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Book part
Publication date: 19 November 2019

Yvonne A. Lamptey and Yaw A. Debrah

The informal sector is expanding in the developing countries while the formal sector is shrinking. The loss of employees through workforce reduction strategies has adversely…

Abstract

The informal sector is expanding in the developing countries while the formal sector is shrinking. The loss of employees through workforce reduction strategies has adversely affected trade union membership in Ghana. To make up for the loss of members, the trade unions recruit the informal workers into their fold. Using in-depth interviews, this study explores trade union organization of informal workers and the suitability of these forms of organization within the informal sector in Ghana. The results indicate that formal trade unions are desperately adopting traditional methods and structures to organize informal workers into their fold without success. There is therefore the need for the informal workers to self-organize and for the trade unions to create streams of membership for affiliation.

Details

Advances in Industrial and Labor Relations
Type: Book
ISBN: 978-1-83909-192-6

Keywords

Article
Publication date: 30 November 2021

Priyaranjan Jha and Rana Hasan

The purpose of this paper is to understand labor market regulations and their consequences for the allocation of resources.

Abstract

Purpose

The purpose of this paper is to understand labor market regulations and their consequences for the allocation of resources.

Design/methodology/approach

This paper constructs a theoretical model to study labor market regulations in developing countries and how it affects the allocation of resources between the less productive informal activities and more productive formal activities. It also provides empirical support for some theoretical results using cross-country data.

Findings

When workers are risk-averse and the market for insurance against labor income risk is missing, regulations that provide insurance to workers (such as severance payments) reduce misallocation. However, regulations that simply create barriers to the dismissal of workers increase misallocation and end up reducing the welfare of workers. This study also provides some empirical evidence broadly consistent with the theoretical results using cross-country data. While dismissal regulations increase the share of informal employment, severance payments to workers do not.

Research limitations/implications

The empirical exercise is constrained by the lack of availability of good data on the informal sector.

Originality/value

The analysis of the alternative labor market regulations analyzed in this paper in the presence of risk-averse workers is an original contribution to the literature.

Details

Indian Growth and Development Review, vol. 15 no. 1
Type: Research Article
ISSN: 1753-8254

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Article
Publication date: 17 March 2020

Girish Balasubramanian and Santanu Sarkar

This paper uses the Social Identity Model of Collective Action (SIMCA) framework of Zomeren et al. (2008) to explain the organising experiences of the informal sector workers

Abstract

Purpose

This paper uses the Social Identity Model of Collective Action (SIMCA) framework of Zomeren et al. (2008) to explain the organising experiences of the informal sector workers engaged in large number in the world's largest shipbreaking industry located in the western Indian town of Alang.

Design/methodology/approach

A single case study approach was adopted to understand the participation of shipbreaking workers in their trade union and factors that influence their participation.

Findings

Sense of cohesive collective identity and injustice alongside efficacy considerations have shaped the organising experiences and affected the participation of informal sector workers in their union. The trade union was able to overcome the scourge of invisibility that has been one of the dominant features of informal sector employment.

Research limitations/implications

This paper treated union participation as unidimensional. Besides, the subjective conceptualization of strengths of perceptions of injustice, identities and efficacy considerations could be a limitation. The paper does acknowledge the gendered nature of shipbreaking but have not actively pursued it as a part of our research.

Practical implications

The findings of our study are an exemplar for those who intend to organise informal sector workers, especially precarious workers. The empirical findings allude to the role of trade unions in combating the invisibility, which is one of the defining features of informal sector workers through a distinctive, cohesive identity inculcated in those workers.

Originality/value

This paper has borrowed the SIMCA framework to explore union participation. Organising experiences of precarious workers from the developing world provides a contextual and an empirical novelty to our study.

Details

Employee Relations: The International Journal, vol. 42 no. 3
Type: Research Article
ISSN: 0142-5455

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Article
Publication date: 14 March 2016

Harshana Kasseeah and Verena Tandrayen-Ragoobur

The purpose of this paper is to investigate the characteristics of the ex-garment workers that have turned to self-employment either in the formal or informal sector in the wake…

Abstract

Purpose

The purpose of this paper is to investigate the characteristics of the ex-garment workers that have turned to self-employment either in the formal or informal sector in the wake of the termination of the multi-fibre arrangement, which led to job losses. This move has given rise to a new community of entrepreneurs in the Mauritian landscape. Hence, this paper tells a story of women empowerment to disempowerment and finally the struggle for them to get re-empowered. This study also shows that there has been a limit to which self-employment led to empowerment for these women as their incomes are low, and they remain in vulnerable positions.

Design/methodology/approach

The study analyses the transformation of a sample of ex-garment workers into new entrepreneurs. The analysis in this paper rests on survey data collected from 92 ex-garment female workers, who are presently self-employed in either the formal or informal sectors, in different parts of Mauritius.

