Over the past two decades, employment in the informal sector has risen rapidly in all regions in the world. Until the recent Asian economic crisis, it was only the once-rapidly- growing economies of East and Southeast Asia that experienced substantial growth of modern sector employment.
However, in the wake of that crisis, most of these countries have experienced a decline in formal wage employment and a concomitant rise in informal employment. Even before the crisis, official statistics indicated that the informal sector accounted for over half of total non-agricultural employment in Latin America and the Caribbean, nearly half in East Asia, and as much as 80 percent in other parts of Asia and in Africa.
And, in terms of urban employment, the informal sector accounted for well over half in Africa and Asia and a quarter in Latin America and the Caribbean. The contribution of the informal sector – not only its size - is quite large. The contribution of informal sector income to total household income is significant in many regions: for example, in several African countries, informal sector income accounts for nearly 30 percent of total income and over 40 percent of total urban income.
The contribution of the informal sector to gross domestic product (GDP) is probably also significant. For those countries where estimates exist, the share of the informal sector in non-agricultural GDP is between 45 to 60 percent.
Estimates of the size, contribution, and composition of the informal sector vary widely, according to what size of ent erprises are included, whether agriculture is included, and how much of women’s informal work is included. Like others who have worked closely with women in the informal sector, I would argue that the informal sector is even larger than official statistics suggest. Our argument is based on the fact that much of women's paid work - not just their unpaid housework - is not counted in official statistics.
If the magnitude of women's invisible paid work, particularly home-based remunerative work, were to be fully counted, both the share of women and the share of informal workers in the work force would increase. Recognizing and, more importantly, counting women's invisible remunerative work would challenge our empirical understanding not only of the informal sector but also of the economy as a whole. Why should we be concerned about women who work in the informal sector? There is a significant overlap between being a woman, working in the informal sector, and being poor. There is also a significant overlap between being a woman, working in the informal sector, and contributing to growth. This paper examines the evidence on the linkages between gender, informality, poverty, and growth; postulates some possible explanations of these linkages; and describes the global movement of women in the informal sector.
This document provides an introduction and literature review for a paper examining the role of the informal sector in promoting regional economic integration in West Africa. It discusses definitions of the informal sector and its importance as an employer, particularly for vulnerable groups. The paper aims to develop an Informal-Formal Sector Transmission Model to establish the link between the informal sector, market access, and regional integration. It argues that promoting the informal sector through market access could reduce poverty, conflicts, and encourage integration in West Africa. The methodology will use currency and monetary data from Nigeria to measure the informal sector, along with descriptive analysis and model development.
EFFECT OF POPULATION GROWTH ON THE ECONOMIC GROWTH OF CHINA Asif Mahmood Abbas
China is the world's second largest economy by nominal GDP $11.8 trillion. According to PPP its position is 1st 22.3 trillion 2017. Because it is known as global hub for manufacturing also China is the world's fastest growing consumer market and second largest importer of goods in the world.
This document summarizes a study of informal sector activities in Magaba, Harare, Zimbabwe. The study interviewed 184 informal sector operators and found that while some use the informal sector as a last resort, many are committed to their informal enterprises even if other options were available. The study also found stratification within the informal sector related to workplace tenure and economic activity, implying a need for differentiated policies. Most operators had experience in the formal sector but turned to the informal sector due to lack of employment opportunities or need to supplement income. Skills were largely acquired informally rather than through formal education.
Enhancing Women’s Access to Markets: An Overview of Donor Programs and Best ...Dr Lendy Spires
“It is necessary to take a multi-dimensional perspective on poverty reduction. This includes ‘bottom-up growth strategies’ to encourage the broad-based rise of entrepreneurial initiatives” (UNIDO 2003:9). Women are a significant economic entrepreneurial force whose contributions to local, national and global economies are far reaching.
Women produce and consume, manage businesses and households, earn income, hire labor, borrow and save, and provide a range of services for businesses and workers. Women also produce more than 80 percent of the food consumed in Sub-Saharan Africa, 50-60 percent of all staples in Asia, and generate 30 percent of all food consumed in Latin America (see Annex 2, Box 8).
Women represent an increasing proportion of the world’s waged labor force and their activity rates are rising. In Africa, Asia, and Latin America, they are over one third of the officially enumerated workforce (WISTAT 2000). Women-run businesses can be found in emerging sectors such as the production and marketing of consumer goods, commercial banking, financial services, insurance, information services, communications, and transport.
As owners of SMEs, women furnish local, national and multinational companies with ideas, technology, supplies, components, and business services (Jalbert 2000). These activities are likely to prove fundamental as developing economies transition from primarily agricultural to industrial production and become more urbanized. Furthermore, as economies liberalize and open their borders, women-owned and operated SMEs are engaging in international trade—enhancing the prominence and visibility of women entrepreneurs globally.
Understanding how women access markets as producers and wage laborers is likely to prove critical for fostering pro-poor and inclusive economic growth. Analyzing where women are in the global supply chain and documenting the resources they use and transform will provide information about how to strengthen local economies and maximize forward and backward linkages.
Finally, reducing barriers to market access and enhancing women’s productivity will necessarily benefit both economies and households. Entrepreneurship and investment influence the rate and pattern of growth, the types of forward and backward linkages that develop in an economy, the labor demanded, and the human capital investment required to meet these labor demands (Ravallion 2004; Ranis, Stewart, and Ramírez 2000). Rapid growth can contribute to poverty reduction where that growth is broad-based and inclusive (OECD 2004).
The constraints of rural women in informal economic activities in imo state n...Dr Lendy Spires
This document summarizes a paper that analyzes the constraints faced by rural women engaged in informal economic activities in Imo State, Nigeria. It identifies key constraints such as lack of access roads, irregular transportation, inadequate access to credit, and difficulties accessing socio-economic services and land. These constraints adversely impact the participation and activities of rural women in the informal sector. The document also notes that rural women in Imo State have very limited access to institutional financing and socio-economic services that could help support their informal businesses. It concludes by calling for policies to help alleviate the difficulties faced by women working in the informal sector.
The document provides an overview of Kenya, including its demographics, economy, trade, and government finances. Some key points:
1) Kenya has a population of over 47 million people, with the majority living in rural areas and belonging to one of the five largest ethnic groups.
2) The economy has grown at an average of 5.5% annually in recent years, led by the services sector. Agriculture remains important, contributing a third of GDP and employing half the population.
3) Exports are led by tea, horticulture, and oil seeds. Imports are dominated by machinery, transportation equipment, and petroleum products. The trade deficit was over $13 billion in 2018.
4) Government debt
1. The document examines the informal sector in Alice, South Africa as a source of household income for poor urban residents. It explores the impact of the informal sector on livelihoods and suggests ways to improve its income-generating ability.
2. The informal sector faces many challenges, including lack of capital, complex regulations, and high transportation costs. The study investigates these challenges and proposes policy solutions to assist the sector and reduce poverty.
3. The research objectives are to determine if the informal sector provides income, assess the average income it provides, and examine problems facing informal businesses in Alice.
This document provides an introduction and literature review for a paper examining the role of the informal sector in promoting regional economic integration in West Africa. It discusses definitions of the informal sector and its importance as an employer, particularly for vulnerable groups. The paper aims to develop an Informal-Formal Sector Transmission Model to establish the link between the informal sector, market access, and regional integration. It argues that promoting the informal sector through market access could reduce poverty, conflicts, and encourage integration in West Africa. The methodology will use currency and monetary data from Nigeria to measure the informal sector, along with descriptive analysis and model development.
EFFECT OF POPULATION GROWTH ON THE ECONOMIC GROWTH OF CHINA Asif Mahmood Abbas
China is the world's second largest economy by nominal GDP $11.8 trillion. According to PPP its position is 1st 22.3 trillion 2017. Because it is known as global hub for manufacturing also China is the world's fastest growing consumer market and second largest importer of goods in the world.
