scholarly journals EMPLOYMENT IN THE INFORMAL SECTOR IN NIGERIA: IMPLICATIONS FOR SUSTAINABLE ECONOMIC DEVELOPMENT

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Amaka Ogochukwu Onwo ◽  
Gladys Amaechi Ohazulike

The problem of employment has become a central global concern in recent times. This makes the government and development partners to be fully engaged in finding a lasting solution to the problems. In the past, development planning efforts were concentrated on the development of modern industrial sector. Today, there is renewed interest in the informal economy worldwide. This is because a large share of the global workforce and economy is informal and because the informal sector is growing in many contexts and appearing in new places and guises. The informal sector serves as a buffer against unemployment in times of economic downturn, allowing an increasing share of the population to earn a livelihood from the sector rather than stay openly unemployed with no income. The sector has also played a key role in cushioning the adverse impact of economic crises. The paper therefore interrogated the nature of employment in the informal sector and is anchored on Modernisation theory. This paper is based on a desk and literature review of relevant articles and publications as well as on employment and the informal sector. The paper revealed that Nigerian Informal Sector is a major contributor to the Nigerian economy, accounting for a significant portion of employment and national Gross Domestic Product and also the informal sector currently accounts for over half of global employment and as much as 90% of employment in some of the developing countries like Nigeria. The paper therefore recommends that efforts should be made by the government and its agencies to create more jobs. Secondly, policies should be introduced to address identified challenges in the informal sector towards improving productivity and incomes of informal sector workers.

Author(s):  
Tchakounté Njoda Mathurin ◽  
Hamit Halou Chalout

In this study, we analyze the link between income concentration and the size of the informal sector. We construct a simple model where income concentration determines demand and firms decide whether to operate in the formal or the informal economy is outlined. The government collects taxes and returns them to society either as a productive public good for its use by formal firms or as transfers to the poor. It is further postulated that income distribution affects the response of the informal sector to different fiscal policies, either demand or supply-orientated. In this case, redistribution towards the middle class decreases the size of the informal sector and increases the capacity of fiscal instruments to reduce informality. Data concerns 38 Africans’ countries in which the characteristic of income distribution is similar across countries. Using this comparable macro-level panel data between 1991 and 2013, we find strong evidence that high-income concentration leads to a large informal sector. Furthermore, an economic policy, including the effective application of the tax and regulatory procedures, should help to keep down the size of the informal economy.


Author(s):  
Bismark Mutizwa

COVID-19 has disrupted the business sector globally, ushering developed and developing economies into an unprecedented recession beyond anything experienced in nearly a century. Governments across the globe have adopted a myriad of preventive measures. These remedial actions vary from one country to the other. Nonetheless, in Zimbabwe the government gave a blind eye on the informal sector as evidenced by the adopted preventive measures which neglected the plight of informal traders. To this end, this research interrogates the shadow pandemic in the Zimbabwean informal sector using Chiredzi District as an illustrative case study. Documentary review and key informed interviews were at the core of research methodology. The study found out that informal economy businesses are excluded from government grants, closure of businesses, failure to pay rentals, disruption of the supply chain, psychological impact and family dysfunctional are the quandaries causing a shadow pandemic. Inclusion of informal economy businesses in policies and government grants, government should negotiate with landlords, informal traders should be allowed to operate and inclusive social nets are the possible remedial actions that the government can adopted.


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.


2020 ◽  
Vol 10 (1) ◽  
pp. 53-68
Author(s):  
Margaret Giacalone

In the city of Cochabamba, Bolivia, mothers from the campo have become the engine of the Bolivian economy and leaders in their communities. The issue: they work in the informal sector, which is disapproved by the government and general population. Families from the countryside have lost their homes and traditional means of living as a product of policies in favor of foreign competition. Mothers have become the leaders of their homes and found jobs in the city that have further burdened their role responsibilities. Since there are few safe work opportunities that support indigenous migrant mothers’ maternal identities, they create their own jobs in spaces traditionally dominated by machista values. Despite intersecting obstacles of gender, class and race, mothers are resilient and capable of redefining spaces and reframing narratives of their motherhood. Drawing on ethnographic data, this article depicts how migrant mothers achieve empowerment, survival and control of their identities thanks to the agency they have found in traditional employment, entrepreneurship and cooperative entrepreneurship within the informal sector, as well as support from non-governmental organizations.


