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Mesa 1 marty chen

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Mesa 1 marty chen

  1. 1. INCLUSIVE CITIES & THE URBAN INFORMAL WORKFORCE MARTY CHEN LECTURER IN PUBLIC POLICY, HARVARD KENNEDY SCHOOL AFFILIATED PROFESSOR, HARVARD GRADUATE SCHOOL OF DESIGN INTERNATIONAL COORDINATOR, WIEGO NETWORK MEXICO CITY CONFERENCE NOVEMBER 24, 2014
  2. 2. PRESENTATION My presentation will be in 3 parts:  Informal Sector, Informal Employment & Informal Economy  Definitions  Data  Urban Informal Employment  Size & Composition  Driving Forces  Inclusive Cities  Policy Stance  Policy Vision
  3. 3. INFORMAL SECTOR, INFORMAL EMPLOYMENT, INFORMAL ECONOMY There are three related official statistical terms and definitions which are often used imprecisely and interchangeably by analysts and observers: • informal sector refers to the production and employment that takes place in unincorporated enterprises that might also be unregistered or small (1993 ICLS) • informal employment refers to employment without social protection (i.e. without employer contributions) both inside and outside the informal sector: i.e., for informal enterprises, formal enterprises, or households (2003 ICLS) • informal economy refers to all units, activities, and workers so defined and the output from them (ILO 2002). In sum, the informal economy is the diversified set of economic activities, enterprises and workers that are not regulated or protected by the state; and the output from them.
  4. 4. INFORMAL EMPLOYMENT: 2003 International Conference of Labour Statisticians  Self-Employed in Informal Enterprises (i.e. unincorporated enterprises that may also be unregistered and/or small)  employers  own account operators  unpaid contributing family workers  members of informal producer cooperatives  Wage Workers in Informal Jobs (i.e. jobs without employment-linked social protection)  informal employees of informal enterprises  informal employees of formal firms  domestic workers hired by individuals/households without employer contributions
  5. 5. INFORMAL EMPLOYMENT AS % OF NON-AGRICULTURAL EMPLOYMENT 2004-2010 Average & Range by Regions South Asia: 82% 62% in Sri Lanka to 84% in India Sub-Saharan Africa: 66% 33% in South Africa to 82% in Mali East and Southeast Asia: 65% 42% in Thailand to 73% in Indonesia Latin America: 51% 40% in Uruguay to 75% in Bolivia Middle East and North Africa: 45% 31% in Turkey to 57% in West Bank & Gaza Source: Vanek et al. WIEGO Working Paper No. 2, 2014
  6. 6. INFORMAL EMPLOYMENT: COMPOSITION IN DEVELOPING REGIONS Informal wage workers outside informal enterprises (i.e. for formal firms or households) around15% of non-agricultural employment Self-employed as % of informal non-ag employment Employers = 1-4% Unpaid family workers in family firms = 5-12% Own account workers = 35-53% Source: Vanek et al. WIEGO Working Paper No. 2, 2014 Three Key Points: # 1 - a significant share of informal wage employment is outside informal enterprises (i.e. for formal firms or households) # 2 – most informal self-employed do not hire workers # 3 – labor laws & regulations have limited salience for informal self-employed – what matters are sector-specific policies (notably urban policies for urban self-employed)
  7. 7. SPECIFIC GROUPS OF URBAN INFORMAL WORKERS  Domestic Workers = 6% of employment in Lima and 8% of employment in Buenos Aires; 5% of urban employment in India and 3-9% of employment in African cities where data available  Home-Based Workers = 3% of employment in Buenos Aires; 14% and 6% of urban employment in, respectively, India and South Africa  Street Vendors = 1% of employment in Buenos Aires; 3% of urban employment in Brazil; 4% and 15% of urban employment in, respectively, India & South Africa  Waste Pickers = 1 per cent or less of urban informal employment in cities or countries where data are available  All Four Groups = 23% of urban employment in India Source: ILO-WIEGO 2013. Women & Men in the Informal Economy: A Statistical Picture; Chen and Raveendran WIEGO Working Paper No. 7, 2014.