This document summarizes a study of informal sector activities in Magaba, Harare, Zimbabwe. The study interviewed 184 informal sector operators and found that while some use the informal sector as a last resort, many are committed to their informal enterprises even if other options were available. The study also found stratification within the informal sector related to workplace tenure and economic activity, implying a need for differentiated policies. Most operators had experience in the formal sector but turned to the informal sector due to lack of employment opportunities or need to supplement income. Skills were largely acquired informally rather than through formal education.
Enhancing Women’s Access to Markets: An Overview of Donor Programs and Best ...Dr Lendy Spires
“It is necessary to take a multi-dimensional perspective on poverty reduction. This includes ‘bottom-up growth strategies’ to encourage the broad-based rise of entrepreneurial initiatives” (UNIDO 2003:9). Women are a significant economic entrepreneurial force whose contributions to local, national and global economies are far reaching.
Women produce and consume, manage businesses and households, earn income, hire labor, borrow and save, and provide a range of services for businesses and workers. Women also produce more than 80 percent of the food consumed in Sub-Saharan Africa, 50-60 percent of all staples in Asia, and generate 30 percent of all food consumed in Latin America (see Annex 2, Box 8).
Women represent an increasing proportion of the world’s waged labor force and their activity rates are rising. In Africa, Asia, and Latin America, they are over one third of the officially enumerated workforce (WISTAT 2000). Women-run businesses can be found in emerging sectors such as the production and marketing of consumer goods, commercial banking, financial services, insurance, information services, communications, and transport.
As owners of SMEs, women furnish local, national and multinational companies with ideas, technology, supplies, components, and business services (Jalbert 2000). These activities are likely to prove fundamental as developing economies transition from primarily agricultural to industrial production and become more urbanized. Furthermore, as economies liberalize and open their borders, women-owned and operated SMEs are engaging in international trade—enhancing the prominence and visibility of women entrepreneurs globally.
Understanding how women access markets as producers and wage laborers is likely to prove critical for fostering pro-poor and inclusive economic growth. Analyzing where women are in the global supply chain and documenting the resources they use and transform will provide information about how to strengthen local economies and maximize forward and backward linkages.
Finally, reducing barriers to market access and enhancing women’s productivity will necessarily benefit both economies and households. Entrepreneurship and investment influence the rate and pattern of growth, the types of forward and backward linkages that develop in an economy, the labor demanded, and the human capital investment required to meet these labor demands (Ravallion 2004; Ranis, Stewart, and Ramírez 2000). Rapid growth can contribute to poverty reduction where that growth is broad-based and inclusive (OECD 2004).
The constraints of rural women in informal economic activities in imo state n...Dr Lendy Spires
This document summarizes a paper that analyzes the constraints faced by rural women engaged in informal economic activities in Imo State, Nigeria. It identifies key constraints such as lack of access roads, irregular transportation, inadequate access to credit, and difficulties accessing socio-economic services and land. These constraints adversely impact the participation and activities of rural women in the informal sector. The document also notes that rural women in Imo State have very limited access to institutional financing and socio-economic services that could help support their informal businesses. It concludes by calling for policies to help alleviate the difficulties faced by women working in the informal sector.
The document provides an overview of Kenya, including its demographics, economy, trade, and government finances. Some key points:
1) Kenya has a population of over 47 million people, with the majority living in rural areas and belonging to one of the five largest ethnic groups.
2) The economy has grown at an average of 5.5% annually in recent years, led by the services sector. Agriculture remains important, contributing a third of GDP and employing half the population.
3) Exports are led by tea, horticulture, and oil seeds. Imports are dominated by machinery, transportation equipment, and petroleum products. The trade deficit was over $13 billion in 2018.
4) Government debt
1. The document examines the informal sector in Alice, South Africa as a source of household income for poor urban residents. It explores the impact of the informal sector on livelihoods and suggests ways to improve its income-generating ability.
2. The informal sector faces many challenges, including lack of capital, complex regulations, and high transportation costs. The study investigates these challenges and proposes policy solutions to assist the sector and reduce poverty.
3. The research objectives are to determine if the informal sector provides income, assess the average income it provides, and examine problems facing informal businesses in Alice.
South Africa has three capital cities - Pretoria, Cape Town, and Bloemfontein - and is led by President Cyril Ramaphosa. It has a population of over 58 million people and has experienced slow economic growth in recent years, with GDP per capita declining since 2012. The economy is centered around the services, industry and mining sectors, and has been further impacted by the COVID-19 pandemic through recession and currency devaluation. Key challenges include poor education and health systems, lack of infrastructure in rural areas, and high income inequality along racial lines.
1. Africa's aging population is growing, with those aged 65 and over accounting for 3.6% of the population in 2010, up from 3.1% in 1980. The aging population is projected to reach 4.5% by 2030 and nearly 10% by 2050.
2. Population aging in Africa presents challenges like increased healthcare needs and high rates of poverty among the elderly. Many elderly people also take care of orphaned grandchildren due to HIV/AIDS.
3. The drivers of population aging in Africa include improved healthcare leading to increased life expectancy, as well as declining fertility rates, similar to trends seen in developed countries. However, Africa faces weak social support systems for its growing elderly population.
Brazil is a politically and economically influential country in South America. It has a large population of 208 million people and the 9th largest economy in the world. While Brazil faces challenges like corruption and economic inequality, its middle class is growing rapidly. Brazilians highly value family and social media is widely used. Technological development is concentrated in Sao Paulo, but starting a business remains challenging due to regulations. The retail market is large at $600 billion and growing, though income inequality remains high.
Arguments for Industry Development in Low Income CountriesDr.Choen Krainara
This document discusses arguments for promoting industry development in low-income countries. It begins by defining key terms like industrialization, low-income countries, and examining the current state of industrialization globally and within low-income nations specifically. Over the past 30 years, low-income countries have lost significant ground and fallen further behind other developing and industrialized nations in terms of GDP per capita and manufacturing value added per capita. Promoting industry in low-income countries is necessary to help them effectively integrate into the global economy and overcome poverty.
Cities and agricultural transformation in Ethiopiaessp2
Urbanization is driving agricultural transformation in Ethiopia. Proximity to urban centers has a strong positive effect on teff farmers through higher output prices, wages, and land rental rates ("indirect effect"). It also lowers transaction costs and increases access to information and markets for inputs ("direct effect"), leading to greater use of inputs, higher productivity, and profits. Urbanization benefits intensification of staple crop production unlike population pressure alone. Policy should focus on infrastructure, urban growth, and input/knowledge availability to maximize these benefits.
Session II - Inequality in Malaysia: The Changing Contour of Income Distribut...KhazanahResearchInstitute
Malaysian Income Distribution in a Global Context
A Khazanah Nasional Berhad and Khazanah Research Institute Seminar
Session II - Income Distribution in Malaysia: Trends and Patterns
18 January 2018
2016 State of Women-Owned Businesses Executive ReportWBDC of Florida
This report analyzes trends in women-owned businesses in the US between 2007-2016. Some key findings include:
- The number of women-owned businesses grew 45% between 2007-2016, 5 times the national average growth rate of 9%. Employment in women-owned businesses grew 18% while overall employment declined 1%.
- Minority women-owned businesses saw the strongest growth, more than doubling in number. Nearly 80% of the 3.5 million net new women-owned businesses launched since 2007 were owned by women of color.
- The industries with the highest growth rates for women-owned businesses vary by ethnicity. For example, African American women are more likely to own hair/nail sal
Session III - Economic Inequality in Malaysia: Policy Responses by Prof Dr Jo...KhazanahResearchInstitute
Malaysian Income Distribution in a Global Context
A Khazanah Nasional Berhad and Khazanah Research Institute Seminar
Session III - Income Distribution in Malaysia: Policy Responses
18 January 2018
A study conducted under the initiative and supervision of meso IMPACT Finance, about the contribution of the financial services and the agricultural sector to the inclusive growth in the Philippines
Argentina which is located in the southern half of NORTH AMERICA and has the 8th largest economy in the world and 2nd largest in its own NORTH AMERICA.
sO, LET'S SEE EVERYTHING AND ALL ABOUT ARGENTINA AND ITS ECONMY
The document discusses several topics related to inclusive growth and democratic governance in Africa:
1) Africa has experienced strong economic growth in recent years but growth has failed to reduce inequality or poverty for many. Youth unemployment poses a challenge to stability and continued growth.