2012 ◽  
Vol 51 (4II) ◽  
pp. 543-564 ◽  
Author(s):  
Nadia Tahir ◽  
Pervez Tahir

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.


2020 ◽  
Author(s):  
Kehinde Sowunmi

Nigeria has experienced a relatively large share of zoonotic disease outbreaks in the past and this has impacted its readiness and response level in fighting the COVID-19 outbreak in the country. Compared to most countries in West Africa, Africa and the world, Nigeria seems to be ineffectively curbing the spread of the virus and managing disease. The first covid-19 case was confirmed on 27th, February 2020, when an Italian citizen in Lagos tested position of virus caused by SARS-CoV-2. A second case of the virus was reported in Ewekoro, Ogun State, a Nigerian who had contact with the Italian citizen on 9th, March 2020 and as at 15th, May 2020, there has been 5162 cases confirmed from 30, 657 tests carried out. Also as at this date there has been 1180 discharged cases and 167 reported death from the disease. These promising Statistics prompts the development of this paper to detail the epidemiology of the disease in country and discuss response of the government and other stakeholders to the outbreak.


Author(s):  
Jane N. O. Khayesi

This chapter examines the function of the informal economy in Kenya and the shifting government responses to it through a review of key policies and documents from 1971 to 2017. As in many African states, the Kenyan informal economy is a critical source of employment and economic activity, providing 80 percent of new jobs in an average year. The key finding of this chapter is that the Kenyan government has undertaken a number of initiatives to support the informal sector but the impact of these initiatives remains controversial; some have been actively resisted by informal workers and businesses that believe their impact would be damaging. Thus, although a policy and institutional framework has been put in place with the official aim of encouraging the growth of the informal economy, tensions with the government remain, and there is a pressing need for the full implementation of a number of measures, most notably licensing.


2013 ◽  
Vol 28 (1-2) ◽  
pp. 235-252
Author(s):  
Ramchandra Dhakal

Developing counties, like Nepal is still in tense to maintain the level of political stability, economic growth, development, and employment which are the main issues in one side of the economy and on the other, the majority of the people find shelter in the informal sector in the absence of sluggish growing formal sector. Most of the people are engaged in informal economies that have created varying effects on them in terms of employment and income generations. The latter seems to be determined mainly by the household property, level of literacy, the number of persons employed in any unit and investment. However, there is no apparent differentiation in the income earnings between males and females, the latter seems to be more efficient and articulate in many ways. Income earnings have been higher in the urban location than that of the rural sector. Income level and the determining factors seem to vary among different location and sexes. This study tries to compare the nature and characteristics of informal sector both at national as well as international levels. The government must play effective policy as well as to uplift informal economy for the economic development as a whole. To identify the informal sector properly in Nepal, a national wide survey that covers overall aspects should be considered before taking any step.


1980 ◽  
Vol 19 (4) ◽  
pp. 337-352 ◽  
Author(s):  
I. Z. Bhatiy ◽  
L. Berouti

This article has addressed itself to the delicate problem of evolving a development and employment strategy for a country still at its early stages of development and with traditional socio-economic structures. To modernise these structures and thus assist in achieving fuller and more productive employment, in reducing poverty and income inequality and in satisfying the basic needs of the mass of the population, the article based on the conclusions and recommendations of an ILO Mission has recommended a fourpronged attack: (1) a particular stress on rural development; (2) an urban strategy aiming at increasing the potential of the informal sector and at stimulating the rapid development of the industrial sector; (3) appropriate education, training and labour market policies; (4) finally, reforms in development planning and administration.


2020 ◽  
Author(s):  
Kehinde Sowunmi Sr

UNSTRUCTURED Nigeria has experienced a relatively large share of zoonotic disease outbreaks in the past and this has impacted its readiness and response level in fighting the COVID-19 outbreak in the country. Compared to most countries in West Africa, Africa and the world, Nigeria seems to be ineffectively curbing the spread of the virus and managing disease. The first covid-19 case was confirmed on 27th, February 2020, when an Italian citizen in Lagos tested position of virus caused by SARS-CoV-2. A second case of the virus was reported in Ewekoro, Ogun State, a Nigerian who had contact with the Italian citizen on 9th, March 2020 and as at 15th, May 2020, there has been 5162 cases confirmed from 30, 657 tests carried out. Also as at this date there has been 1180 discharged cases and 167 reported death from the disease. These promising Statistics prompts the development of this paper to detail the epidemiology of the disease in country and discuss response of the government and other stakeholders to the outbreak.


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