The document summarizes international standards for measuring informal employment adopted by the International Conference of Labour Statisticians in 1993 and 2003. The 1993 standards defined employment in the informal sector based on characteristics of informal enterprises. The 2003 standards complemented this with a definition of informal employment, which includes jobs in informal enterprises as well as informal jobs in formal enterprises or households according to certain criteria like lack of employment contracts or social protections. The standards provide a framework to distinguish between informal sector employment and broader informal employment while ensuring definitions are coherent and comparable internationally.
This document discusses international and national definitions of the informal sector. It summarizes that the 15th International Conference of Labour Statisticians adopted an international statistical definition of the informal sector in 1993 based on characteristics of unincorporated enterprises. However, national definitions vary in terms of data sources, coverage, criteria used to define the informal sector, and treatment of specific groups. These differences affect the international comparability of informal sector statistics. Harmonizing national definitions with the international framework would enhance comparability.
Concepts, Definitions and Sub-Classifications of Informal Sector and Informal...Dr Lendy Spires
This document provides an overview of concepts, definitions, and classifications related to the informal sector and informal employment. It discusses the key definitions and recommendations from the 15th and 17th International Conference of Labour Statisticians (ICLS) on defining and measuring the informal sector and informal employment. The informal sector is defined based on the characteristics of production units (enterprises), while informal employment focuses on the characteristics of jobs. The document also discusses links between the informal sector/employment concepts and the non-observed economy, and provides recommendations to enhance international comparability of related statistics.
Options for generating indicators on the informal economy using the labour fo...Dr Lendy Spires
1) There are three options for measuring employment in the informal economy using labour force surveys: focusing on self-employed workers, all employed persons, or a combination. The paper recommends the self-employed or all employed persons approaches depending on local conditions.
2) Proxy indicators for informality can be derived from existing labour force survey data in Caribbean countries. For some countries only employment in informal own-account enterprises can be estimated, while countries with additional data points can estimate three components of informal employment.
3) The paper provides guidelines and examples for national statistical offices to generate proxy indicators, including applying the methods to Barbados and Trinidad and Tobago labour force surveys.
The document discusses the unorganized sector in India, which consists of small businesses and workers without formal worker protections. It provides key statistics on the sector's large contributions to employment and GDP. The unorganized sector faces many problems, such as lack of regulations, social security, access to capital, and unfair competition from organized businesses. The government has launched initiatives to address these issues and provide health insurance to unorganized workers.
This document discusses social security for unorganized workers in India. It begins by discussing the International Labour Organization's emphasis on comprehensive social security. It then discusses social security provisions in the Indian constitution. It defines unorganized workers and sectors in India, which make up 93% of the workforce. The document outlines various central and state government welfare schemes for unorganized workers relating to health insurance, life insurance, pensions, housing, education, skills training, and more. It discusses the implementation of the Unorganized Workers Social Security Act of 2008 which established boards to formulate and review social security schemes.
Industrial relations - Self-employed workers: industrial relations and workin...Eurofound
This document summarizes a report on trends in self-employed work. It discusses definitions of self-employment, incidence rates across countries and demographics, social security coverage for self-employed workers in different systems, interest representation by unions and employers organizations, and employment and working conditions. Key findings include the diverse and changing nature of self-employment, extensions of social security coverage in some places but below employee levels, and increasing attention from unions indicating demands for protection from some self-employed workers.
What are the links between being a woman, working in the informal sector, and contributing to growth?
At 17%, India has a lower share of women's contribution to GDP than the global average of 37%.
This document provides an overview of the contingent workforce environment in several Asian countries, including China, India, Indonesia, Japan, Korea, Malaysia, and Singapore. It discusses the staffing industry, regulations around contingent workers, and key details regarding the contingent workforce in each country. The regulations discussed include restrictions on the types of jobs contingent workers can hold, tenure limits, equal pay requirements, and rules around converting contingent workers to permanent employees. The document provides information on GDP, languages, major industries and the ease of doing business in each country.
This document discusses international and national definitions of the informal sector. It summarizes that the 15th International Conference of Labour Statisticians adopted an international statistical definition of the informal sector in 1993 based on characteristics of unincorporated enterprises. However, national definitions vary in terms of data sources, coverage, criteria used to define the informal sector, and treatment of specific groups. These differences affect the international comparability of informal sector statistics. Harmonizing national definitions with the international framework would enhance comparability.
Concepts, Definitions and Sub-Classifications of Informal Sector and Informal...Dr Lendy Spires
This document provides an overview of concepts, definitions, and classifications related to the informal sector and informal employment. It discusses the key definitions and recommendations from the 15th and 17th International Conference of Labour Statisticians (ICLS) on defining and measuring the informal sector and informal employment. The informal sector is defined based on the characteristics of production units (enterprises), while informal employment focuses on the characteristics of jobs. The document also discusses links between the informal sector/employment concepts and the non-observed economy, and provides recommendations to enhance international comparability of related statistics.
Options for generating indicators on the informal economy using the labour fo...Dr Lendy Spires
1) There are three options for measuring employment in the informal economy using labour force surveys: focusing on self-employed workers, all employed persons, or a combination. The paper recommends the self-employed or all employed persons approaches depending on local conditions.
2) Proxy indicators for informality can be derived from existing labour force survey data in Caribbean countries. For some countries only employment in informal own-account enterprises can be estimated, while countries with additional data points can estimate three components of informal employment.
3) The paper provides guidelines and examples for national statistical offices to generate proxy indicators, including applying the methods to Barbados and Trinidad and Tobago labour force surveys.
The document discusses the unorganized sector in India, which consists of small businesses and workers without formal worker protections. It provides key statistics on the sector's large contributions to employment and GDP. The unorganized sector faces many problems, such as lack of regulations, social security, access to capital, and unfair competition from organized businesses. The government has launched initiatives to address these issues and provide health insurance to unorganized workers.
This document discusses social security for unorganized workers in India. It begins by discussing the International Labour Organization's emphasis on comprehensive social security. It then discusses social security provisions in the Indian constitution. It defines unorganized workers and sectors in India, which make up 93% of the workforce. The document outlines various central and state government welfare schemes for unorganized workers relating to health insurance, life insurance, pensions, housing, education, skills training, and more. It discusses the implementation of the Unorganized Workers Social Security Act of 2008 which established boards to formulate and review social security schemes.
Industrial relations - Self-employed workers: industrial relations and workin...Eurofound
This document summarizes a report on trends in self-employed work. It discusses definitions of self-employment, incidence rates across countries and demographics, social security coverage for self-employed workers in different systems, interest representation by unions and employers organizations, and employment and working conditions. Key findings include the diverse and changing nature of self-employment, extensions of social security coverage in some places but below employee levels, and increasing attention from unions indicating demands for protection from some self-employed workers.
What are the links between being a woman, working in the informal sector, and contributing to growth?
At 17%, India has a lower share of women's contribution to GDP than the global average of 37%.
This document provides an overview of the contingent workforce environment in several Asian countries, including China, India, Indonesia, Japan, Korea, Malaysia, and Singapore. It discusses the staffing industry, regulations around contingent workers, and key details regarding the contingent workforce in each country. The regulations discussed include restrictions on the types of jobs contingent workers can hold, tenure limits, equal pay requirements, and rules around converting contingent workers to permanent employees. The document provides information on GDP, languages, major industries and the ease of doing business in each country.
The document discusses the concept of the informal sector and informal employment in India. It notes that N.O.V.I is an organization established to act as a bridge between vulnerable informal sector workers and the government. Its main aim is to ensure proper flow of funds and facilities to this sector. N.O.V.I will provide a unique identification system to accurately target informal workers and will work to coordinate existing government welfare programs and services for these workers. It discusses the methodology, facilities, and role of government that N.O.V.I plans to implement.
A look at the Contingent Workforce Environment in AsiaSameer Srivastava
Shares overview of the current contingent workforce scenario in China, India, Indonesia, Malaysia, Japan, Singapore and South Korea. Has details on Contingent Workforce Regulations and demographic details which include legal, GDP, languages and information on the major industries.
The document discusses disability laws and policies in Hungary. It notes that approximately 5-10% of Hungary's population is considered disabled, with the most common disabilities being physical (44%), visual impairment (14%), and mental disabilities (10%). The document outlines anti-discrimination laws and policies aimed at promoting equal opportunities, independent living, and social inclusion for the disabled. It also discusses employment programs and quotas to help increase disabled employment.
The document discusses the Joint Consultative Machinery (JCM) scheme and attitudes/skills in grievance handling and motivation. The JCM is a platform for constructive dialogue between staff and officials to peacefully resolve disputes. It aims to promote cooperation and efficiency in public services. The JCM operates at the national, departmental, and regional/office levels. Effective grievance handling involves prompt action, careful examination of issues, preventing future grievances through policy decisions based on analysis, and facilitating resolution.
