Workers and Labour Market Outcomes of Informal Jobs in Formal Establishments. A Job-based Informality Index for Nine Sub-Saharan African Countries
Abstract
How can an informal job in formal establishments be defined? Who has an informal job? What are the labour market outcomes? This article uses data of comparable face-to-face surveys in nine countries: Benin, Ghana, Guinea, Kenya, Madagascar, Niger, Rwanda, Senegal and Togo. An index for job-based informality is developed, based on employment status and contribution and entitlement to social security. Young and low-educated workers are more likely to hold informal jobs; even more so are workers in small enterprises, in trade, transport and hospitality, and in unskilled occupations, while workers in skilled occupations and with high education are less likely to hold informal jobs. No evidence is found regarding gendered effects. The more informal, the poorer the labour market outcomes: wages are lower, while the chances are higher of being paid below the minimum wage, working more than 48 hours and not being covered by a collective agreement.
Keywords
job-based informality social security minimum wages wages working hours collective bargaining coverageAbstract
Comment définir un emploi informel dans une entreprise formelle? Qui sont les personnes qui ont un emploi informel et quelles sont leurs conditions de travail? Cet article utilise les données comparables issues de sondages en personne dans neuf pays: Bénin, Ghana, Guinée, Kenya, Madagascar, Niger, Rwanda, Sénégal et Togo. Un index mesurant la précarité de l’emploi est développé et prend en compte le statut de l’employé, ainsi que les prélèvements sociaux et la couverture sociale dont l’employé bénéficie. Les travailleurs jeunes et ayant fait peu d’études sont plus susceptibles de se retrouver dans un emploi informel; les travailleurs non-qualifiés des petites entreprises, dans les métiers du commerce, des transports et de l’hospitalité le sont plus encore, alors que les travailleurs qualifiés et ayant fait des études supérieures sont moins susceptibles de se retrouver dans un emploi informel. Nous n’avons trouvé aucune preuve des effets du genre sur la susceptibilité. Plus l’emploi est informel, plus les conditions de travail sont déplorables pour l’employé: les salaires sont plus bas et la probabilité d’être rémunéré en dessous du minimum légal, de travailler plus de 48 heures hebdomadaires et de ne pas être couvert par une convention collective est plus élevée.
Notes
Acknowledgements
This article uses data collected on behalf of the Decent Wage Africa – Francophone project, funded by the Dutch Christian Confederation of Trade Unions (CNV), and the Enabling Social Dialogue project in Ghana, Kenya and Tanzania, funded by Development Aid from the Dutch Trade Union Federation (FNV) and the Dutch Employers’ Cooperation Programme (DECP), both supervised by the WageIndicator Foundation. The authors thank participants of ILO’s 3rd Regulating Decent Work conference (3–5 July 2013, Geneva), the 8th IZA/World Bank Conference on Employment and Development (22–23 August 2013, Bonn) and the WageIndicator–Webdatanet workshop (27 August 2013, Amsterdam) for comments on earlier versions, as well as three anonymous referees for their valuable comments. Special thanks are due to Godius Kahyarara, Ngeh Ernest Tingum, Paulien Osse and Brian Fabo.
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