2) The Arab revolutions have inspired citizens across Africa and governments are taking action to address issues like inequality, poverty, employment and income distribution.
3) Barriers to inclusive growth in Africa include lack of government effectiveness, lack of economic diversification, lack of integration, and an unfriendly environment for business.
4) The AfDB aims to support inclusive growth through improving governance, infrastructure, private sector development, education, and addressing financial exclusion and
The document discusses the role of the informal economy in Phnom Penh, Cambodia. It finds that the informal economy provides around 90% of employment in Cambodia and is a major driver of the economy, contributing 60-80% of GDP. In Phnom Penh specifically, the informal sector is the primary employer and absorbs most new migrants to the city, as the formal sector cannot accommodate rapid population growth. Many informal workers in Phnom Penh are poor and live in slums, with their livelihoods threatened by harassment and lack of protections. Without formalizing and supporting the informal economy, poverty cannot be reduced and sustainable urban development cannot be achieved in Phnom Penh.
Implications of the colonial economic legacy on the prospects and future of e...iosrjce
IOSR Journal of Humanities and Social Science is a double blind peer reviewed International Journal edited by International Organization of Scientific Research (IOSR).The Journal provides a common forum where all aspects of humanities and social sciences are presented. IOSR-JHSS publishes original papers, review papers, conceptual framework, analytical and simulation models, case studies, empirical research, technical notes etc.
Non‐farm income and labor markets in rural Ethiopiaessp2
1) The rural off-farm economy in Ethiopia contributes 18% of total rural income, with wage income making up 10%. Wage and enterprise income are especially important for the poor.
2) Between 2004-2015, real rural wages in Ethiopia increased 54% while urban wages rose 64%. Higher agricultural and economic growth have driven wage increases.
3) Rising rural wages could increase mechanization and herbicide use in agriculture while reducing poverty. However, Ethiopia's wages remain lower than other countries, potentially affecting labor-intensive industries.
Informal employment refers to jobs or activities in the production and commercialisation of legal goods and services that are not registered or protected by the state. Informal workers are excluded from social security benefits and the protection afforded by formal labour contracts. The majority of them cannot opt for scarce better jobs in the formal sector. Others voluntarily opt out of the formal system. For them, the savings from being completely or partly informal – no social security contributions, no tax payments, no binding labour regulations, and more freedom for business activities – outweigh the benefits accrued through registration and compliance. The prevalence of informal employment in the developing world is striking. Even before the current crisis, over half of non-agricultural jobs there could be considered informal.
The informal economy in the southern african development community (sadc)Dr Lendy Spires
The document discusses the informal economy in Southern African Development Community (SADC) countries. It provides an overview of the size and importance of the informal economy in SADC nations, with available statistics showing that the majority of workers in countries like Zambia, Kenya, and South Africa are employed in the informal sector. The informal economy makes significant contributions to GDP in many developing countries. The document then outlines several challenges faced by informal workers, particularly women, such as lack of policy support, exploitation, barriers to organization and finance access. It concludes by outlining recommendations, including integrating the informal economy into decent work agendas, providing support services, and ensuring the participation of informal workers in policymaking.
Feminisation of agri, marginalisation_of_their_eco_stake 2005Sushil Kanathe
This document analyzes the increasing contribution of women to agricultural work in India while also highlighting their declining economic stake and marginalization. While women now make up a larger share of the agricultural workforce, they receive lower wages than men and have limited access to resources, credit, technology, education and better employment opportunities. Their work remains largely invisible and undervalued. As more men migrate out of agriculture for other jobs, women are left to take on more agricultural work with even less compensation. Overall, women's increasing role in agriculture has not improved their economic standing.
Women Workers in Informal Sector in India: Understanding the Occupational Vul...Dr Lendy Spires
Unorganised or informal sector constitutes a pivotal part of the Indian economy. More than 90 per cent of workforce and about 50 per cent of the national product are accounted for by the informal economy. A high proportion of socially and economically underprivileged sections of society are concentrated in the informal economic activities [1]. Informal employment is generally a larger source of employment for women than for men in the developing world. Other than in North Africa where 43 per cent of women workers are in informal employment, 60 per cent or more of women workers in the developing world are in informal employment(outside agriculture).
In sub-Saharan Africa 84 per cent of women non-agricultural workers; in Latin America 58 per cent for women in comparison to 48 percent for men. In Asia, the proportion of women and men non-agricultural workers in informal employment is roughly equivalentto Women and Men in the Informal Economy [2].The informal economy in India employs about 86 per cent of the country’s work force and 91 per cent of its women workers [3]. Many of these women workers are primary earners for their families. Their earnings are necessary for sheer survival. Low income women workers, especially in the informal sectorform one of the most vulnerable groups in the Indian economy.
The reasons for their vulnerability are-(a) irregular work, (b) low economic status, (c) little or no bargaining power, (d) lack of control over earnings, (e) need to balance paid work with care for children and homework, (f) little or no access to institutional credit, training and information, and (g) lack of assets. Unequal gender relations play a very important role in defining their insecurities. Given their vulnerable status at home and at work, income generation alone may not improve the socio-economic status of women attached to the informal sector. Their economic empowerment needs to go along with political empowerment, which could improve their bargaining power both in household and at work.
This means that organizing women workers in the informl economy could have beneficial impacts on their work and their life if such organizationcombines voices representation along with access to resources such as credit and information- a holistic strategy that provides political empowerment allied with economic empowerment.The present study aims at understanding the degree of vulnerabilityof the women workers in informal sector in India.
This document summarizes a study on the occupational vulnerability of women workers in India's informal sector. It finds that the informal sector employs about 86% of India's workforce and 91% of its women workers. Women in the informal sector face multiple vulnerabilities, including irregular work, low wages, lack of bargaining power, and need to balance work and unpaid domestic duties. The document then categorizes common occupations for women in the informal sector, such as rag picking, domestic work, vending, construction work, and garment work. It describes a survey conducted in the Indian state of Odisha to understand the living and working conditions of women in various informal occupations.
Strategy for reducing unemployment in nigeria the role of informal sectorDr Lendy Spires
This document discusses strategies for reducing unemployment in Nigeria through the role of the informal sector. It begins by noting that unemployment is a major problem in Nigeria, with the unemployment rate at 23.9% in 2011. The informal sector contributes about 60% of Nigeria's GDP and accounts for about 90% of jobs. However, workers in the informal sector often have unstable incomes and lack protections. The document then examines the large population engaged in the informal sector within Kogi State, categorizing it into productive, service, and financial sub-sectors. It hypothesizes that the informal sector both threatens and increases unemployment in Kogi State. The literature review discusses perspectives on unemployment and the role of the informal sector in employment generation in Nigeria.
South Africa has three capital cities - Pretoria, Cape Town, and Bloemfontein - and is led by President Cyril Ramaphosa. It has a population of over 58 million people and has experienced slow economic growth in recent years, with GDP per capita declining since 2012. The economy is centered around the services, industry and mining sectors, and has been further impacted by the COVID-19 pandemic through recession and currency devaluation. Key challenges include poor education and health systems, lack of infrastructure in rural areas, and high income inequality along racial lines.
1. Africa's aging population is growing, with those aged 65 and over accounting for 3.6% of the population in 2010, up from 3.1% in 1980. The aging population is projected to reach 4.5% by 2030 and nearly 10% by 2050.
2. Population aging in Africa presents challenges like increased healthcare needs and high rates of poverty among the elderly. Many elderly people also take care of orphaned grandchildren due to HIV/AIDS.
