less strong for secondary education (22%) and primary education (7%). The results further show that about half of the relationship arises from working in government-related sectors. The overall picture regarding the relationship between formal education and formal sector employment has remained similar over time. However, the strength of the relationship between completed primary and secondary education and formal sector employment has decreased over time. The relationship between tertiary education and formal sector employment has remained stable unless the government related sectors are excluded.


2011 ◽  
Vol 12 (4) ◽  
pp. 462-474 ◽  
Author(s):  
Cyril Nhlanhla Ngiba ◽  
David Dickinson ◽  
Louise Whittaker ◽  
Claire Beswick

The informal sector in South Africa is a significant, but not well understood phenomenon. One important question relates to the nature of the relationship between the formal and informal sector. This article uses Porter’s five forces model to interrogate the linkages between informal fruit and vegetable traders in the Natalspruit Market (Ekurhuleni) and their formal suppliers, primarily the Johannesburg Fresh Produce Market. While the threat of new products is low, the street traders’ position is weakened by the threat of new entrants, consumer bargaining power and lack of cooperation among street traders. In relation to supplier power, we conclude that while this varies according to a number of factors, the formal sector is dominant over informal fruit and vegetable sellers in this market. This finding rests primarily on the observation that, because of their fragmentation, the informal traders’ collective buying power is not being used in the same way as large formal retailers of fruit and vegetables to obtain better terms of trade with the formal economy supplier.


2018 ◽  
Vol 2 (2) ◽  
pp. 149-161
Author(s):  
Beni Teguh Gunawan

Local election (pilkada) become a political phenomenon impact to various other sectors, not least the economic sector. Local elections in Indonesia are conducted at district and provincial levels. The incumbent candidate will use their power to control the fiscal sector in the region to improve their electability. One of the effort is to improve performance of the regional economy that will impact on the new job creation as the trade-off concept in the Phillips curve. Empirical results indicate that district/municipal election significantly influences the absorption of informal sector workers. A year before the district-level elections, an increase of informal sector workers by 3.39%, in the other hand, it reduces formal sector employment by 5.54%. Different results are shown in the provincial elections, where one year before the pilkada has no impact on the formal sector. When district/municipal and provincial elections are held in the same year, the absorption of informal sector workers decreased by 4.77% while the formal sector increased by 8.28%. When the incumbent candidate participate the next election, the informal workers increase 6.58% while formal employment does not affected.


1998 ◽  
Vol 43 (1) ◽  
pp. 31-78 ◽  
Author(s):  
Johan Dambruyne

This article investigates the relationship between social mobility and status in guilds and the political situation in sixteenth-century Ghent. First, it argues that Ghent guilds showed neither a static picture of upward mobility nor a rectilinear and one-way evolution. It demonstrates that the opportunities for social promotion within the guild system were, to a great extent, determined by the successive political regimes of the city. Second, the article proves that the guild boards in the sixteenth century had neither a typically oligarchic nor a typically democratic character. Third, the investigation of the houses in which master craftsmen lived shows that guild masters should not be depicted as a monolithic social bloc, but that significant differences in status and wealth existed. The article concludes that there was no linear positive connection between the duration of a master craftsman's career and his wealth and social position.


1996 ◽  
Vol 38 (2-3) ◽  
pp. 97-108 ◽  
Author(s):  
Anders Danielson

AbstractThis paper briefly discusses the economic reforms that have taken place in Jamaica for the past 15 years and argues that the reforms, at least so far, are mixed, particularly with regard to the elimination of poverty. The basic problems are (1) a slow response of exports to large, frequent adjustments in the exchange rate, which prohibits low-wage labor, in the informal sector, from being absorbed into the formal sector; and (2) the large budget deficit, with the associated demands for large cuts in expenditures, which primarily affects the rural poor. It is suggested that the principal reason that reforms have been slow is because of the political price to be paid for unpopular measures in a competitive democracy


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