  8. 8. INFORMAL EMPLOYMENT IN MEXICO Size: informal employment.  51.8% of national employment.  45.2% of urban employment. Composition: two types of informal employment as percentage of urban* employment.  25.4% inside informal enterprises.  19.8% outside informal enterprises. * Localities ≥ 100 thousand inhabitants.
  9. 9. URBAN INFORMAL EMPLOYMENT IN MEXICO  Employment inside informal enterprises in urban areas amounts to 6.4 m (2.3 m. are women).  56.2 % of the total urban informal employment.  Informal employment outside informal enterprises is about 4.9 m. and a majority of them women (2.6 m.).  43.8% of total urban informal employment.
  10. 10. URBAN INFORMAL EMPLOYMENT IN MEXICO  There are 6.5 m. informal paid dependent workers (employees).  2.0 m. working for informal enterprises.  4.5 m. working outside informal enterprises. • 1.1 m. paid domestic workers. • 3.4 m. working for formal enterprises. Source: INEGI. ENOE, Third Quarter 2014 (from Rodrigo Negrete).
  11. 11. EXCLUSIONARY URBAN POLICIES: THREATS TO URBAN LIVELIHOODS  Urban Livelihoods: o impacted by municipal policies + regulations + practices – more so than labor law or national policies o overlooked or undermined by municipal authorities and urban planners + excluded from or destroyed by urban renewal schemes  Key Urban Informal Groups – threats to livelihoods o home-based producers: lack of basic infrastructure services, especially irregular supply of electricity + single-use zoning regulations + slum relocations o street vendors: insecure workplace + abuse of authority by local officials and police, especially bribes, confiscation of goods, evictions and relocations o waste pickers: lack of rights of access to waste + lack of integration into solid waste management system o all three groups: lack of accessible/affordable transport + lack of integration into local economic planning
  12. 12. INCLUSIONARY URBAN POLICIES: PROMISING EXAMPLES  Home-Based Workers: o Ahmedabad, India: in situ upgrading of slums with provision of basic infrastructure services  Street Vendors o Lima, Peru – New Metropolitan Street Vending Ordinance to regulate vending in public space, issued in May 2014 o Ferias Libres in Multiple Cities, Chile: rotating location of markets to reduce impact on traffic + legal framework to legitimize street markets  Waste Pickers o Belo Horizonte, Brazil: sheds and other infrastructure for waste picker cooperatives to sort, bundle, process and store waste o Bogota, Colombia: integration of waste pickers into solid waste management,; payment to waste pickers for collecting and sorting waste
  13. 13. INCLUSIVE CITIES: POLICY RECOMMENDATIONS Home-Based Workers: quality housing + de facto tenure + basic infrastructure services Street Vendors: legal access to public space in natural markets Waste Pickers: inclusion in solid waste management All: recognition of contributions + representation in planning
  14. 14. INCLUSIVE CITIES: GUIDING PRINCIPLES  Most developing economies are hybrid economies – mix of both modern-traditional and formal-informal – and should remain so.  The size, composition, and contribution of the informal economy need to be fully counted in official statistics and fully valued by policy makers.  Informal workers, activities, and units should be included in local economic planning.  Informal workers need to have representative voice in rule-setting and policy-making bodies.
  15. 15. INCLUSIVE CITIES: VISION FOR THE FUTURE “The challenge is to convince the policy makers to promote and encourage hybrid economies in which micro-businesses can co-exist alongside small, medium, and large businesses: in which the street vendors can co-exist alongside the kiosks, retail shops, and large malls. Just as the policy makers encourage bio diversity, they should encourage economic diversity. Also, they should try to promote a level playing field in which all sizes of businesses and all categories of workers can compete on equal and fair terms.“ Ela Bhatt Founder, Self-Employed Women’s Association (SEWA), India Founding Chair, WIEGO Member, The Elders
  16. 16. FOR MORE DETAILS Please visit www.wiego.org THANK YOU!

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