The document summarizes several key labor laws in India, including the Industrial Disputes Act, Trade Unions Act, Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, Employees' Provident Funds and Miscellaneous Provisions Act, and Employees' State Insurance Act. It provides details on the scope and requirements of each law, such as definitions of employees and wages, minimum wage rates, timely payment of wages, bonus eligibility and calculation, provident fund contributions and transfers, and medical benefits for employees.
This document discusses equal opportunities and discrimination in the Lithuanian labor market. It outlines the main laws prohibiting discrimination based on characteristics like race, ethnicity and language. While discrimination is officially rare, complaints are not always effective and few cases are brought to court. Refugees and ethnic minorities face difficulties entering the job market like lack of language skills, negative employer attitudes and non-recognition of qualifications. More research is needed on the frequency of discrimination and racism in employment.
This document provides information on regulatory requirements for starting and growing a business in Bangladesh. It identifies the key institutions involved in business registration, environmental compliance, labor market regulations, and reform efforts. The document summarizes the process for registering a business in Bangladesh, which involves obtaining name clearance, paying fees, submitting documents, and registering for taxes. It also lists the laws governing business activities in areas such as taxation, investment, banking, trade and more. Overall the document serves as a diagnostic of the regulatory landscape for businesses in Bangladesh.
Labour law addresses the relationship between employers, employees, and unions. It deals with issues in both public law, like the right to organize, and private law, like employment contracts. The goal of labour law is to balance the interests of employers and employees. Labour laws first emerged when employers tried to restrict unions and keep wages low, while workers demanded better conditions. Governments enacted labour laws to intervene in the conflict between employers and workers. Key Indian labour laws regulate wages, working conditions, disputes, bonuses, gratuities, and more. The Apprenticeship Act promotes skills training through contracts between apprentices and employers. The Payment of Wages Act regulates wage payments and prohibits unauthorized deductions.
This document presents a benefit-cost analysis of four strategies to reduce emissions from traditional brick kilns in Ciudad Juárez, Mexico: 1) replacing open-topped kilns with domed kilns designed by NMSU researchers, 2) switching to natural gas, 3) relocating kilns away from residential areas, and 4) enforcing no-burn days during periods of stagnant air. The analysis finds the expected benefits of reducing PM10 emissions for three of the four strategies—NMSU kilns, natural gas, and no-burn days—are significantly higher than the associated costs, suggesting these informal polluters should be a high priority for regulators.
This document summarizes a study on the informal sector in Jamaica. Key findings include:
1. The informal sector represents around 40% of Jamaica's total economic activity and has more than doubled in size over the past decade, contributing significantly to declines in poverty.
2. Informal activities and participants are diverse, ranging from small-scale entrepreneurs to sophisticated businesses. They differ from the formal sector in operating in low-productivity sectors and lacking formal contracts and management practices.
3. Estimating methods produce similar figures of the informal sector representing 39-44% of official GDP in 2001. Electricity consumption data indicates the informal sector grew faster than the formal economy in the 1990s.
New alliance-progress-report-coop-framework-malawiDr Lendy Spires
The document summarizes a cooperation framework between Malawi, G8 members, and the private sector to support food security and nutrition. They commit to aligning investments with Malawi's agriculture and trade plans, pursuing policy reforms, and reviewing progress annually. The goal is to help 1.7 million Malawians emerge from poverty by 2022 and reduce child stunting. Private sector will invest in priority crops and G8 members will support areas like extension services, irrigation, and nutrition.
Wildfire prevention in the Mediterranean is an important issue that requires intensified efforts to deal with increased risks from climate change. The document outlines key causes of wildfires like traditional fire use, rural abandonment, and climate change effects. It recommends enhancing international cooperation on prevention, integrating prevention into national forest policies and climate change strategies, promoting prevention education, establishing sustainable financing, and improving information systems to address new wildfire risks. Regional integration between Europe and Southern Mediterranean countries is needed due to the transboundary nature of wildfires.
The document summarizes a report on the informal retail sector in South Africa, which makes up approximately 10% of retail trade. There are strong linkages between informal and formal sectors, with most informal retailers receiving deliveries and support from suppliers. Informal retailers range from established township general dealers to survivalist hawkers and street vendors. While over 75% of general dealers see their business as a permanent career, only around 35% of hawkers feel the same, showing a continuum from more to less established operations. [/SUMMARY]
The document discusses efforts to address informality in emerging market democracies. It focuses on the work of the Center for the Dissemination of Economic Knowledge (CEDICE) in Venezuela to study and help reduce the country's large informal sector. CEDICE conducted in-depth research on barriers to formalization, such as high costs of doing business. It used this research to develop policy recommendations and facilitate discussions among stakeholders on reforms. CEDICE's analysis and engagement of informal groups and government aimed to lower obstacles for informal enterprises and workers to participate in the formal economy.
Admission of observers: organizations applying for admission as observersDr Lendy Spires
This document provides information about organizations applying for admission as observers to the 20th session of the Conference of the Parties. It lists 67 new applicant non-governmental organizations and 1 new applicant intergovernmental organization. It recommends that 3 of the NGO applicants (CARE Perú, Peru Green Building Council, and PROFONANPE) be admitted only to the conference in Lima, Peru. The COP is invited to grant observer status to all the applicant organizations listed.
This document discusses a study analyzing the effects of tax enforcement on productivity and output in Mexico. The study develops an economic model to quantify the impacts of incomplete tax enforcement. It finds that under complete enforcement, Mexico's labor productivity and output would be 17% higher. Improving enforcement would remove distortions that currently induce misallocation of resources to less productive firms and reduce capital-labor ratios at informal firms.
Expanding insurance coverage to informal sector populations: Experience from ...Dr Lendy Spires
This document discusses Korea's experience expanding health insurance coverage to its informal sector population. It describes how Korea implemented pilot programs in the 1980s to test different contribution collection methods from self-employed households. These pilots formed the basis for Korea's national health insurance program, which has achieved near universal coverage. The program calculates contributions based on estimated income levels. While collection rates are high, estimating incomes of the self-employed remains an ongoing challenge. The program is now mainly financed through contributions, with some government subsidies.
This document provides a compilation of decision text from the Convention on Biological Diversity (CBD) that relates to gender equality from 1996 to 2012. It highlights that the CBD recognizes the vital role women play in conservation and sustainable use of biodiversity. The text shows that over time, CBD decisions have increasingly called for the full participation of women and incorporation of gender considerations. Key provisions promote women's participation in policymaking, implementation, knowledge preservation, and decision-making regarding traditional knowledge and biodiversity conservation.
Statistical definition of the informal sector - International standards and n...Dr Lendy Spires
The informal sector represents an important part of the economy and certainly of the labour market in many countries, especially developing countries, and thus plays a major role in employment creation, production and income generation. In countries with high rates of population growth and/or urbanization, the informal sector tends to absorb most of the growing labour force in the urban areas.
Informal sector employment is a necessary survival strategy in countries that lack social safety nets such as unemployment insurance or where wages, especially in the public sector, and pensions are low. In such situations, indicators such as the unemployment rate and time-related underemployment are not sufficient to describe the labour market situation. In other countries, the process of industrial restructuring in the formal sector is seen as leading to a greater decentralization of production through subcontracting to small enterprises, many of which are in the informal sector.
The informal sector represents a challenge to policy-makers with regard to issues such as: improvement of the working conditions and legal and social protection of the persons employed in the informal sector; increasing the productivity of informal sector activities; training and skills development; organization of informal sector producers and workers; development of appropriate regulatory frameworks; government reforms; urban development. Since many women and children are employed in the informal sector, issues emerge concerning the contribution of women to economic activities and concerning child labour.
It is worth noting that the informal sector was included in the UN Minimum National Social Data Set as a sub-indicator to the employment-to-population ratio. Urban informal sector employment as a percentage of total urban employment was chosen as one of the ILO Key Indicators of the Labour Market. Statistics on the informal sector are needed as a tool for evidence-based policy-making and advocacy, and an operational definition of the informal sector is needed to develop such statistics.
International statistical definition In 1993, the Fifteenth International Conference of Labour Statisticians (15th ICLS) adopted an international statistical definition of the informal sector; the definition was subsequently included in the revised System of National Accounts (SNA 1993).
Measuring the Informal Economy in Developing Countries” Kathmandu, Nepal,Dr Lendy Spires
It is well known that a major part of the workforce in India and other developing countries work in informal sector. Informal sector has become an increasingly popular subject of study, not just in economics, but also in sociology and anthropology. Keith Hart was the first person to introduce the term „Informal Sector‟.