Findings

The findings reveal that the self-employed women in the sample, who are also ex-garment female workers, are essentially necessity-driven entrepreneurs. Most of them have only basic primary education and seem to have no other choice than to engage either formally or informally in similar activities, given their prior knowledge and experience in the textile and clothing industries. The authors also find evidence of statistically significant differences across age, marital status and household size between those women in the informal sector compared to those engaged in the formal sector.

Research limitations/implications

Resource constraints aside, this study could benefit from a larger sample cutting across many other sub-sectors. So far, the results of this study are only applicable to the specific sample studied. In terms of implications, the study finds that the relevant authorities should come up with targeted policies to help these women and address and alleviate the barriers that they face.

Practical implications

This study provides an insight to help explain why a large group of women have gone into self-employment in Mauritius in the past 10 years. The authors find that self-employment has provided an empowerment outlet for these women so that they can financially contribute to their household income. From the policy-making perspective, this implies that it is important for the government to support the activities of these self-employed women with conducive policies.

Originality/value

The study helps to advance knowledge on self-employed women in a small vulnerable island economy context. Given that the transition from being employed to unemployed and then the move to self-employment happened in a rather short span of time for these women, the contribution of this study is also to put at the forefront the industrial changes and the individual coping strategies.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 10 no. 1
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 15 May 2023

Eric Amankwa, Godfred Amissah and Richard Okoampa-Larbi

The purpose of this study is to offer a conceptual model that bridges gaps in the current research by combining constructs from the health belief model (HBM) and theory of planned…

Abstract

Purpose

The purpose of this study is to offer a conceptual model that bridges gaps in the current research by combining constructs from the health belief model (HBM) and theory of planned behaviour (TPB). Furthermore, the researchers applied the constructed model to analyse the determinants of workers’ intentions to use e-wallet payment options for business transactions rather than physical currency during the ongoing COVID-19 pandemic. Finally, the paper examines whether there are any significant variations in the usage intentions of Ghanaian workers in the formal and informal sectors.

Design/methodology/approach

The non-probability convenience sampling technique was used to compile the primary respondents among Ghanaian users of e-wallets. Based on constructs derived from the HBM and TPB, an online survey involving the use of a questionnaire was administered to collect quantitative data from 285 formal and informal sector workers in Ghana. Data collected was analysed using the partial least squares-structural equation modelling approach involving the measurement, structural model tests, hypothesis tests and multi-group analysis (MGA) tests.

Findings

This study reveals that workers’ attitudes, subjective norms and perceived susceptibility as the main determinants of intentions to use e-wallets, as the analysis of data lends support to hypotheses involving these constructs. Perceived behavioural control was however not supported by the data analysis as a determinant of workers’ intention. Finally, there were no significant differences between e-wallet usage intentions of formal and informal sector workers in Ghana.

Research limitations/implications

Given the ongoing pandemic, the study recommends that governments of emerging economies should formulate policies that promote the use of e-wallets, to reduce the spread of COVID-19 and at the same time contribute to the quest for a cashless economy. However, the results of the study are only based on data collected from workers in Ghana. Therefore, practitioners should apply the recommendations with discretion and make modifications where necessary. The results of the study also provide evidence from the context of a developing country that can support future academic pursuits.

Practical implications

This study provides evidence that influences practitioners’ decisions and practices regarding the design and implementation of e-wallet services and innovations among workers in the formal and informal sectors of the economy.

Originality/value

This study provides useful business insights to user acquisition managers, marketing managers and business development managers during the formulation of policies, strategies and approaches for their mobile wallet subscriber base. Moreover, to the best of the authors’ knowledge, this study is one of the first to apply the constructs of the HBM (mainly applied in health research) to the study of workers’ intentions to use e-wallets. It, therefore, makes a significant contribution to the existing literature by examining the combined effects of the constructs of the HBM and the TPB on workers’ intention to use e-wallets.

Details

Journal of Science and Technology Policy Management, vol. 14 no. 6
Type: Research Article
ISSN: 2053-4620

Keywords

Book part
Publication date: 12 April 2012

Arnab K. Basu, Nancy H. Chau and Zahra Siddique

We study the impact of tax and minimum wage reforms on the incidence of informality. To gauge the incidence of informality, we use measures of the extent of tax evasion, the…

Abstract

We study the impact of tax and minimum wage reforms on the incidence of informality. To gauge the incidence of informality, we use measures of the extent of tax evasion, the extent of minimum wage noncompliance, and the size of the informal workforce. Our approach allows us to examine (i) the distinction between determinants of firm-level reported wage distribution and actual wage distribution, (ii) the complementarity of tax and minimum wage enforcement, (iii) the impact that a minimum wage reform has on tax and minimum wage compliance, and (iv) the impact that a tax policy reform has on tax and minimum wage compliance. We conclude with the design of optimal minimum wage and tax policies (even in the complete absence of minimum wage enforcement). We do so based on two objectives derived from popular concerns associated with an unchecked expansion of informality: tax revenue maximization, and poverty alleviation among workers.

