Informality in a micro economy: Measurement,composition and consequences

This article measures the extent of – and unrecorded income generated by – informal employment in a micro economy characterized by poor governance. Household survey and census data are used to estimate the number of informal workers in Northern Cyprus and analyse the characteristics of informal employment, for the period 2004–11. Informal workers are mostly comprised of citizens with no social security registration, illegally employed immigrants or second‐job holders who have not registered their second jobs. In terms of value added, the estimated size of the informal economy is 9.1 per cent and 12.2 per cent of GNP in 2006 and 2011, respectively.     

Informal employment: Two contested policy issues

This article addresses two contested issues of crucial importance to policy, namely: formal labour regulations as a cause of informal employment, and so‐called “voluntary” informal employment. The authors provide theoretical overviews on both issues and an extensive survey of empirical studies on the effects of formal labour regulations on informal employment. The article closes with observations on the relevance of the ILO's four decent work objectives for informal employment and economic development, with particular emphasis on the significance of – and potential for – organizing workers in the informal economy.     

Earning Their Keep and Keeping What They Earn: A Critique of Organizing Strategies for South Asian Women in the Informal Sector

It is now widely understood that the needs of women workers in the informal sector are not met by the conservative practices of labour organizations and trade unions. While the contribution of women to the economies of developing countries is critical, women rarely find employment in the regulated unionized sectors of these countries, and are found instead in overwhelming numbers in the sector that is variously termed ‘unorganized’, ‘unprotected’, ‘unregistered’ or ‘informal.’ This article addresses the situation of women in the informal economy in South Asia. The author explores the major challenges and opportunities facing women in their efforts to organize and mobilize for change. She also provides a critical analysis of the different types of interventions adopted by the state and civil society organizations in South Asia to empower women in the informal sector. The author concludes with an attempt to identify the mix of interventions and strategies most needed for different social, political and economic circumstances.     

Pressures towards and against formalization: Regulation and informal employment in Mozambique

The informal economy accounts for the bulk of employment in many emerging economies. Regulation theory suggests that all economic activity is characterized by a complex combination of formal and informal regulation. Looking at the case of Mozambique, this article explores the pressures towards and against formalization, and the forms regulation can take, drawing on qualitative research based on in‐depth elite interviews and observation. The findings highlight how the State's role in promoting formalization of the informal economy is ambivalent; its approach incorporates both “progressive” elements, which focus on the modernization of regulations and institutions, and “conservative” elements, which inhibit this process of change.     

Labour market turnover in Latin America: How intensive is it and to what extent does it differ across countries?

The study of labour market turnover is particularly significant in Latin America, which is characterized by marked economic cycles and limited social protection coverage. This article estimates the intensity of transitions from employment in six countries in Latin America in the new millennium and decomposes the differences observed, furthermore evaluating the employment destinations of workers making such transitions. The countries under analysis show very different turnover rates, which are mostly explained by a dissimilar incidence of informal and temporary employment. In all cases, a large share of job exits imply transitions to precarious jobs or unemployment.     

Determinants of informal employment among working mothers in Mexico

Whether women's informal employment is an involuntary marginal condition or a preferred alternative to formal employment has generated intense debate in academic and policy circles, particularly in view of women's disproportionate representation in the informal economy. We analyzed detailed interviews with 136 working mothers in Mexico to gain a better understanding of the factors leading to informal employment, as well as the impact of this work on these women and their families. Our results show that informal employment was not a choice for many women who entered the informal labor market due to human capital constraints and family responsibilities. Additionally, women commonly faced challenges in meeting the needs of both their employers and their families and earning adequate income. We suggest policy options to address the factors constraining women's employment opportunities and improve the situation of those women already working in the informal economy.     

Informality and Contributory and Non‐Contributory Programmes. Recent Reforms of the Social‐Protection System in Uruguay

Several countries in Latin America are expanding their social‐protection systems. There is an on‐going debate about the trade‐offs implied by these expansions, and by the resulting interactions between contributory and non‐contributory programmes with informality in the labour market. This article analyses the potential incentive effects for formal and informal employment from a set of social‐protection reforms implemented in Uruguay in the 1990s and 2000s. It presents empirical evidence of the expansion of health insurance to formal workers' dependants, and finds that this reform significantly increased formal employment. Finally, it discusses possible alternatives to extend social‐protection systems while maintaining incentives for formal work in Latin America's labour markets.     