He introduced it while making a presentation on “Informal income opportunities and urban employment in Ghana” in Institute of Development Studies (IDS) in September 1971 at a conference co-organized by Rita Cruise O‟Brien and Richard Jolly on urban employment in Africa months before International Labour Organisation (ILO) employment mission to Kenya came with its report “Employment Incomes and Equality” (jolly, 2006).
Hart distinguished formal and informal (both legitimate and illegitimate) income opportunities on the basis of whether the activity entailed wage or self-employment (Hart, 1973).Therefore the concept of informal sector used by Hart was limited to small self-employed individual workers. Although Hart‟s concept of informal sector had some limitations, the introduction of this concept made it possible to incorporate activities that were previously ignored in theoretical models of development and in national economic accounts (Swaminathan, 1991). The term informal sector came in a broader sense in the academic literature only after the visit of an International Labour Organization (ILO) employment mission to Kenya in 1972.
The ILO then evolved a conceptual framework and guidelines for the collection of statistics on informal sector and presented the same in the Fifteenth International Conference of Labour Statisticians (ICLS) held in February, 1993 in the form of a resolution. The resolution was then endorsed by the United Nations Statistical Commission (UNSC) and made a part of the “System of National Account (SNA) 1993” by the United Nations Economic and Social Council. Though the term „informal sector‟ gained currency after ILO evolved a conceptual framework and guidelines for the collection of statistics on informal sector, there has not been any single definition of informal/unorganised sector in India. Informal sector is a matter of discussion among the academics, policy makers etc. from the beginning as a large chunk of workforce employed in this sector.
Different criteria are used to identify the informal sector but non of them was universally applicable in different empirical situations (papola, 1981).
This document summarizes a paper presented at a conference on measuring the informal economy in developing countries. It discusses definitions of the informal sector and informal workers in India. Some key points:
- A large portion of India's workforce is engaged in informal sector employment. Different organizations in India have used varying definitions.
- The National Commission for Enterprises in the Unorganized Sector proposed harmonized definitions of informal sector and informal worker.
- In 2004-05, 86% of India's workforce (around 394.9 million workers) were estimated to work in the informal sector based on the NCEUS definitions. The proportion was higher in rural areas.
- Between 1999-2000 and 2004-05,
The document discusses the concept of the informal sector and informal employment in India. It notes that N.O.V.I is an organization established to act as a bridge between vulnerable informal sector workers and the government. Its main aim is to ensure proper flow of funds and facilities to this sector. N.O.V.I will provide a unique identification system to accurately target informal workers and will work to coordinate existing government welfare programs and services for these workers. It discusses the methodology, facilities, and role of government that N.O.V.I plans to implement.
A look at the Contingent Workforce Environment in AsiaSameer Srivastava
Shares overview of the current contingent workforce scenario in China, India, Indonesia, Malaysia, Japan, Singapore and South Korea. Has details on Contingent Workforce Regulations and demographic details which include legal, GDP, languages and information on the major industries.
The document discusses disability laws and policies in Hungary. It notes that approximately 5-10% of Hungary's population is considered disabled, with the most common disabilities being physical (44%), visual impairment (14%), and mental disabilities (10%). The document outlines anti-discrimination laws and policies aimed at promoting equal opportunities, independent living, and social inclusion for the disabled. It also discusses employment programs and quotas to help increase disabled employment.
The document discusses the Joint Consultative Machinery (JCM) scheme and attitudes/skills in grievance handling and motivation. The JCM is a platform for constructive dialogue between staff and officials to peacefully resolve disputes. It aims to promote cooperation and efficiency in public services. The JCM operates at the national, departmental, and regional/office levels. Effective grievance handling involves prompt action, careful examination of issues, preventing future grievances through policy decisions based on analysis, and facilitating resolution.
The document summarizes several key labor laws in India, including the Industrial Disputes Act, Trade Unions Act, Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, Employees' Provident Funds and Miscellaneous Provisions Act, and Employees' State Insurance Act. It provides details on the scope and requirements of each law, such as definitions of employees and wages, minimum wage rates, timely payment of wages, bonus eligibility and calculation, provident fund contributions and transfers, and medical benefits for employees.
This document discusses equal opportunities and discrimination in the Lithuanian labor market. It outlines the main laws prohibiting discrimination based on characteristics like race, ethnicity and language. While discrimination is officially rare, complaints are not always effective and few cases are brought to court. Refugees and ethnic minorities face difficulties entering the job market like lack of language skills, negative employer attitudes and non-recognition of qualifications. More research is needed on the frequency of discrimination and racism in employment.
This document provides information on regulatory requirements for starting and growing a business in Bangladesh. It identifies the key institutions involved in business registration, environmental compliance, labor market regulations, and reform efforts. The document summarizes the process for registering a business in Bangladesh, which involves obtaining name clearance, paying fees, submitting documents, and registering for taxes. It also lists the laws governing business activities in areas such as taxation, investment, banking, trade and more. Overall the document serves as a diagnostic of the regulatory landscape for businesses in Bangladesh.
Labour law addresses the relationship between employers, employees, and unions. It deals with issues in both public law, like the right to organize, and private law, like employment contracts. The goal of labour law is to balance the interests of employers and employees. Labour laws first emerged when employers tried to restrict unions and keep wages low, while workers demanded better conditions. Governments enacted labour laws to intervene in the conflict between employers and workers. Key Indian labour laws regulate wages, working conditions, disputes, bonuses, gratuities, and more. The Apprenticeship Act promotes skills training through contracts between apprentices and employers. The Payment of Wages Act regulates wage payments and prohibits unauthorized deductions.
This document presents a benefit-cost analysis of four strategies to reduce emissions from traditional brick kilns in Ciudad Juárez, Mexico: 1) replacing open-topped kilns with domed kilns designed by NMSU researchers, 2) switching to natural gas, 3) relocating kilns away from residential areas, and 4) enforcing no-burn days during periods of stagnant air. The analysis finds the expected benefits of reducing PM10 emissions for three of the four strategies—NMSU kilns, natural gas, and no-burn days—are significantly higher than the associated costs, suggesting these informal polluters should be a high priority for regulators.
This document summarizes a study on the informal sector in Jamaica. Key findings include:
1. The informal sector represents around 40% of Jamaica's total economic activity and has more than doubled in size over the past decade, contributing significantly to declines in poverty.
2. Informal activities and participants are diverse, ranging from small-scale entrepreneurs to sophisticated businesses. They differ from the formal sector in operating in low-productivity sectors and lacking formal contracts and management practices.
3. Estimating methods produce similar figures of the informal sector representing 39-44% of official GDP in 2001. Electricity consumption data indicates the informal sector grew faster than the formal economy in the 1990s.
New alliance-progress-report-coop-framework-malawiDr Lendy Spires
The document summarizes a cooperation framework between Malawi, G8 members, and the private sector to support food security and nutrition. They commit to aligning investments with Malawi's agriculture and trade plans, pursuing policy reforms, and reviewing progress annually. The goal is to help 1.7 million Malawians emerge from poverty by 2022 and reduce child stunting. Private sector will invest in priority crops and G8 members will support areas like extension services, irrigation, and nutrition.
Wildfire prevention in the Mediterranean is an important issue that requires intensified efforts to deal with increased risks from climate change. The document outlines key causes of wildfires like traditional fire use, rural abandonment, and climate change effects. It recommends enhancing international cooperation on prevention, integrating prevention into national forest policies and climate change strategies, promoting prevention education, establishing sustainable financing, and improving information systems to address new wildfire risks. Regional integration between Europe and Southern Mediterranean countries is needed due to the transboundary nature of wildfires.
The document summarizes a report on the informal retail sector in South Africa, which makes up approximately 10% of retail trade. There are strong linkages between informal and formal sectors, with most informal retailers receiving deliveries and support from suppliers. Informal retailers range from established township general dealers to survivalist hawkers and street vendors. While over 75% of general dealers see their business as a permanent career, only around 35% of hawkers feel the same, showing a continuum from more to less established operations. [/SUMMARY]
The document discusses efforts to address informality in emerging market democracies. It focuses on the work of the Center for the Dissemination of Economic Knowledge (CEDICE) in Venezuela to study and help reduce the country's large informal sector. CEDICE conducted in-depth research on barriers to formalization, such as high costs of doing business. It used this research to develop policy recommendations and facilitate discussions among stakeholders on reforms. CEDICE's analysis and engagement of informal groups and government aimed to lower obstacles for informal enterprises and workers to participate in the formal economy.