3. The drivers of population aging in Africa include improved healthcare leading to increased life expectancy, as well as declining fertility rates, similar to trends seen in developed countries. However, Africa faces weak social support systems for its growing elderly population.
Brazil is a politically and economically influential country in South America. It has a large population of 208 million people and the 9th largest economy in the world. While Brazil faces challenges like corruption and economic inequality, its middle class is growing rapidly. Brazilians highly value family and social media is widely used. Technological development is concentrated in Sao Paulo, but starting a business remains challenging due to regulations. The retail market is large at $600 billion and growing, though income inequality remains high.
Arguments for Industry Development in Low Income CountriesDr.Choen Krainara
This document discusses arguments for promoting industry development in low-income countries. It begins by defining key terms like industrialization, low-income countries, and examining the current state of industrialization globally and within low-income nations specifically. Over the past 30 years, low-income countries have lost significant ground and fallen further behind other developing and industrialized nations in terms of GDP per capita and manufacturing value added per capita. Promoting industry in low-income countries is necessary to help them effectively integrate into the global economy and overcome poverty.
Cities and agricultural transformation in Ethiopiaessp2
Urbanization is driving agricultural transformation in Ethiopia. Proximity to urban centers has a strong positive effect on teff farmers through higher output prices, wages, and land rental rates ("indirect effect"). It also lowers transaction costs and increases access to information and markets for inputs ("direct effect"), leading to greater use of inputs, higher productivity, and profits. Urbanization benefits intensification of staple crop production unlike population pressure alone. Policy should focus on infrastructure, urban growth, and input/knowledge availability to maximize these benefits.
Session II - Inequality in Malaysia: The Changing Contour of Income Distribut...KhazanahResearchInstitute
Malaysian Income Distribution in a Global Context
A Khazanah Nasional Berhad and Khazanah Research Institute Seminar
Session II - Income Distribution in Malaysia: Trends and Patterns
18 January 2018
2016 State of Women-Owned Businesses Executive ReportWBDC of Florida
This report analyzes trends in women-owned businesses in the US between 2007-2016. Some key findings include:
- The number of women-owned businesses grew 45% between 2007-2016, 5 times the national average growth rate of 9%. Employment in women-owned businesses grew 18% while overall employment declined 1%.
- Minority women-owned businesses saw the strongest growth, more than doubling in number. Nearly 80% of the 3.5 million net new women-owned businesses launched since 2007 were owned by women of color.
- The industries with the highest growth rates for women-owned businesses vary by ethnicity. For example, African American women are more likely to own hair/nail sal
Session III - Economic Inequality in Malaysia: Policy Responses by Prof Dr Jo...KhazanahResearchInstitute
Malaysian Income Distribution in a Global Context
A Khazanah Nasional Berhad and Khazanah Research Institute Seminar
Session III - Income Distribution in Malaysia: Policy Responses
18 January 2018
A study conducted under the initiative and supervision of meso IMPACT Finance, about the contribution of the financial services and the agricultural sector to the inclusive growth in the Philippines
Argentina which is located in the southern half of NORTH AMERICA and has the 8th largest economy in the world and 2nd largest in its own NORTH AMERICA.
sO, LET'S SEE EVERYTHING AND ALL ABOUT ARGENTINA AND ITS ECONMY
The document discusses several topics related to inclusive growth and democratic governance in Africa:
1) Africa has experienced strong economic growth in recent years but growth has failed to reduce inequality or poverty for many. Youth unemployment poses a challenge to stability and continued growth.
2) The Arab revolutions have inspired citizens across Africa and governments are taking action to address issues like inequality, poverty, employment and income distribution.
3) Barriers to inclusive growth in Africa include lack of government effectiveness, lack of economic diversification, lack of integration, and an unfriendly environment for business.
4) The AfDB aims to support inclusive growth through improving governance, infrastructure, private sector development, education, and addressing financial exclusion and
The document discusses the role of the informal economy in Phnom Penh, Cambodia. It finds that the informal economy provides around 90% of employment in Cambodia and is a major driver of the economy, contributing 60-80% of GDP. In Phnom Penh specifically, the informal sector is the primary employer and absorbs most new migrants to the city, as the formal sector cannot accommodate rapid population growth. Many informal workers in Phnom Penh are poor and live in slums, with their livelihoods threatened by harassment and lack of protections. Without formalizing and supporting the informal economy, poverty cannot be reduced and sustainable urban development cannot be achieved in Phnom Penh.
Implications of the colonial economic legacy on the prospects and future of e...iosrjce
IOSR Journal of Humanities and Social Science is a double blind peer reviewed International Journal edited by International Organization of Scientific Research (IOSR).The Journal provides a common forum where all aspects of humanities and social sciences are presented. IOSR-JHSS publishes original papers, review papers, conceptual framework, analytical and simulation models, case studies, empirical research, technical notes etc.
Non‐farm income and labor markets in rural Ethiopiaessp2
1) The rural off-farm economy in Ethiopia contributes 18% of total rural income, with wage income making up 10%. Wage and enterprise income are especially important for the poor.
2) Between 2004-2015, real rural wages in Ethiopia increased 54% while urban wages rose 64%. Higher agricultural and economic growth have driven wage increases.
3) Rising rural wages could increase mechanization and herbicide use in agriculture while reducing poverty. However, Ethiopia's wages remain lower than other countries, potentially affecting labor-intensive industries.
Informal employment refers to jobs or activities in the production and commercialisation of legal goods and services that are not registered or protected by the state. Informal workers are excluded from social security benefits and the protection afforded by formal labour contracts. The majority of them cannot opt for scarce better jobs in the formal sector. Others voluntarily opt out of the formal system. For them, the savings from being completely or partly informal – no social security contributions, no tax payments, no binding labour regulations, and more freedom for business activities – outweigh the benefits accrued through registration and compliance. The prevalence of informal employment in the developing world is striking. Even before the current crisis, over half of non-agricultural jobs there could be considered informal.
The informal economy in the southern african development community (sadc)Dr Lendy Spires
The document discusses the informal economy in Southern African Development Community (SADC) countries. It provides an overview of the size and importance of the informal economy in SADC nations, with available statistics showing that the majority of workers in countries like Zambia, Kenya, and South Africa are employed in the informal sector. The informal economy makes significant contributions to GDP in many developing countries. The document then outlines several challenges faced by informal workers, particularly women, such as lack of policy support, exploitation, barriers to organization and finance access. It concludes by outlining recommendations, including integrating the informal economy into decent work agendas, providing support services, and ensuring the participation of informal workers in policymaking.
Feminisation of agri, marginalisation_of_their_eco_stake 2005Sushil Kanathe
This document analyzes the increasing contribution of women to agricultural work in India while also highlighting their declining economic stake and marginalization. While women now make up a larger share of the agricultural workforce, they receive lower wages than men and have limited access to resources, credit, technology, education and better employment opportunities. Their work remains largely invisible and undervalued. As more men migrate out of agriculture for other jobs, women are left to take on more agricultural work with even less compensation. Overall, women's increasing role in agriculture has not improved their economic standing.
Women Workers in Informal Sector in India: Understanding the Occupational Vul...Dr Lendy Spires
Unorganised or informal sector constitutes a pivotal part of the Indian economy. More than 90 per cent of workforce and about 50 per cent of the national product are accounted for by the informal economy. A high proportion of socially and economically underprivileged sections of society are concentrated in the informal economic activities [1]. Informal employment is generally a larger source of employment for women than for men in the developing world. Other than in North Africa where 43 per cent of women workers are in informal employment, 60 per cent or more of women workers in the developing world are in informal employment(outside agriculture).
In sub-Saharan Africa 84 per cent of women non-agricultural workers; in Latin America 58 per cent for women in comparison to 48 percent for men. In Asia, the proportion of women and men non-agricultural workers in informal employment is roughly equivalentto Women and Men in the Informal Economy [2].The informal economy in India employs about 86 per cent of the country’s work force and 91 per cent of its women workers [3]. Many of these women workers are primary earners for their families. Their earnings are necessary for sheer survival. Low income women workers, especially in the informal sectorform one of the most vulnerable groups in the Indian economy.