Volunteering and the gender division of labour: A Franco-British comparison

Cross-national analyses of the gender division of labour usually focus on employment and domestic labour. This paper argues that formal and informal voluntary work should be included in such analyses. Using available secondary sources, the paper compares the gender division of voluntary work in Britain and France – two countries with well-documented differences and similarities concerning employment and domestic labour. The paper reveals that French women, with a higher commitment to the labour market and a slightly larger share of the burden of domestic labour, have a higher commitment to formal voluntary activity but engage less in informal volunteering than their British counterparts whereas French men, with shorter hours in employment and a slightly smaller contribution to domestic labour, undertake more formal and informal voluntary work than their British counterparts. In France, men consistently undertake more voluntary work than women whilst in Britain, there is a degree of gender equality in formal voluntary work but women undertake significantly more informal voluntary work than men. The paper explains the differences and similarities found by considering the role of the state and social policy, the question of ‘time availability’, and the question of what motivates individuals to undertake voluntary work.     

Public Support for International Human Rights Institutions: A Cross‐National and Multilevel Analysis

The expansion of international human rights institutions has drawn much attention. Bringing together theories from sociology, political science, and international law, this article examines what factors promote public support for international human rights institutions, using the recent wave of the World Values Survey data (2005–2008). The level of public support displays both cross‐national and cross‐individual variations, so I conceptualize it as a two‐level process and employ the multilevel modeling. At the individual level, it is found that men, younger people, and individuals with more education and income show a higher level of support. At the country level, national affluence, political change (de‐democratization), and linkage to the world society are associated with more support. I further integrate individual‐level characteristics and country‐level social contexts, and pay special attention to education. Education is the institutional link between macro‐level social influences and micro‐level individual attitudes. I find that the support‐promoting effect of education is contingent on social contexts. It is more salient in wealthy countries and countries with strong ties to the world society.     

Global value chains and traditional supply chains: Evidence from Guatemala

Global value chains have been at the centre of recent research, but traditional supply chains have been given much less attention. However, quantitative data on both chain types is scarce. Therefore, it remains unclear how much smallholders, formal and informal sectors in traditional and global value chains contribute to gross domestic product (GDP), employment generation and income distribution. This article, by using a broad primary data set of 28 value chains in Guatemala, evidences that traditional chains contribute substantially to the national economy and that the income generated is much more equally distributed than in global value chains.     

Social closure,micro‐class immobility and the intergenerational reproduction of the upper class: a comparative study

This article assesses how processes of social closure enhance intergenerational immobility in the regulated professions and thus promote persistence at the top of the occupational hierarchy. We compare four European countries (GB, Germany, Denmark and Sweden) that differ considerably in their degree of professional regulation and in their broader institutional arrangements. We run log‐linear and logistic regression models on a cumulative dataset based on three large‐scale surveys with detailed and highly comparable information at the level of unit occupations. Our analyses indicate that children of licensed professionals are far more likely to inherit the occupation of their parents and that this stronger micro‐class immobility translates into higher chances of persistence in the upper class. These results support social closure theory and confirm the relevance of a micro‐class approach for the explanation of social fluidity and of its cross‐national variations. Moreover, we find that, when children of professionals do not reproduce the micro‐class of their parents, they still display disproportionate chances of persistence in professional employment. Hence, on the one hand, processes of social closure erect barriers between professions and fuel micro‐class immobility at the top. On the other hand, the cultural proximity of different professional groups drives intense intergenerational exchanges between them. Our analyses indicate that these micro‐ and meso‐class rigidities work as complementary routes to immobility at the top.     

Informal Caregiving at Working Age: Effects of Job Characteristics and Family Configuration

This article addresses the relationship between employment and providing informal care for sick, disabled, or elderly people in Great Britain. Hazard rate models for taking up caring and leaving work when caring are estimated using retrospective family, employment, and caring data from the British Family and Working Lives Survey 1994 – 1995 for 9,139 British men and women. Family roles but not employment characteristics were relevant for men and women taking up caring. Being in a lower social class was, however, an important predictor of female carers leaving the labor market. Starting caring and quitting the labor market were not affected by women working part time, nor by most aspects of job flexibility that were considered.     

The Socioeconomic Incorporation of Immigrant and Native‐born Day Labourers in Tshwane,South Africa

It has been widely documented that unauthorized immigrants experience adverse economic incorporation in destination countries, particularly in the global North. Faced with restricted employment opportunities, many are drawn into informalizing segments of the labour market where earnings are low and unstable. Much less is known about how immigrant workers fare in the informal economy of cities of the South. Using surveys conducted in 2004, 2007 and 2015, we examine the economic outcomes of immigrant and native‐born workers who participate in the day labour markets of Tshwane, South Africa. In 2004 there were signs that foreign‐born workers enjoyed modestly better outcomes than South Africa‐born workers. In the latter periods, however, these advantages have disappeared and there are indications of a downward convergence of employment outcomes. The article concludes with a call for creating worker centres to regulate informal job markets for the benefit of workers, regardless of immigration status.     