Admission of observers: organizations applying for admission as observersDr Lendy Spires
This document provides information about organizations applying for admission as observers to the 20th session of the Conference of the Parties. It lists 67 new applicant non-governmental organizations and 1 new applicant intergovernmental organization. It recommends that 3 of the NGO applicants (CARE Perú, Peru Green Building Council, and PROFONANPE) be admitted only to the conference in Lima, Peru. The COP is invited to grant observer status to all the applicant organizations listed.
This document discusses a study analyzing the effects of tax enforcement on productivity and output in Mexico. The study develops an economic model to quantify the impacts of incomplete tax enforcement. It finds that under complete enforcement, Mexico's labor productivity and output would be 17% higher. Improving enforcement would remove distortions that currently induce misallocation of resources to less productive firms and reduce capital-labor ratios at informal firms.
Expanding insurance coverage to informal sector populations: Experience from ...Dr Lendy Spires
This document discusses Korea's experience expanding health insurance coverage to its informal sector population. It describes how Korea implemented pilot programs in the 1980s to test different contribution collection methods from self-employed households. These pilots formed the basis for Korea's national health insurance program, which has achieved near universal coverage. The program calculates contributions based on estimated income levels. While collection rates are high, estimating incomes of the self-employed remains an ongoing challenge. The program is now mainly financed through contributions, with some government subsidies.
This document provides a compilation of decision text from the Convention on Biological Diversity (CBD) that relates to gender equality from 1996 to 2012. It highlights that the CBD recognizes the vital role women play in conservation and sustainable use of biodiversity. The text shows that over time, CBD decisions have increasingly called for the full participation of women and incorporation of gender considerations. Key provisions promote women's participation in policymaking, implementation, knowledge preservation, and decision-making regarding traditional knowledge and biodiversity conservation.
Statistical definition of the informal sector - International standards and n...Dr Lendy Spires
The informal sector represents an important part of the economy and certainly of the labour market in many countries, especially developing countries, and thus plays a major role in employment creation, production and income generation. In countries with high rates of population growth and/or urbanization, the informal sector tends to absorb most of the growing labour force in the urban areas.
Informal sector employment is a necessary survival strategy in countries that lack social safety nets such as unemployment insurance or where wages, especially in the public sector, and pensions are low. In such situations, indicators such as the unemployment rate and time-related underemployment are not sufficient to describe the labour market situation. In other countries, the process of industrial restructuring in the formal sector is seen as leading to a greater decentralization of production through subcontracting to small enterprises, many of which are in the informal sector.
The informal sector represents a challenge to policy-makers with regard to issues such as: improvement of the working conditions and legal and social protection of the persons employed in the informal sector; increasing the productivity of informal sector activities; training and skills development; organization of informal sector producers and workers; development of appropriate regulatory frameworks; government reforms; urban development. Since many women and children are employed in the informal sector, issues emerge concerning the contribution of women to economic activities and concerning child labour.
It is worth noting that the informal sector was included in the UN Minimum National Social Data Set as a sub-indicator to the employment-to-population ratio. Urban informal sector employment as a percentage of total urban employment was chosen as one of the ILO Key Indicators of the Labour Market. Statistics on the informal sector are needed as a tool for evidence-based policy-making and advocacy, and an operational definition of the informal sector is needed to develop such statistics.
International statistical definition In 1993, the Fifteenth International Conference of Labour Statisticians (15th ICLS) adopted an international statistical definition of the informal sector; the definition was subsequently included in the revised System of National Accounts (SNA 1993).
Measuring the Informal Economy in Developing Countries” Kathmandu, Nepal,Dr Lendy Spires
It is well known that a major part of the workforce in India and other developing countries work in informal sector. Informal sector has become an increasingly popular subject of study, not just in economics, but also in sociology and anthropology. Keith Hart was the first person to introduce the term „Informal Sector‟.
He introduced it while making a presentation on “Informal income opportunities and urban employment in Ghana” in Institute of Development Studies (IDS) in September 1971 at a conference co-organized by Rita Cruise O‟Brien and Richard Jolly on urban employment in Africa months before International Labour Organisation (ILO) employment mission to Kenya came with its report “Employment Incomes and Equality” (jolly, 2006).
Hart distinguished formal and informal (both legitimate and illegitimate) income opportunities on the basis of whether the activity entailed wage or self-employment (Hart, 1973).Therefore the concept of informal sector used by Hart was limited to small self-employed individual workers. Although Hart‟s concept of informal sector had some limitations, the introduction of this concept made it possible to incorporate activities that were previously ignored in theoretical models of development and in national economic accounts (Swaminathan, 1991). The term informal sector came in a broader sense in the academic literature only after the visit of an International Labour Organization (ILO) employment mission to Kenya in 1972.
The ILO then evolved a conceptual framework and guidelines for the collection of statistics on informal sector and presented the same in the Fifteenth International Conference of Labour Statisticians (ICLS) held in February, 1993 in the form of a resolution. The resolution was then endorsed by the United Nations Statistical Commission (UNSC) and made a part of the “System of National Account (SNA) 1993” by the United Nations Economic and Social Council. Though the term „informal sector‟ gained currency after ILO evolved a conceptual framework and guidelines for the collection of statistics on informal sector, there has not been any single definition of informal/unorganised sector in India. Informal sector is a matter of discussion among the academics, policy makers etc. from the beginning as a large chunk of workforce employed in this sector.
Different criteria are used to identify the informal sector but non of them was universally applicable in different empirical situations (papola, 1981).
This document summarizes a paper presented at a conference on measuring the informal economy in developing countries. It discusses definitions of the informal sector and informal workers in India. Some key points:
- A large portion of India's workforce is engaged in informal sector employment. Different organizations in India have used varying definitions.
- The National Commission for Enterprises in the Unorganized Sector proposed harmonized definitions of informal sector and informal worker.
- In 2004-05, 86% of India's workforce (around 394.9 million workers) were estimated to work in the informal sector based on the NCEUS definitions. The proportion was higher in rural areas.
- Between 1999-2000 and 2004-05,
The informal sector and non regular employment in the philippinesDr Lendy Spires
This document summarizes a paper presented on the informal sector and non-regular employment in the Philippines. It defines these sectors and provides statistics on their size and composition. It also outlines key government policies and programs that address issues faced by informal and non-regular workers, such as a lack of social protections, access to resources, and representation. The informal sector contributes an estimated 12.5% of GDP and comprises 30% of the labor force, while around 25% of non-agricultural workers are non-regular employees lacking job security.
The document discusses the informal economy in West Africa and its importance for food security. It notes that the informal economy is difficult to define and measure due to its diversity and lack of standard definitions and accounting. However, it plays a major role in providing income, jobs, and services for many households. The document calls for revising concepts and definitions to better capture the full scope and importance of informal economic activities across different sectors. Improving measurements of the informal economy is essential for informing effective food security policies.
Informality, growth, and development in Africa Dr Lendy Spires
This document summarizes a paper about informality, growth, and development in Africa. It discusses how the informal sector makes up most of GDP and employment in sub-Saharan Africa. There is no single agreed-upon definition of informality, and definitions vary based on factors like firm size, registration status, and record keeping. The paper argues that informality is best understood as a continuum, with some enterprises being more formal and others more informal based on combinations of defining criteria. It aims to lay out characteristics of informality in Africa and related development issues.
The document discusses definitions and measurement of employment in the informal sector and informal employment.
It summarizes the 1993 international statistical definition of employment in the informal sector adopted by the 15th ICLS, which defines it based on characteristics of informal sector enterprises. It also summarizes the 2003 definition of informal employment adopted by the 17th ICLS, which complements the earlier definition by focusing on jobs rather than enterprises.
The document explains that both concepts are useful for analysis but measure different aspects of informalization, so statistics on both are needed. It discusses issues around the definitions and provides examples of survey questions to measure employment in the informal sector and informal employment.
This document summarizes an analysis of Namibia's 2008 Labour Force Survey data on informal employment. It defines informal sector employment as work in unincorporated enterprises that are not separate legal entities from the households that own them. The analysis finds that most employed persons in Namibia work informally. It describes characteristics of informal employment such as the sectors, occupations, workplace sizes and types where informal work is concentrated. The working conditions of informal employees, employers, and own-account workers are also examined.
Informal sector labour markets in developing countries 0Dr Lendy Spires
This document discusses characteristics of informal labor markets in developing countries. It presents two opposing views on the causes of informal markets - either as a residual sector absorbing excess labor or a dynamic sector of entrepreneurship. It then examines examples of involuntary informal employment driven by state intervention and labor market segmentation in China, South Africa, and India. Specifically, it discusses how China's hukou system and South Africa's labor regulations have segmented their labor markets. The document also notes evidence that wage differentials can exist between large and small firms independently due to efficiency wage theories, as seen in Zimbabwe. Overall, the document analyzes factors contributing to both voluntary and involuntary informal employment.