The reasons for their vulnerability are-(a) irregular work, (b) low economic status, (c) little or no bargaining power, (d) lack of control over earnings, (e) need to balance paid work with care for children and homework, (f) little or no access to institutional credit, training and information, and (g) lack of assets. Unequal gender relations play a very important role in defining their insecurities. Given their vulnerable status at home and at work, income generation alone may not improve the socio-economic status of women attached to the informal sector. Their economic empowerment needs to go along with political empowerment, which could improve their bargaining power both in household and at work.
This means that organizing women workers in the informl economy could have beneficial impacts on their work and their life if such organizationcombines voices representation along with access to resources such as credit and information- a holistic strategy that provides political empowerment allied with economic empowerment.The present study aims at understanding the degree of vulnerabilityof the women workers in informal sector in India.
This document summarizes a study on the occupational vulnerability of women workers in India's informal sector. It finds that the informal sector employs about 86% of India's workforce and 91% of its women workers. Women in the informal sector face multiple vulnerabilities, including irregular work, low wages, lack of bargaining power, and need to balance work and unpaid domestic duties. The document then categorizes common occupations for women in the informal sector, such as rag picking, domestic work, vending, construction work, and garment work. It describes a survey conducted in the Indian state of Odisha to understand the living and working conditions of women in various informal occupations.
Strategy for reducing unemployment in nigeria the role of informal sectorDr Lendy Spires
This document discusses strategies for reducing unemployment in Nigeria through the role of the informal sector. It begins by noting that unemployment is a major problem in Nigeria, with the unemployment rate at 23.9% in 2011. The informal sector contributes about 60% of Nigeria's GDP and accounts for about 90% of jobs. However, workers in the informal sector often have unstable incomes and lack protections. The document then examines the large population engaged in the informal sector within Kogi State, categorizing it into productive, service, and financial sub-sectors. It hypothesizes that the informal sector both threatens and increases unemployment in Kogi State. The literature review discusses perspectives on unemployment and the role of the informal sector in employment generation in Nigeria.
Informal sector an african perspective prof derick blaauwDr Lendy Spires
The document discusses the informal sector in Africa and South Africa. It provides context on the origin and approaches to conceptualizing the informal sector. It then details key characteristics including that the informal sector absorbs a small proportion of the workforce in South Africa compared to other developing countries. It also notes that most informal sector work is long-term and those with less education have difficulty transitioning to formal employment. Finally, it discusses some policy recommendations around assisting informal workers through skills training, inclusive policies, and incorporating informal occupations into municipal systems.
The impact of globalisation on the informal sector in africaDr Lendy Spires
The informal sector plays a dominant role in African economies, accounting for around three-quarters of non-agricultural employment. Globalization and economic reforms have contributed to growth of the informal sector and a decline in formal sector jobs over recent decades. This poses a challenge for policymakers who seek to promote growth while improving conditions for informal workers. The paper aims to further understanding of the informal sector in Africa and how globalization impacts it, in order to recommend appropriate policy responses.
The impact of globalization on the infromal sctor in africaDr Lendy Spires
Globalization has impacted Africa's large informal sector in complex ways. The informal sector accounts for 72% of non-agricultural employment in sub-Saharan Africa and is characterized by low wages, long hours, and lack of protections relative to the formal sector. Globalization did not cause the informal sector to decline as initially expected, but rather informal employment grew rapidly in the 1990s. While globalization may bring both benefits and disadvantages, high barriers like lengthy registration processes and high costs of doing business help explain the persistence and growth of Africa's large informal economies. Policymakers face challenges in balancing job creation through the informal sector with improving conditions for informal workers.
Off-farm employment in rural areas can be a major contributor to rural poverty reduction and decent rural employment. While women are highly active in the agricultural sector, they are less active than men in off-farm employment. This study analyzes the determinants of participation in off-farm employment of women in rural Uganda. The study is based on a field survey conducted in nine districts with the sample size of 1200 individual females. A two-stage Hechman’s sample selection model was applied to capture women’s decision to participate and the level of participation in non-farm economic activities. Summary statistics of the survey data from rural Uganda shows that: i) poverty and non-farm employment has a strong correlation, implying the importance of non-farm employment as a means for poverty reduction; and ii) there is a large gender gap to access non-farm employment, but the gender gap has been significantly reduced from group of older age to younger generation. The econometric results finds that the following factors have a significant influence on women’s participation in off-farm employment: education level of both the individual and household head (positive in both stages); women’s age (negative in both stages); female-headed household (negative in first stage); household head of polygamous marriage (negative in both stages); distance from major town (negative in the first stage); household size (positive in the second stage); dependency ratio (negative in the second stage); access to and use of government extension services (positive in the first stage); access to and use of an agricultural loan (negative in the second stage); and various district dummies variables. The implications of these findings suggest that those policies aimed at enhancing the identified determinants of women off-farm employment can promote income-generating opportunities for women groups in comparable contexts. In order to capitalize on these positive linkages, policies should be designed to improve skills and knowledge by providing education opportunities and increasing access to employment training, assistance services and loans for non-farm activities and by targeting women in female-headed, large and distant households. The government should increase investments in public infrastructure and services, such as roads, telecommunications and emergency support.
This paper presents the Socioeconomic Performance of Women in parallel trading and its Implications in Dessie town Ethiopia. The study was carried out in Dessie town Ethiopia. Primary Data were gathered from parallel traders through questionnaire and observation, and secondary data sources were accessed from Dessie town trade and transport office and CSA (Central Statistical Agency). The paper has purely mixed explanatory sequential approach which is based on the collection and analysis of quantitative data to be followed and supported by a qualitative data. The finding of the study has shown that parallel trading is the first among alternatives for women’s divorced or widowed and dependent hitherto to parallel trading. Women in parallel trading were engaged in retails of food items that are easily accessed in the local markets, in which more than two-third of households are dependent on the gains as well as become involved in the retails activity. Though, the economic responses of parallel trading were the bases for women’s livelihood, its performance would not let women’s and their dependent family members /household to have better house and access to education. Furthermore, the study has shown that the socioeconomic performance of parallel trading were constrained by government regulations that exclude and discourage the trading, lack of access to finance, lack of premises and lack of smooth supply of inputs. Therefore, it is important for both local governments and organizations working on women affairs to reconsider their actions and create an environment encouraging for women in parallel trading to grow and integrate to formal economic sectors.
This document summarizes gender issues facing women in the Dominican Republic based on a presentation given by Prof. Yomayra J. Martinó Soto. Key points include:
1) Women face challenges such as early motherhood, lack of civil registration, machismo culture, labor discrimination, and domestic violence.
2) Efforts to address these issues include government gender policies and programs, as well as increasing women's participation in law, politics, and education.
3) Further promoting gender equality could increase women's economic participation, empowerment, and a country's overall competitiveness and development. Addressing issues like the gender pay gap, informal work, and violence against women is important.
1. The document discusses rural women empowerment in India and measures to strengthen their economic opportunities and development.
2. It notes that historically, women have had lower status than men and lacked rights to inherit property, education, credit, and decision making. Empowerment programs alone are not enough to improve women's quality of life.
3. The document proposes several measures to promote rural women's empowerment through self-employment opportunities and generating additional income, including identifying suitable income-generating activities, training to develop entrepreneurial skills, encouraging part-time work, and establishing support services.
The unformal sector in sub saharan africa - out of the shadows to forster sus...Dr Lendy Spires
This document discusses the growth of the informal sector in sub-Saharan Africa and its implications. It argues that the informal sector should be seen as a vibrant part of the economy rather than just a marginalized sector. The informal sector now provides the majority of employment across sub-Saharan Africa and makes up a large portion of GDP. The growth of the informal sector is due to factors like urban bias in development policies, restrictive labor laws, rural-urban migration, and structural adjustment policies. The document recommends establishing policies and regulations that support the growth of the informal sector in order to foster employment, economic growth, and equity.