Social effects of group migration between developing countries

Recent large-scale emigrations from developing countries have been provoked by world economic crises and/or by reaction to dangers posed by armed conflicts. Migrants eventually induce social, economic, and political problems in receiving countries, including 1) increases in the population, with adverse effects on existing social institutions; 2) increases in demand for goods and services; 3) displacement of nationals from occupations in the countryside and in the cities; 4) increases in the size of the informal sector of the national economy; 5) deterioration in the salary structures of the informal, rural, and urban sectors of the economy; 6) transculturation; 7) occasional loss of customs and traditions by the local population; and 8) the introduction of diseases and social problems. The receiving countries do benefit from the infusion of skills. Governments must also do everything possible to facilitate integration of refugees. The consequences of migration for developing countries include the following aspects: 1) adaptation of labor markets to demands of the economy, 2) degree and type of concentration of migrant populations in the receiving country, 3) differences that arise between formal and informal and urban and rural sectors of the economy, 4) type and degree of concentration and interaction of population groups, and 5) possible moral deformation of some migrants and their deviant behavior. In conclusion, receiving countries must have policies that responsibly address the presence of economic immigrants and refugees on their territory, without this being considered detrimental to the national interest.     

Overcoming the Neglect of Social Process in Cross‐National and Comparative Criminology

How and why crime rates vary across different societal and cultural contexts has been a perennial question within criminological research. Numerous studies have emerged in recent years responding to calls for criminology to examine the cross‐cultural relevance of contemporary theory. While many of these studies have made significant advances, a great deal of work remains to be done in the development of theory, measurement, and methods. The present article examines the state of cross‐national criminological research, including a discussion of challenges in examining key theoretical questions. Promising avenues for overcoming issues with data and developing key theoretical perspectives to better assess how social processes explain cross‐national variations of crime are discussed.     

Education and wage inequality in the informal sector: The case of Cameroon

This article analyses the effects of education on wage inequality in the informal sector in Cameroon. The author uses quantile regression on data from the Second survey on employment and the informal sector in Cameroon (EESI 2) of 2010. The results indicate that both wages and wage inequality increase with education in the informal sector, with tertiary education creating greatest inequality. These findings point to a number of policy recommendations for a transition to formality, such as the creation of more jobs for a skilled workforce, the development of sites adapted to informal sector activities and the creation of more vocational schools.     

The Hidden Costs of Informal Elder Care

Demographic, socio-economic, and political trends throughout the developed world have contrived to make elder care an issue of utmost policy importance. They also have led to sharp reductions in health and social program expenditures. Policymakers are looking to communities to help meet growing care needs because community care is believed to be better and cheaper than institutional care. However, these beliefs become untenable when costs beyond public sector costs are considered. In fact, informal care carries a number of hidden costs that seldom are considered in health and social policy discussions. This article introduces a taxonomy of the costs of informal elder care, which can be categorized as out-of-pocket expenditures, foregone employment opportunities, unpaid labor, and emotional, physical and social well-being costs. Then, an illustration is provided regarding how the taxonomy can be applied to understanding the incidence, magnitude, and distribution of these costs among stakeholder groups. This taxonomy can help inform ongoing debate about health and social policy reform.     

Gender,labour and the law: the nexus of domestic work,human trafficking and the informal economy in the United Arab Emirates

Based on ethnographic fieldwork with female migrants in the United Arab Emirates, the focus of this article is on the confluence of human trafficking discourses, gendered migration, domestic work and sex work in the UAE. I explore three main findings. First, domestic work and sex work are not mutually exclusive. Second, women choose to enter sex work in preference to domestic work because of poor working conditions in the latter. Third, global policies on human trafficking that seek to restrict female migration have inspired female migrants in the Gulf in search of higher wages and increased autonomy to look for employment in the informal economy. Employing a theoretical lens that emphasizes structural violence, the article chronicles the individual and macro social factors structuring the transition of female migrants from the formal economy of domestic and care work into the informal economy of sex work.     

Informal Economic Activities in Industrialized Nations: Insights From Belgium and the United Kingdom

This study examines how informal economic activities (IEAs) can be (re)formalized in a way that will not destroy their potential for being assets for community development. The very concept of collaborative development in public administration is applied to social work’s asset-based community development (ABCD). This cross-application enables the exploration of alternatives for the challenges encountered in IEAs within industrialized nations. The authors argue that IEAs differ from the underground economy and deserve a different policy response. Social capital will be the overarching framework. Studies of two Western European countries (specifically, Belgium and the UK) will be used as examples.     

Good jobs and bad jobs for Indonesia's informal workers

In contrast to the majority of studies that have treated informal workers as a single homogeneous group, this article accounts for the possibility of “winners” and “losers” among informal workers. Applying unconditional quantile regressions to data from the Indonesian Family Life Survey, the authors are able to estimate the formal–informal wage gaps for different segments of the earnings distribution. Although the evidence confirms the existence of a substantial earnings penalty for many informal workers, there is also a group who earn roughly similar incomes to formal workers. The findings are consistent with Fields's (1990 and 2005) model of heterogeneous informal employment.