This document discusses definitions of informality and the informal sector in sub-Saharan Africa. It notes that the informal sector makes up the majority of GDP and employment in many African economies. There is no single agreed-upon definition, as informality exists on a continuum and means different things in different contexts. Common criteria used to define informal enterprises include firm size, registration status, social security coverage for employees, and sincerity of financial accounts. The document argues that informality is best understood as a combination of these characteristics, rather than defined by any single criterion.
Measuring the informal economy: From employment in the informal sector to in...Dr Lendy Spires
The document discusses definitions and measurement of employment in the informal economy adopted by the International Conference of Labour Statisticians (ICLS). It explains the definitions of employment in the informal sector and informal employment, which were adopted by the 15th and 17th ICLS respectively. The definition of informal sector focuses on characteristics of production units, while informal employment focuses on characteristics of jobs. The document also discusses related issues like borderline jobs, subdivisions of informal jobs, and differences between informal sector/employment and underground economy. It highlights the importance of labour force surveys for collecting data on informal sector employment and informal employment through appropriate survey questions.
Measuring the informal economy from employmeent in the informal sector to inf...Dr Lendy Spires
The document discusses definitions and measurement of employment in the informal economy adopted by the International Conference of Labour Statisticians (ICLS). It explains the definitions of employment in the informal sector and informal employment, which were adopted by the 15th and 17th ICLS respectively. The definition of informal sector focuses on characteristics of production units, while informal employment focuses on characteristics of jobs. The document also discusses related issues like borderline jobs, subdivisions of informal jobs, and differences between informal sector/employment and underground economy. It describes how labour force surveys can provide data on informal sector employment and informal employment through specific survey questions.
Measuring the Informal Economy: From Employment in the Informal Sector to Inf...Dr Lendy Spires
In January 1993, the Fifteenth International Conference of Labour Statisticians (15th ICLS) adopted an international statistical definition of the informal sector, which was subsequently included in the revised international System of National Accounts (SNA 1993). Inclusion in the SNA of the informal sector definition was considered essential as it would make it possible to identify the informal sector separately in the accounts and, hence, to quantify the contribution of the informal sector to the gross domestic product. In order to obtain an internationally agreed definition of the informal sector, which was acceptable to labour statisticians as well as national accountants, the informal sector had to be defined in terms of characteristics of the production units (enterprises) in which the activities take place (enterprise approach), rather than in terms of the characteristics of the persons involved or of their jobs (labour approach).
A criticism sometimes made of the informal sector definition adopted by the 15th ICLS is that persons engaged in very small-scale or casual self-employment activities may not report in statistical surveys that they are self-employed, or employed at all, although their activity falls within the enterprise-based definition. Another criticism is that informal sector statistics may be affected by errors in classifying certain groups of employed persons by status in employment, such as outworkers, subcontractors, free-lancers or other workers whose activity is at the borderline between self-employment and wage employment. Women are more likely than men to be engaged in such activities.
Still another criticism is that an enterprise-based definition of the informal sector is unable to capture all aspects of the increasing so-called ‘informalisation’ of employment, which has led to a rise in various forms of informal (or non-standard, atypical, alternative, irregular, precarious, etc) employment, in parallel to the growth of the informal sector that can be observed in many countries. From the very beginning, it had however been clear that the informal sector definition adopted by the 15th ICLS was not meant to serve this purpose, which goes far beyond the measurement of employment in the informal sector.
The informal economy, innovation and intellectual propertyDr Lendy Spires
This document discusses concepts related to the informal economy, innovation, and intellectual property. It begins by reviewing definitions of the informal economy and presenting statistical data on its economic significance. Next, it applies concepts of innovation to the informal economy context. It then discusses a spectrum of appropriation mechanisms for innovations, ranging from formal intellectual property rights to informal mechanisms. Finally, it reviews existing policy approaches toward innovation in the formal economy and establishes a framework to consider future policy scenarios for applying intellectual property concepts to the informal economy.
This document discusses the informal economy, innovation, and intellectual property. It begins by reviewing definitions of the informal economy and presenting statistical data on its size and economic significance. Estimates suggest informal employment makes up over half of non-agricultural employment in most middle- and low-income countries.
The document then applies concepts of innovation to the informal economy context. It discusses a spectrum of appropriation mechanisms for innovations, ranging from formal intellectual property rights to informal mechanisms.
Finally, the document reviews existing policy approaches toward innovation in the formal economy. It establishes a framework to consider future policy scenarios for applying intellectual property concepts to innovation in the informal economy. The overall aim is to better understand innovation, appropriation, and
Measuring informality a statistical manual on the informal sector and informa...Dr Lendy Spires
This document provides guidelines for measuring and defining informality. It presents the international statistical standards for defining the informal sector and informal employment as established by the International Conference of Labour Statisticians (ICLS). It also provides practical guidance and examples for countries on implementing surveys to measure employment in the informal sector and informal employment according to these standards. The goal is to improve measurement and comparability of statistics on informality across countries.
In India, unorganized sector play major role in our Indiana economic and large amount of population works in this sector. More than 90 percent of the workforce and about 50 percent of the national product are accounted for by the informal economy. This sector also encompasses the treasure of traditional indigenous knowledge.
It caters to the wide ranging economic requirements of the society. The economic contribution of unorganized sector can be discussed in terms of employment in unorganized sector, contribution to GDP and Gross Value Added and supplying various goods and services for the society.
Unlike the organized sector, even this sector has not received the benefits or organization. Many of them are victims of invisibility. The difficulty starts with identifying the unorganized sector. This report is an attempt to identify the role of the unorganized sector in the Indian economy with special reference to economic contribution and employment.
Harnessing the potentials of the informal sector for sustainable developmentDr Lendy Spires
The document discusses the informal sector in Nigeria and its importance for sustainable development. Some key points:
1) The informal sector plays a major role in African economies, providing employment and supporting growth. In Nigeria, it has helped sustain the economy during difficult economic times when the formal sector struggled.
2) The informal sector is made up mostly of small, individual or family-owned businesses with low capitalization. It faces many constraints including lack of access to credit, skills, and government support.
3) Despite challenges, the informal sector has significantly contributed to employment, income generation, and economic activity in Nigeria. It has helped absorb workers laid off from the formal sector and supported the livelihoods of many Niger
Employment and social protection in the informal sector Dr Lendy Spires
In the recent past the ILO has carried out a large amount of research and technical cooperation activities relating to the informal sector and has provided extensive policy advice. The results of this work have greatly influenced the analysis, design and implementation of policies at the country level. There is also widespread international recognition of the value of this work, which over the years has improved understanding of the characteristics and functioning of the sector.
Given the current compelling issues deriving from the increasing proliferation of precarious forms of employment in most countries, the Office felt that the time was ripe to take stock of the additional knowledge and experience and to draw conclusions and recommendations for future policy orientations and programme priorities. For this purpose a thematic evaluation was carried out, providing a synthesis of the ILO’s work in the urban informal sector, covering both regular budget and extra-budgetary activities. The study reviews the accumulated knowledge and experience within the ILO and assesses the implementation of the strategies that have been developed to address specific problem areas.
It also assesses the impact of the application of these strategies and examines the important lessons learnt and potential areas for future work. A list of the ILO documents, reports and publications reviewed is available on request. This paper offers a summary of the thematic evaluation report. The outcome of its discussion by the Committee will provide guidance in further defining various work items at the start of the Programme and Budget for 2000-01.
Following the renewed emphasis placed by the Director-General on the quantity and quality of jobs, as reflected in the concept of decent work, the results of the evaluation have already proven useful for the preparation of programme proposals by several technical units. The informal sector is in fact a focus of attention in the Programme and Budget for 2000-01, which includes a separate operational objective to guide ILO future action. The strategy outlined in the programme and budget states that – … the inclusion of informal enterprises in national development programmes will be effectively promoted.
This will be based on interventions in a range of fields, including … establishing and strengthening associations of informal sector workers, which provide an effective vehicle for advocacy, social protection and community initiatives. Policy advice and support will help to identify and remove legal, fiscal and administrative barriers preventing the inclusion of informal sector operators in the modern economy.
Employment and social protection in the informal sector
Paper hussmanns
1. Measurement of Informal Employment: Recent International Standards
Ralf HUSSMANNS
Senior Statistician, Bureau of Statistics, International Labour Office, Switzerland
Abstract. The paper summarises and explains the international statistical definitions of employment in the informal sector and of informal employment as adopted by the 15th and 17th ICLS in 1993 and 2003. It also deals with a number of related issues, including the links of the concepts of informal sector and informal employment with the concept of the non-observed economy.