The term "informal sector" is today widely used in writings on both developing and developed countries. It is invoked to refer to street vendors in Bogota, shoe-shine workers in Calcutta, specialised knitwear makers in Modena and producers of fashion garments in New York City.
What these activities appear to have in common is a mode of organisation different from the unit of production most familiar in economic theory, the firm or corporation. These activities are also likely to be unregulated by the state and excluded from standard economic accounts of national income. In this paper, I survey the literature on the "informal sector" in an attempt to understand the different applications of the term. I also wish to examine if it is possible and useful to arrive at a definition of the informal sector that can be applied to the different contexts, in the developing and developed world, in which the term is used.
I shall argue that different aspects of regulation by the state provide the key to identifying an informal sector. Research on activities encompassed by the term "informal sector" grew out of studies, in the fifties and sixties, on the dualistic nature of developing societies. The concept of dualism or a dual economy relates to various asymmetries in organisation and production, and dualism in the structure of an economy as between traditional and modern, peasant and capitalist sectors was considered to be a distinguishing characteristic of developing countries.
Development was seen in terms of a shift from a traditional to a modern, an unorganised to an organised, a subsistence to a capitalist economy. Models of dualistic development recognised the interactions between the two sectors and examined their implications for growth. In this literature, the pre-capitalist or traditional economy was expected to decline in relation to the growing capitalist or modern economy. In general, these models assumed a diminishing of the prevailing asymmetries over time and a slow disappearance of dualism in the course of development.
The distinction between formal and informal activities emerged from the attempts of scholars to apply the dualism framework to labour markets in urban areas of developing countries.
Women’s labour is a rich and valuable resource for a country as it can significantly boost growth prospects and improve socio-economic conditions as also ensure better outcomes for the next generation. Therefore, enhancing women participation in the labour force is a critical endeavour for driving overall social and sustainable development.
Despite positive growth and development parameters in the last 20-25 years, India has experienced a continuous decline in its female labour force participation rate (FLFPR). The total FLFPR declined sharply from 42.7% in 2004-05 to 31.2% in 2011-12 which further declined to 27.4% in 2015-2016. In 2013, International Labour Organization (ILO) ranked India’s FLFPR at 121 out of 130 countries, one of the lowest in the world. India also secured a poor rank in the Global Gender Gap Report 2017 by World Economic Forum, where it was ranked 108 out of 144 economies.
The largest drop in FLFPR took place in rural areas and was specifically prominent in the working age group of 20-44 years. This is a major factor that is responsible for pulling down the overall FLFPR. On the other hand, the urban FLFPR which has been historically lower than the rural FLFPR, has fluctuated.
This paper focuses on the gendered inequalities in the informal economy of Zimbabwe with specific reference to
Masvingo urban in Zimbabwe. The informal economy in Zimbabwe is made up of unregistered and unrecorded
statistics and therefore is not registered, supported or regulated by the Government. Women trading in the informal
economy have little or no access to organised markets, credit institutions, formal education and training institutions,
public services and amenities. Qualitative research methodology was used for the research. A case study research of
Masvingo urban in Zimbabwe was used, while data was collected using key informant interviews, semi-structured
interviews, observations and documentary search. The findings of the study indicates that women in the informal
economy are affected by environmental, political, economic, social and personal constraints. Women are
concentrated in this sector due to the value system in the society; fewer skills required for the jobs in this sector,
technological advancement, and the traditional roles assigned to them. The study concludes that gender-sensitive
macro-economic policies are an important enabler to address gender inequalities in the informal economy as they
shape the economic environment for women’s empowerment. The study recommends that local authorities should
come up gender-responsive policies to enable women to operate in an environment that has decent infrastructure for
vending, free from police and sexual harassment and adequate security.
Harnessing the potentials of informal sector women for development in ghanaDr Lendy Spires
This study examines the role of women in Ghana's informal sector and argues for increased support. It finds that women dominate the major economic sectors like agriculture, services, and industry, but their contributions are often overlooked, hindering economic growth. The informal sector provides most employment in developing countries like Ghana, yet productivity is low due to lack of support. The study aims to understand women's roles and challenges in rural informal work and identify ways to better support the sector and promote long-term development.
Over the past century, The Rockefeller Foundation has remained true to the pursuit of health access for all mankind. We have helped to build and develop schools of medicine and public health, contributed to new medicines and treatments that helped cure patients and advanced the field of health. Our long history has given the foundation a unique place in the field of global health. We have the ability and privilege to convene great minds, catalyze new initiatives, identify new opportunities and increase global health and wellbeing.
Putting Women at the Centre of the Post 2015 Economic Transformation AgendaDr Lendy Spires
This document discusses the importance of women's economic empowerment for achieving inclusive economic transformation in a post-2015 development framework. It argues that a new framework must tackle gender inequality and structural barriers that undermine women's full and equal participation in the economy. These barriers include unequal responsibility for unpaid care work, lack of access to decent work and financial resources, and violence against women. The document advocates for a post-2015 goal on gender equality that addresses these issues and recognizes women's economic rights and contributions.
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WOMEN IN THE INFORMAL SECTOR: A GLOBAL PICTURE, THE GLOBAL MOVEMENT
1. WOMEN IN THE INFORMAL SECTOR:
A GLOBAL PICTURE, THE GLOBAL MOVEMENT
By
Martha Alter Chen
Horner Professor, Radcliffe Institute for Advanced Study
Lecturer in Public Policy, Kennedy School of Government
Coordinator, WIEGO
I. THE INFORMAL SECTOR
Over the past two decades, employment in the informal sector has risen rapidly in all
regions in the world. Until the recent Asian economic crisis, it was only the once-rapidly-
growing economies of East and Southeast Asia that experienced substantial
growth of modern sector employment. However, in the wake of that crisis, most of these
countries have experienced a decline in formal wage employment and a concomitant rise
in informal employment. Even before the crisis, official statistics indicated that the
informal sector accounted for over half of total non-agricultural employment in Latin
America and the Caribbean, nearly half in East Asia, and as much as 80 percent in other
parts of Asia and in Africa.1 And, in terms of urban employment, the informal sector
accounted for well over half in Africa and Asia and a quarter in Latin America and the
Caribbean.
The contribution of the informal sector – not only its size - is quite large. The
contribution of informal sector income to total household income is significant in many
regions: for example, in several African countries, informal sector income accounts for
nearly 30 percent of total income and over 40 percent of total urban income. The
contribution of the informal sector to gross domestic product (GDP) is probably also
significant. For those countries where estimates exist, the share of the informal sector in
non-agricultural GDP is between 45 to 60 percent.
Table 1: SIZE OF THE INFORMAL SECTOR
INFORMAL SECTOR
AS SHARE OF LATIN
AMERICA
CARRIBEAN
AFRICA ASIA
Non-agricultural
employment
57% 78% 45-85%
Urban employment 40% 61% 40-60%
New jobs 83% 93% NA
Source: Charmes 1998a (updated 2000).
1 All data presented in this paper are from official labor force statistics and national accounts that have been
personally compiled by Jacques Charmes. Some of the data have been published in different publications,
including: Charmes 1998a, 1998b, and 2000; UN 2000.
2. 2
Estimates of the size, contribution, and composition of the informal sector vary widely,
according to what size of ent erprises are included, whether agriculture is included, and
how much of women’s informal work is included. Like others who have worked closely
with women in the informal sector, I would argue that the informal sector is even larger
than official statistics suggest. Our argument is based on the fact that much of women's
paid work - not just their unpaid housework - is not counted in official statistics. If the
magnitude of women's invisible paid work, particularly home-based remunerative work,
were to be fully counted, both the share of women and the share of informal workers in
the work force would increase. Recognizing and, more importantly, counting women's
invisible remunerative work would challenge our empirical understanding not only of
the informal sector but also of the economy as a whole.