1. Introduction
In January 1993, the Fifteenth International Conference of Labour Statisticians (15th ICLS) adopted an international statistical definition of the informal sector, which was subsequently included in the revised international System of National Accounts [1]. Inclusion in the SNA of the informal sector definition was considered essential as it would make it possible to identify the informal sector separately in the accounts and, hence, to quantify the contribution of the informal sector to the gross domestic product. In order to obtain an internationally agreed definition of the informal sector, which was acceptable to labour statisticians as well as national accountants, the informal sector had to be defined in terms of characteristics of the production units (enterprises) in which the activities take place (enterprise approach), rather than in terms of the characteristics of the persons involved or of their jobs (labour approach).
A criticism sometimes made of the informal sector definition adopted by the 15th ICLS is that persons engaged in very small-scale or casual self-employment activities may not report in statistical surveys that they are self-employed, or employed at all, although their activity falls within the enterprise-based definition. Another criticism is that informal sector statistics may be affected by errors in classifying certain groups of employed persons by status in employment, such as outworkers, subcontractors, free-lancers or other workers whose activity is at the borderline between self-employment and wage employment. Women are more likely than men to be engaged in such activities. Still another criticism is that an enterprise-based definition of the informal sector is unable to capture all aspects of the increasing so-called ‘informalisation’ of employment, which has led to a rise in various forms of informal (or non-standard, atypical, alternative, irregular, precarious, etc) employment, in parallel to the growth of the informal sector that can be observed in many countries. From the very beginning, it had however been clear that the informal sector definition adopted by the 15th ICLS was not meant to serve this purpose, which goes far beyond the measurement of employment in the informal sector.
For the above-mentioned reasons, the Expert Group on Informal Sector Statistics (Delhi Group) joined statistics users in concluding that “the definition and measurement of employment in the informal sector need(ed) to be complemented with a definition and measurement of informal employment” [2].
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‘Employment in the informal sector’ and ‘informal employment’ are concepts, which refer to different aspects of the ‘informalisation’ of employment and to different targets for policy- making. One of the two concepts cannot replace the other. They are both useful for analytical purposes and, hence, complement each other. However, the two concepts need to be defined and measured in a coherent and consistent manner, so that one can be clearly distinguished from the other. Statistics users and others often tend to confuse the two concepts because they are unaware of the different observation units involved: enterprises on the one had, and jobs on the other.
During its 90th Session (2002), the International Labour Conference (ILC) engaged in an extensive discussion on ‘Decent work and the informal economy’, which emphasised repeatedly the need for more and better statistics on the informal economy and requested the ILO to assist member States in the collection, analysis and dissemination of consistent, disaggregated statistics on the size, composition and contribution of the informal economy [3].
However, in order to be able to collect statistics on the informal economy, one needs to have a definition of the informal economy. The ILC used the term ‘informal economy’ as referring to “all economic activities by workers and economic units that are – in law or in practice – not covered or insufficiently covered by formal arrangements” [3]. The ILO report on ‘Decent work and the Informal Economy’ [4], which had been prepared as a basis for the discussion by the ILC, defined employment in the informal economy as comprising two components: (i) employment in the informal sector as defined by the 15th ICLS, and (ii) other forms of informal employment (i.e. informal employment outside the informal sector).
As part of the report, the ILO developed a conceptual framework for employment in the informal economy. The framework lent itself to statistical measurement as it built upon internationally agreed statistical definitions, which were used because of their consistency and coherence. It enables measures of employment in the informal sector to be complemented with broader measures of informal employment [5, 6]. At its fifth meeting, the Delhi Group endorsed the framework and recommended it to countries for testing [2]. Subsequently, several countries (Brazil, Georgia, India, Mexico and the Republic of Moldova) tested the framework successfully.
The conceptual framework developed by the ILO was submitted to the 17th ICLS (November- December 2003) for discussion. The 17th ICLS examined the framework, made some minor amendments to it, and adopted guidelines endorsing it as an international statistical standard [7]. These guidelines complement the 15th ICLS Resolution concerning statistics of employment in the informal sector. The work by the Delhi Group and its members was essential to the development and adoption of the guidelines.
The 17th ICLS unanimously agreed that international guidelines were useful in assisting countries in the development of national definitions of informal employment, and in enhancing the international comparability of the resulting statistics to the extent possible. It also realized that such guidelines were needed in support of the request, which had been made by the ILC in 2002, that the ILO should assist countries in the collection, analysis and dissemination of statistics on the informal economy.
The concept of informal employment is considered to be relevant not only for developing and transition countries, but also for developed countries, for many of which the concept of the
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informal sector is of limited relevance. The 17th ICLS acknowledged, however, that the relevance and meaning of informal employment varied among countries, and that therefore a decision to develop statistics on it would depend on national circumstances and priorities.
During discussions on terminology, some considered the term ‘informal employment’ as too positive and thus potentially misleading for policy purposes. Others feared that statistics users might have difficulties to understand the difference between ‘informal employment’ and ‘employment in the informal sector’ and confuse the two terms. Nevertheless, the term ‘informal employment’ was retained by the 17th ICLS because of its broadness, and because there was no agreement regarding the use of an alternative term, such as ‘unprotected employment’.
2. International statistical definition of employment in the informal sector
The 15th ICLS [8] defined employment in the informal sector as comprising all jobs in informal sector enterprises, or all persons who, during a given reference period, were employed in at least one informal sector enterprise, irrespective of their status in employment and whether it was their main or a secondary job.
Informal sector enterprises were defined by the 15th ICLS on the basis of the following criteria:
• They are private unincorporated enterprises (excluding quasi-corporations)1, i.e. enterprises owned by individuals or households that are not constituted as separate legal entities independently of their owners, and for which no complete accounts are available that would permit a financial separation of the production activities of the enterprise from the other activities of its owner(s). Private unincorporated enterprises include unincorporated enterprises owned and operated by individual household members or by several members of the same household, as well as unincorporated partnerships and co- operatives formed by members of different households, if they lack complete sets of accounts.
• All or at least some of the goods or services produced are meant for sale or barter, with the possible inclusion in the informal sector of households which produce domestic or personal services in employing paid domestic employees.
• Their size in terms of employment is below a certain threshold to be determined according to national circumstances2, and/or they are not registered under specific forms of national legislation (such as factories’ or commercial acts, tax or social security laws, professional groups’ regulatory acts, or similar acts, laws or regulations established by national legislative bodies as distinct from local regulations for issuing trade licenses or business permits), and/or their employees (if any) are not registered.
1 In the SNA 1993, such enterprises are called ‘household unincorporated enterprises’ or ‘household enterprises’ because they form part of the SNA institutional sector ‘households’. Since readers, who are not familiar with the SNA framework, often misinterpret these terms, the term ‘private unincorporated enterprises’ is used in this paper.
2 During its third meeting, the Delhi Group recommended that for international reporting the size criterion should be defined as less than five employees [9].
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• They are engaged in non-agricultural activities, including secondary non-agricultural activities of enterprises in the agricultural sector3.
The meaning of the term ‘sector’ follows the SNA 1993. For national accounting purposes, a sector (institutional sector) is different from a branch of economic activity (industry). It simply groups together similar kinds of production units, which in terms of their principal functions, behaviour and objectives have certain characteristics in common. The result is not necessarily a homogeneous set of production units. For the purposes of analysis and policy- making, it may thus be useful to divide a sector into more homogeneous sub-sectors. Informal sector enterprises as defined by the 15th ICLS are a sub-sector of the SNA institutional sector ‘households’.
The term ‘enterprise’ is used here in a broad sense, referring to any unit engaged in the production of goods or services for sale or barter. It covers not only production units, which employ hired labour, but also production units that are owned and operated by single individuals working on own account as self-employed persons, either alone or with the help of unpaid family members. The activities may be undertaken inside or outside the enterprise owner’s home, and they may be carried out in identifiable premises, unidentifiable premises or without fixed location. Accordingly, self-employed street vendors, taxi drivers, home- based workers, etc. are all considered enterprises.
3. International statistical definition of informal employment
The conceptual framework endorsed by the 17th ICLS relates the enterprise-based concept of employment in the informal sector in a coherent and consistent manner with a broader, job- based concept of informal employment.
A person can simultaneously have two or more formal and/or informal jobs. Due to the existence of such multiple jobholding, jobs rather than employed persons were taken as the observation units for employment. Employed persons hold jobs that can be described by various job-related characteristics, and these jobs are undertaken in production units (enterprises) that can be described by various enterprise-related characteristics.
Thus, using a building-block approach the framework disaggregates total employment according to two dimensions: type of production unit and type of job (see the matrix annexed to the paper). Type of production unit (rows of the matrix) is defined in terms of legal organisation and other enterprise-related characteristics, while type of job (columns of the matrix) is defined in terms of status in employment and other job-related characteristics.
Production units are classified into three groups: formal sector enterprises, informal sector enterprises, and households. Formal sector enterprises comprise corporations (including quasi-corporate enterprises), non-profit institutions, unincorporated enterprises owned by government units, and those private unincorporated enterprises producing goods or services for sale or barter which are not part of the informal sector. The definition of informal sector
3 The 15th ICLS recognised that, from a conceptual point of view, there was nothing against the inclusion, within the scope of the informal sector, of private unincorporated enterprises engaged in agricultural and related activities, if they met the criteria of the informal sector definition. The recommendation to exclude agricultural and related activities from the scope of informal sector surveys, and to measure them separately, was however made for practical data collection reasons.
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enterprises has already been given in Section 2 above. Households as production units are defined here as including households producing goods exclusively for their own final use (e.g. subsistence farming, do-it-yourself construction of own dwellings), as well as households employing paid domestic workers (maids, laundresses, gardeners, watchmen, drivers, etc.)4. Households producing unpaid domestic or personal services (e.g., housework, caring for family members) for their own final consumption are excluded, as such activities fall presently outside the SNA production boundary and are not considered employment.
Jobs are distinguished according to status-in-employment categories and according to their formal or informal nature. For status in employment, the following five ICSE-93 groups are used: own-account workers; employers; contributing family workers; employees; and members of producers’ cooperatives. The breakdown by status in employment was needed for definitional purposes; however, it was also considered useful for analytical and policy- making purposes.
There are three different types of cells in the matrix shown in the Annex. Cells shaded in dark grey refer to jobs, which, by definition, do not exist in the type of production unit in question. For example, there cannot be contributing family workers in household non-market production units. Cells shaded in light grey refer to formal jobs. Examples are own-account workers and employers owning formal sector enterprises, employees holding formal jobs in formal sector enterprises, or members of formally established producers’ cooperatives. The remaining, un-shaded cells represent the various types of informal jobs.
The 17th ICLS defined informal employment as the total number of informal jobs, whether carried out in formal sector enterprises, informal sector enterprises, or households, during a given reference period (see Annex). It comprises:
• Own-account workers and employers employed in their own informal sector enterprises (Cells 3 and 4). The employment situation of own-account workers and employers can hardly be separated from the type of enterprise, which they own. The informal nature of their jobs follows thus directly from the characteristics of the enterprise.
• Contributing family workers, irrespective of whether they work in formal or informal sector enterprises (Cells 1 and 5). The informal nature of their jobs is due to the fact that contributing family workers usually do not have explicit, written contracts of employment, and that usually their employment is not subject to labour legislation, social security regulations, collective agreements, etc.5.
• Employees holding informal jobs, whether employed by formal sector enterprises, informal sector enterprises, or as paid domestic workers by households (Cells 2, 6 and 10)6. According to the guidelines endorsed by the 17th ICLS, employees are considered
4 The 15th ICLS definition of the informal sector excludes households producing goods exclusively for their own final use, but provides an option to include households employing paid domestic workers. The framework presented in this paper and adopted by the 17th ICLS does not use this option and, hence, excludes households employing paid domestic workers from the informal sector. The exclusion is in line with a recommendation made by the Delhi Group during its third meeting [9].
5 Family workers with a contract of employment and/or wage would be considered employees.
6 Cell 7 refers to employees holding formal jobs in informal sector enterprises. Such cases, which are included in employment in the informal sector but excluded from informal employment, may occur when enterprises are defined as informal in using size as the only criterion, or where there is no administrative link between the registration of employees and the registration of their employers. However, the number of such employees is
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to have informal jobs if their employment relationship is, in law or in practice, not subject to national labour legislation, income taxation, social protection or entitlement to certain employment benefits (advance notice of dismissal, severance pay, paid annual or sick leave, etc.) for reasons such as: non-declaration of the jobs or the employees; casual jobs or jobs of a limited short duration; jobs with hours of work or wages below a specified threshold (e.g. for social security contributions); employment by unincorporated enterprises or by persons in households; jobs where the employee’s place of work is outside the premises of the employer’s enterprise (e.g. outworkers without employment contract); or jobs, for which labour regulations are not applied, not enforced, or not complied with for any other reason7.
• Members of informal producers’ cooperatives (Cell 8). The informal nature of their jobs follows directly from the characteristics of the cooperative of which they are member8.
• Own-account workers engaged in the production of goods exclusively for own final use by their household (such as subsistence farming or do-it-yourself construction of own dwellings), if considered employed according to the 13th ICLS definition of employment9 (Cell 9).
The major new element is the above definition of informal jobs of employees. However, given the large diversity of informal employment situations found in different countries, the 17th ICLS had to leave the operational criteria for defining informal jobs of employees for determination by countries in accordance with national circumstances and data availability. The impact on the international comparability of the resulting statistics was recognized by the 17th ICLS.
An important definitional issue is the possible discrepancy between the formality of employment situations and their reality. Sometimes employees, although in theory protected by labour legislation, covered by social security, entitled to employment benefits, etc., are in practice not in a position to claim their rights because mechanisms to enforce the existing regulations are lacking or deficient. Or the regulations are not applied when the employees agree to waive their rights, because they prefer to trade in higher take-home pay for legal and social protection. For these reasons, the 17th ICLS definition of informal jobs of employees covers not only employment situations, which are de jure informal, but also employment situations, which are de facto informal (“in law or in practice”).
likely to be small in most countries. Where the number is significant, it might be useful to define the informal sector in such a way that enterprises employing formal employees are excluded. Such a definition has been proposed, for example, for Argentina [10] and is in line with the 15th ICLS resolution, which includes the non- registration of the employees of the enterprise among the criteria for defining the informal sector [8].
7 The definition corresponds to the definition of unregistered employees as specified in paragraph 9 (6) of the informal sector resolution adopted by the 15th ICLS. It encompasses the ICSE-93 definitions of non-regular employees, workers in precarious employment (casual workers, short-term workers, seasonal workers, etc.) and contractors.
8 Producers’ cooperatives, which are formally established as legal entities, are incorporated enterprises and, hence, part of the formal sector. Members of such formally established producers’ cooperatives are considered to have formal jobs. Producers’ cooperatives, which are not formally established as legal entities, are treated as private unincorporated enterprises owned by members of several households. They are part of the informal sector if they also meet the other criteria of the definition.
9 The definition specifies that persons engaged in household production for own final use should be considered employed if their production represents an important contribution to the total consumption of the household.
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Employment in the informal sector encompasses the sum of Cells 3 to 8. Informal employment encompasses the sum of Cells 1 to 6 and 8 to 10. The sum of Cells 1, 2, 9 and 10 is called informal employment outside the informal sector.
The 17th ICLS did not endorse the term ‘employment in the informal economy’, which had been used by the ILO to refer to the sum of employment in the informal sector and informal employment outside the informal sector (Cells 1 to 10). The 17th ICLS agreed that, for statistical purposes, it would be better to keep the concepts of informal sector and of informal employment separate. The informal sector concept, as defined by the 15th ICLS, needed to be retained because it had become part of the SNA 1993, and because a large number of countries, as documented by the ILO [11], were collecting statistics based on it.
4. Related issues
4.1 Jobs at the borderline of status-in-employment categories
It is widely recognized that certain types of jobs are difficult to classify by status in employment because they are at the borderline of two or more of the ICSE-93 groups, especially between own-account workers and employees. An example is outworkers (home- workers). The framework presented in this paper and adopted by the 17th ICLS makes it possible to capture all outworkers in informal employment, irrespective of their classification by status in employment. Outworkers would be included in Cells 3 or 4, if they are deemed to constitute enterprises of their own as self-employed persons, and if these enterprises meet the criteria of the informal sector definition. Persons working for such informal outworking enterprises as contributing family workers would be included in Cell 5, and persons working for them as employees in Cells 6 or 7. Outworkers working as employees for formal sector enterprises would be included in Cell 2, if they have informal jobs, and in the light grey cell next to Cell 2, if they have formal jobs.
Thus, problems in assigning jobs to status-in-employment categories affect data on informal employment based on the labour approach to a lesser extent than they affect data on employment in the informal sector based on the enterprise approach. They would lead to classification errors rather than coverage errors. However, further work is needed to develop methodologies, which would help to reduce such classification errors.
4.2 Further sub-divisions of informal jobs
As part of its guidelines, the 17th ICLS mentions that, for purposes of analysis and policy- making, it may be useful to disaggregate the different types of informal jobs, especially those held by employees. Such a typology and definitions should be developed as part of further work on classifications by status in employment at the international and national levels. A strategy for developing a typology of atypical forms of employment, based on the International Classification of Status in Employment (ICSE-93), has been outlined in [12].