Why should we be concerned about women who work in the informal sector? There is a
significant overlap between being a woman, working in the informal sector, and being
poor. There is also a significant overlap between being a woman, working in the informal
sector, and contributing to growth. This paper examines the evidence on the linkages
between gender, informality, poverty, and growth; postulates some possible explanations
of these linkages; and describes the global movement of women in the informal sector.
II. THE FEMALE INFORMAL WORKFORCE
Size and Composition -
Women are over-represented in the informal sector worldwide. This basic fact has
several dimensions. Firstly, the informal sector is the primary source of employment for
women in most developing countries. Existing data suggest that the majority of
economically active women in developing countries are engaged in the informal sector.
In some countries in sub-Saharan Africa, virtually all of the female non-agricultural labor
force is in the informal sector: for example, the informal sector accounts for over 95
percent of women workers outside agriculture in Benin, Chad, and Mali. In India and in
Indonesia, the informal sector accounts for nine out of every ten women working outside
agriculture. In ten Latin American and four East Asian countries, for which data are
available, half or more the female non-agricultural workforce is in the informal sector.
Secondly, the informal sector is a larger source of employment for women than for men
(UN 2000). The proportion of women workers in the informal sector exceeds that of
men in most countries. Thirdly, women’s share of the total informal workforce outside of
agriculture is higher than men’s share in 9 out of 21 developing countries for which data
are available (Ibid.).
3. 3
Table 2: SHARE OF NON–AGRICULTURAL WORKFORCE, FEMALE AND
MALE, IN INFORMAL SECTOR AND WOMEN’S SHARE OF
INFORMAL SECTOR
Percentage of non-agricultural
labor force
that is in the informal
sector, 1991/1997
Women’s share of the
informal sector in the
non-agricultural labor
force, 1991/1997
Women Men
Africa
Benin
Chad
Guinea
Kenya
Mali
South Africa
Tunisia
97
97
84
83
96
30
39
83
59
61
59
91
14
52
62
53
37
60
59
61
18
Latin America
Bolivia
Brazil
Chile
Colombia
Coast Rica
El Salvador
Honduras
Mexico
Panama
Venezuela
74
67
44
44
48
69
65
55
41
47
55
55
31
42
46
47
51
44
35
47
51
47
46
50
40
58
56
44
44
38
Asia
India
Indonesia
Philippines
Thailand
91
88
64
54
70
69
66
49
23
43
46
47
Source: The United Nations, 2000. The World’s Women 2000: Trends and Statistics. Chart 5.13, p. 122
The composition of the female informal workforce varies somewhat across regions. In
many African countries, almost all women in the informal sector are either self-employed
or contributing family workers. In many countries in Latin America and Asia, although
the majority of workers are self-employed or contributing family members, at least 20
percent of women in the informal sector are casual wage workers. Since they are not
fully captured in official statistics, an unknown additional percent work as industrial
outworkers or homeworkers. But differences between men and women outweigh
differences between women in the informal sector. Compared to the male informal
workforce, women in the informal sector are more likely to be own account workers and
4. 4
subcontract workers and are less likely to be owner operators or paid employees of
informal enterprises. These gender-based differences in employment status within the
informal sector have implications for relative earnings and poverty levels, as will be
discussed below.
Major Segments -
The vast majority of women in the informal sector are home-based workers or street
vendors.
Home-Based Workers: As used here, the term “home-based workers” refers to three types
of workers who carry out remunerative work with their homes – dependent subcontract
workers, independent own account producers, and unpaid workers in family businesses –
whereas the term “homeworkers” refers to the first category only. Despite the
limitations to existing official statistics, available evidence suggests that home-based
work is an important source of employment, especially for women, throughout the world:
over 85 percent of home-based workers in most countries are women.
Despite working from their homes, many home-based workers are linked to the global
economy through global subcontracting chains, also called global value chains. A key
dimension of global integration of the economy is a restructuring of production and
distribution into global value chains. In these “global assembly lines”, lead firms place
orders or outsource to suppliers who put out work to sub-contractors who operate small
production units or, in turn, put out production to homeworkers (Carr et al 2000).
Street Vendors: In all countries where data is available, informal traders – mainly street
vendors - represent a very high proportion (73-99%) of employment in trade and a
significant share (50-90%) of trade gross domestic product (GDP). Considered another
way, street vendors constitute a significant share of total employment in the informal
sector and street vending units constitute a significant share of total enterprises in the
informal sector. Women account for more than 50 percent - and up to 90 percent - of
informal employment in trade, except in those countries (such as Tunisia and India)
where social norms restrict women’s mobility outside the home. Consider the case of
Benin: a 1992 survey of 10 major cities in that country found that street vendors
constitute 80 percent of all economic units, women constitute 75 percent of all street
vendors, and women street vendors constitute 26 percent of urban informal labor force
and 24 percent of the total urban labor force.
5. 5
Table 3: SIZE AND CONTRIBUTION OF INFORMAL SECTOR IN TRADE
AND WOMEN TRADERS IN INFORMAL TRADE
Informal Sector as a Share of: Women Traders as a Share of:
Total Trade
Total
Employment
Trade GDP
Total Informal
Trade
Employment
Total Informal
Trade GDP
AFRICA
Benin 99.1 69.8 92.2 64.3
Burkina Faso 94.7 45.7 65.9 30.1
Chad 99.2 66.7 61.8 41.2
Kenya 84.9 61.5 50.2 27.3
Mali 98.1 56.7 81.3 46.1
Tunisia 87.6 55.6 7.9 4.4
ASIA
India 96.4 90.0 12.4 11.2
Indonesia 93.0 77.2 49.3 38.0
Philippines 73.1 52.3 72.0 21.6
Source: Charmes 1998b.
III. POVERTY AND GROWTH LINKAGES
What are the links between being a woman, working in the informal sector, and being
poor? There is an overlap between working in the informal economy and being poor: a
higher percentage of people working in the informal sector, relative to the formal sector,
are poor. This overlap is even greater for women than for men. However, there is no
simple relationship between working in the informal economy and being poor or working
in the formal economy and escaping poverty.
Informal workers typically lack the social protection afforded to formal paid workers,
such as worker benefits and health insurance, and typically work under irregular and
casual contracts. However, the precise relationship between informal employment and
the intensity of poverty appears only when informal workers are disaggregated by sub-sectors
of the economy, status of employment (i.e., employer, self-employed, worker),
and gender, as summarized in the Box 1 below:
6. 6
BOX 1: GENDER, INFORMALITY, AND POVERTY2
Gender and Employment in the Informal Economy:
¨ the majority of women in the informal sector are own account traders and producers
or casual and subcontract workers; relatively few are employers who hire paid workers
¨ men and women tend to be involved in different activities or types of employment
even within the same trades: in many countries, for example, male traders tend to have
larger scale operations and to deal in non-food items while female traders tend to have
smaller scale operations and to deal in food items
Gender and Incomes in the Informal Economy:
¨ average incomes of both men and women are lower in the informal sector than in the
formal sector
¨ the gender gap in income/wages appears higher in the informal sector than in the
formal sector and exists even when women are not wage workers
¨ the relatively large gender gap in income/wages in the informal sector is largely due
to two interrelated factors:
§ informal incomes worldwide tend to decline as one moves across the
following types of employment: employer – self-employed – casual wage
worker – sub-contract worker
§ women worldwide are under-represented in high income activities and
over-represented in low income activities (notably, subcontract work)
What are the links between being a woman, working in the informal sector, and
contributing to growth? Even though the average earnings of women in the informal
sector are low, the female informal workforce contributes significantly to gross domestic
product (GDP). As seen in Table 3 above, women informal traders contribute a
significant share (20-65%) of GDP in the trading sector. For those countries where data is
available, the contribution of wo men in the informal sector to total GDP is greater than
their share of employment in the informal sector. This is because women are more likely
than men to engage in multiple activities in the informal sector.
Arguably, the most invisible informal workers – homeworkers or industrial outworkers -
contribute the most to global trade. This is because homeworkers often comprise a
2 This box summarizes the findings of two papers commissioned by the World Bank and written by S.V.
Sethuraman (Independent Consultant, ex-ILO) and Jacques Charmes (Institute of Development Research
and University of Versailles, France) who reviewed the existing literature and statistics, respectively, on the
links between gender, poverty, and the informal sector.
7. 7
significant share of the workforce in key export industries, particularly those that involve
simple manual tasks, labor- intensive operations, simple machines, or portable
technology. For instance, homework is predominant in clothing and textile industries,
the leather and footwear industries, carpet making, and, increasingly, electronics. In
Asia and Latin America, for example, homeworkers account for 30-60 percent of the
workforce in key export industries such as textiles, garments, and footwear (Chen et al
1999).
Why do so many women who work in the informal sector remain poor despite their
contributions to the economy? There is no simple answer to this complex question. To
begin with, we need to understand why the informal sector has persisted and expanded in
recent decades. Some mix of the following factors might help explain the persistence and
expansion of the informal sector in different countries: the rate and pattern of growth,
including the labor-intensity and sectoral composition of growth; economic restructuring
or economic crisis, including privatization of public enterprises and cut-backs in public
expenditures; and global integration of the economy, including the restructuring of global
production characterized by outsourcing or subcontracting.
Furthermore, we would need to understand why women are over-represented in the
informal sector and why women are concentrated in certain segments within the informal
sector. Many observers argue that women are less able than men to compete in labor,
capital, and product markets because they have relatively low levels of education and
skills or are less likely to own property or have market know-how. Other observers argue
that women’s time and mobility are constrained by social and cultural norms that assign
the responsibility for social reproduction to women and discourage investment in
women’s education and training.
In today’s globalizing world, various demand factors are also at work. An increasing
share of informal work is subcontracted from the formal sector; the low costs of
subcontracted work contribute to profits in the formal sector. In their pursuit of global
competitiveness, employers in a wide range of key export industries favor the kinds of
employment relations associated, rightly or wrongly, with women, namely those with
insecure contracts, low wages, and few benefits. Self-employed women producers are
also affected by current trends. Given the rapid shifts in market demand, both
domestically and globally, self-employed women producers find it difficult to retain their
traditional market niche or negotiate access to emerging markets.
While many factors help explain the persistence and expansion of the informal economy,
urbanization and globalization are of particular concern. There is ample evidence to
suggest that many of those who migrate to cities in search of jobs find work in the
informal (rather than the formal) economy. There is also evidence to suggest that global
integration and competition are associated with the erosion of both the employment
arrangements of workers and the competitiveness of micro businesses. These trends have
put pressures on the efforts by home-based workers and street vendors to earn their
livelihoods. Yet the fact that homeworkers produce goods at low costs contributes to the
competitiveness and profits of the large companies who subcontract out production; and
8. 8
the fact that street vendors sell goods at low costs to low- and medium-income consumers
contributes to the viability of cities worldwide.
The contemporary pressures on the informal workforce are partly the result of
overcrowding and competition within the informal sector. But these pressures stem
largely from competition between informal traders or producers and larger, more
powerful economic agents. From the perspective of street vendors, urbanization has
privileged large traders, the transport industry, and real estate agents in the competition
for urban space. Consider the collusion of wholesale traders or truckers with the police to
evict street vendors from market areas or major thoroughfares that are typical of most
cities around the world. From the perspective of home-based workers, market
liberalization and integration has privileged the owners and managers of larger and more
powerful economic units, especially transnational corporations. What greater contrast
could there be than that between the large brand name firms that subcontract out
production all over the world and the home-based women who produce from their homes
for these subcontracting chains?
IV. THE GLOBAL MOVEMENT OF WOMEN IN THE INFORMAL SECTOR
During the 1980s, various trade unions, grassroots organizations, and non-governmental
organizations working with home-based workers and street vendors – in both the North
and the South – began to establish linkages. In the mid-1990s, at two separate meetings
in Europe, these organizations came together to form two international alliances of
women in the informal economy: one of home-based workers called HomeNet, the other
of street vendors called StreetNet. At the first StreetNet meeting in 1995, the founding
members drafted an International Declaration that sets forth a plan to promote national
policies to support and protect the rights of street vendors.
At the first HomeNet meeting in 1994, the founding members planned a global campaign
for an international convention that would recognize and protect home-based workers.
The culmination of that campaign was the June 1996 vote at the annual general
conference of the International Labour Organization (ILO) in favor of an international
convention on homework. During the final year of the campaign, HomeNet
commissioned researchers at Harvard University to compile available statistics on
homework for dissemination at the 1996 ILO annual conference and requested the United
National Development Fund for Women (UNIFEM) to convene a policy dialogue in Asia
with government delegations to the ILO conference. These initiatives contributed to a
complicated negotiation process leading to the eventual ratification of the ILO
Convention on Homework in 1996. Recently, the Government of India asked
representatives of the Self-Employed Women’s Association (SEWA) – who are also
founding members of HomeNet, StreetNet, and WIEGO - to participate in a process to
formulate a national policy on home-based work.
Recognizing the power of the joint action of grassroots organizations, research
institutions, and international development agencies, the founders of HomeNet and
StreetNet, the author of this paper, and representatives from UNIFEM decided to
9. 9
establish a global research-policy network to promote better statistics, research,
programs, and policies in support of women in the informal economy. This network
called Women in Informal Employment: Globalizing and Organizing (WIEGO) was
established in early 1997. Through a consultative planning process, WIEGO identified
five priority areas for its work: urban policies to promote and protect street vendors;
global trade and investment policies to maximize opportunities – and minimize threats –
associated with globalization for home-based workers; social protection measures for
women who work in the informal economy; organization of women in the informal
economy and their representation in relevant policy- making bodies and institutions at the
local, national, and international levels; and statistics on the size and contribution of the
informal economy.
HomeNet now has active member organizations in over 25 countries and publishes a
newsletter that reaches organizations in over 130 countries. WIEGO now has affiliates in
over 25 countries as well as project partners and activities in over a dozen countries. At
the international level, WIEGO has been effective at raising the visibility of the informal
economy in public policy fora and at working with the ILO and the UN Statistics
Division to improve statistics on the informal economy. StreetNet has affiliates in about
a dozen countries and, together with WIEGO, has established integrated research-policy
projects in three countries (Kenya, South Africa, and India). In South Africa, the joint
action of grassroots organizers and academic researchers to raise the visibility and voice
of street traders has prompted the Durban City Council to initiate a remarkable
consultative planning process to formulate urban policies in support of the informal
economy. The global movement comprised of HomeNet, StreetNet, and WIEGO – and
their affiliates - is a unique example of the joint action of grassroots organizations of the
poor with research institutions and international development agencies and, more
importantly, represents a fast-expanding international movement of low-income women
who work in the informal economy.
10. 10
REFERENCE LIST:
Carr, Marilyn, Martha A. Chen, and Jane Tate. 2000. “Globalization and Home-based
Workers”, in Feminist Economics Vol. 6, No. 3, pp. 123-142.
Charmes, Jacques. 1998a. “ Informal Sector, Poverty and Gender: A Review of
Empirical Evidence.” Background paper for World Bank, World Development Report
2000. Washington, D.C. (updated in 2000).
______________. 1998b. “Street Vendors in Africa: Data and Methods.” New York:
United Nations Statistical Division.
_______________. 2000. Background paper for UN Statistical Division, The World’s
Women 2000: Trends and Statistics.
Chen, Martha, Jennefer Sebstad, and Lesley O’Connell. 1999. “Counting the Invisible
Workforce: The Case of Homebased Workers”, in World Development Vol. 27, No. 3,
pp. 603-610.
Sethuraman, S.V. 1998. “ Gender, Informality, and Poverty: A Global Review.”
Background paper for World Bank, World Development Report 2000. Washington,
D.C..
UN. 2000. The World’s Women 2000: Trends and Statistics. New York: UN Statistical
Division.