4.3 Statistics on informal employment in the absence of data on informal sector employment
Some countries may wish to develop statistics on informal employment, although they do not have statistics on employment in the informal sector. Other countries may wish to develop
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statistics on informal employment, but find that a classification of employment by type of production unit is not much relevant to them. Unless such countries want to limit the measurement of informal employment to employee jobs, they need to specify appropriate definitions of informal jobs of own-account workers, employers and members of producers’ cooperatives, which do not explicitly use the informal sector concept.
4.4 Informal jobs in agriculture
In respect of the statistical treatment of persons engaged in agricultural activities a similar issue arises for countries, which, in line with paragraph 16 of the 15th ICLS resolution, exclude agriculture from the scope of their informal sector statistics. In order to be able to classify all jobs (including agricultural jobs) as formal or informal, these countries will have to develop suitable definitions of informal jobs in agriculture other than those held by persons engaged in subsistence farming (Cell 9). This applies, in particular, to jobs held in agriculture by own-account workers, employers and members of producers’ cooperatives. Regarding the definition of informal employee jobs in agriculture, it is most likely that the same criteria can be used as for the definition of informal employee jobs in other activities10.
4.5 Informal sector/employment vs. underground/illegal production
The 17th ICLS requested the links between the concepts of informal employment and non- observed economy to be indicated. In the preamble to its guidelines, it therefore mentioned that an international conceptual framework for measurement of the non-observed economy already existed. The framework was developed as part of a handbook for measurement of the non-observed economy, which was published in 2002 by the OECD, IMF, ILO and CIS STAT (Interstate Statistical Committee of the Commonwealth of Independent States) as a supplement to the SNA 1993 [14]. The handbook puts the informal sector in a broader context of non-observed economy and relates it to three other concepts, with which it is often confused: underground production; illegal production; and household production for own final use11.
The SNA 1993 defines illegal production as production activities which are forbidden by law, or which become illegal when carried out by unauthorised producers [1]. Examples are drug trafficking or abortions practiced by unauthorised persons. Thus, illegal production can be considered to represent a contravention of the criminal code.
Underground production is defined in the SNA 1993 as production activities, which are legal when performed in compliance with regulations, but which are deliberately concealed from public authorities. An example is the sale of legal goods or services without tax declaration. Thus, underground production can be considered to represent a contravention of the civil code.
10 Negrete (2002) already discussed these issues in his paper for the sixth meeting of the Delhi Group and made some suggestions for Mexico [13].
11 The need to distinguish the concept of the informal sector from the concept of the hidden or underground economy had already been recognized by the 15th ICLS in paragraph 5 (3) of its Resolution concerning statistics of employment in the informal sector.
9. 9
The SNA 1993 acknowledges that, in practice, it may not always be easy to draw a clear borderline between underground production and illegal production. For conceptual purposes, one can however use the above-mentioned definitions to distinguish three types of production activities: (i) activities, which are legal and not underground; (ii) activities, which are legal, but underground; and (iii) activities, which are illegal.
As indicated in Diagram 1 below, any type of production units (formal sector enterprises; informal sector enterprises; households) can be engaged in any type of activities (legal, not underground; legal, underground; illegal). Nevertheless, it is widely known that in developing and transition countries most informal sector activities are neither underground nor illegal, as they represent simply a survival strategy for the persons involved in them and for their households. This greatly facilitates the conduct of surveys on the informal sector in these countries.
Diagram 1
Activities
Legal
Production units
Not underground
Underground
Illegal
Formal sector enterprises
Informal sector enterprises (a)
Households (b)
(a) As defined by the 15th ICLS (excluding households employing paid domestic workers).
(b) Households producing goods exclusively for their own final use and households employing paid domestic workers.
The activities carried out by production units are undertaken by persons employed in formal jobs or in informal jobs. This conceptual link is shown in Diagram 2 below, which combines Diagram 1 with a simplified version of the matrix adopted by the 17th ICLS as part of its guidelines. The result is a three-dimensional cube composed of 18 smaller cubes (or 45 smaller cubes, if the full version of the matrix is used). Each of the smaller cubes stands for a specific combination of type of production unit, type of activity, and type of job. Work is currently being undertaken by the ILO to define the smaller cubes, and to give examples for the employment situations represented by each of them. It is hoped that the results of this work will help to sort out the widespread confusion concerning the use of the terms ‘informal sector’, ‘informal employment’ and ‘underground or illegal production’, which currently still exists.
10. 10
Diagram 2 ActivitiesLegalIllegalNot undergroundUndergroundProductionunitsFormalsectorenterprisesInformalsectorenterprisesHouseholds
5. References
[1] Inter-Secretariat Working Group on National Accounts (1993), System of National Accounts 1993, Brussels/Luxembourg, New York, Paris, Washington, D.C.
[2] Central Statistical Organisation/India (2001), Expert Group on Informal Sector Statistics (Delhi Group), Report of the Fifth Meeting (New Delhi, 19-21 September 2001), New Delhi.
[3] International Labour Office (2002), Effect to be given to resolutions adopted by the International Labour Conference at its 90th Session (2002), (b) Resolution concerning decent work and the informal economy, Governing Body, 285th Session, Seventh item on the agenda, Geneva (doc. GB.285/7/2).
[4] International Labour Office (2002), Decent Work and the Informal Economy, Report of the Director- General, International Labour Conference, 90th Session, Report VI, Geneva.
[5] Hussmanns, R. (2001), Informal sector and informal employment: elements of a conceptual framework, Paper presented at the Fifth Meeting of the Expert Group on Informal Sector Statistics (Delhi Group), New Delhi, 19-21 September 2001.
[6] Hussmanns, R. (2002), A labour force survey module on informal employment (including employment in the informal sector) as a tool for enhancing the international comparability of data, Paper presented at the Sixth Meeting of the Expert Group on Informal Sector Statistics (Delhi Group), Rio de Janeiro, 16-18 September 2002.
[7] International Labour Organization (2003), Guidelines concerning a statistical definition of informal employment, in: Seventeenth International Conference of Labour Statisticians (Geneva, 24 November - 3 December 2003), Report of the Conference, Doc. ICLS/17/2003/R, Geneva.
[8] International Labour Office (2000), Resolution concerning statistics of employment in the informal sector, adopted by the Fifteenth International Conference of Labour Statisticians (January 1993), in: Current International Recommendations on Labour Statistics, 2000 Edition, Geneva.
[9] Central Statistical Organisation/India (1999), Expert Group on Informal Sector Statistics (Delhi Group), Report of the Third Meeting (New Delhi, 17-19 May 1999), New Delhi.
[10] Pok, C. (1992), Precariedad laboral: Personificaciones sociales en la frontera de la estructura del empleo, Paper prepared for the Seminario Interamericano sobre Medición del Sector Informal (Lima, 26-28 August 1992), Instituto Nacional de Estadística y Censos (Argentina), Buenos Aires.
[11] International Labour Office (2002), ILO Compendium of official statistics on employment in the informal sector, STAT Working papers, No. 2002-1, Geneva.
11. 11
[12] Mata Greenwood, A.; Hoffmann, E. (2002), Developing a conceptual framework for a typology of atypical forms of employment: Outline of a strategy, Invited paper prepared for the Joint UNECE-Eurostat-ILO Seminar on Measurement of the Quality of Employment, Geneva, 27-29 May 2002.
[13] Negrete, R. (2002), Case studies on the operation of the concept of “Informal Employment” as distinct from “Informal Sector Employment”, Paper presented at the Sixth Meeting of the Expert Group on Informal Sector Statistics (Delhi Group), Rio de Janeiro, 16-18 September 2002.
[14] OECD; IMF; ILO; CIS STAT (2002), Measuring the Non-Observed Economy – A Handbook, Paris.
ANNEX
Conceptual Framework: Informal Employment (17th ICLS)
Jobs by status in employment
Own-account workers
Employers
Contributing family workers
Employees
Members of producers’ cooperatives
Production units by type
Informal
Formal
Informal
Formal
Informal
Informal
Formal
Informal
Formal
Formal sector enterprises
1
2
Informal sector enterprises(a)
3
4
5
6
7
8
Households(b)
9
10
(a) As defined by the Fifteenth International Conference of Labour Statisticians (excluding households employing paid domestic workers).
(b) Households producing goods exclusively for their own final use and households employing paid domestic workers.
Note: Cells shaded in dark grey refer to jobs, which, by definition, do not exist in the type of production unit in question. Cells shaded in light grey refer to formal jobs. Un-shaded cells represent the various types of informal jobs.
Informal employment: Cells 1to 6 and 8 to 10.
Employment in the informal sector: Cells 3 to 8.
Informal employment outside the informal sector: Cells 1,2, 9 and 10.