Details

Informal Employment in Emerging and Transition Economies
Type: Book
ISBN: 978-1-78052-787-1

Keywords

Article
Publication date: 20 June 2019

Chetan Ghate and Debojyoti Mazumder

Governments in both developing and developed economies play an active role in labor markets in the form of providing both formal public sector jobs and employment through public…

Abstract

Purpose

Governments in both developing and developed economies play an active role in labor markets in the form of providing both formal public sector jobs and employment through public workfare programs. The authors refer to this as employment targeting. The purpose of the paper is to consider different labor market effects of employment targeting in a stylized model of a developing economy. In the context of a simple search and matching friction model, the authors show that the propensity for the public sector to target more employment can increase the unemployment rate in the economy and lead to an increase in the size of the informal sector.

Design/methodology/approach

The model is an application of a search and matching model of labor market frictions, where agents have heterogeneous abilities. The authors introduce a public sector alongside the private sector in the economy. Wage in the private sector is determined through Nash bargaining, whereas the public sector wage is exogenously fixed. In this setup, the public sector hiring rate influences private sector job creation and hence the overall employment rate of the economy. As an extension, the authors model the informal sector coupled with the other two sectors. This resembles developing economies. Then, the authors check the overall labor market effects of employment targeting through public sector intervention.

Findings

In the context of a simple search and matching friction model with heterogeneous agents, the authors show that the propensity for the public sector to target more employment can increase the unemployment rate in the economy and lead to an increase in the size of the informal sector. Employment targeting can, therefore, have perverse effects on labor market outcomes. The authors also find that it is possible that the private sector wage falls as a result of an increase in the public sector hiring rate, which leads to more job creation in the private sector.

Originality/value

What is less understood in the literature is the impact of employment targeting on the size of the informal sector in developing economies. The authors fill this gap and show that public sector intervention can have perverse effects on overall job creation and the size of the informal sector. Moreover, a decrease in the private sector wage due to a rise in public sector hiring reverses the consensus findings in the search and matching literature which show that an increase in public sector employment disincentivizes private sector vacancy postings.

Details

Indian Growth and Development Review, vol. 12 no. 2
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 23 October 2020

Ayokunle Olumuyiwa Omobowale, Olufikayo Kunle Oyelade, Mofeyisara Oluwatoyin Omobowale and Olugbenga Samuel Falase

The index case of COVID-19 in Nigeria was reported on 27 February 2020. Subsequently, the exponential increase in cases has brought about the partial and total lockdown of cities…

Abstract

Purpose

The index case of COVID-19 in Nigeria was reported on 27 February 2020. Subsequently, the exponential increase in cases has brought about the partial and total lockdown of cities, the closure of all schools and the shutdown of government offices in order to curtail the spread of COVID-19. COVID-19 and its subsequent drastic curtailment policies have implications on vulnerable groups, especially, informal workers who constitute about 70% of the active working population in Nigeria. This reflective discourse critically engages the plight of informal workers in the context of the COVID-19 pandemic in Nigeria.

Design/methodology/approach

The research was guided by the epistemology of pandemic interpretationism. It engages contextual reflections of the plight of economically vulnerable informal workers in Nigeria. Data were collected from secondary sources while rapid case studies were conducted with ten informal workers in Lagos and Ibadan. Afterwards, data were contextually analysed.

Findings

Economically vulnerable informal workers in Nigeria have contextually interpreted COVID-19 as an elite disease, imported into Nigeria by the wealthy. In addition, the mass population views COVID-19 containment measures such as lockdowns, movement restrictions and stay-at-home orders as elitist policies, which are aimed at protecting the wealthy and frustrating the poor and economically vulnerable who live on the fringes of poverty. Many informal workers have slipped below the poverty line while struggling to supply livelihood needs, as they were unable to earn daily income and cannot access palliatives. Consequently, they are of the opinion that “Hunger Virus is deadlier than Corona Virus”.

Originality/value

This paper is a contextual reflection on the plight of economically vulnerable informal workers during the COVID-19 pandemic lockdown and movement restrictions in Nigeria. It presents pandemic interpretationism as an epistemological guide and reflectively examines the poverty impact of COVID-19 on the Nigerian informal sector via contextual analyses of secondary data and rapid case studies. The paper uncovers various COVID-19 livelihood experiences and the responses of the informal workers; furthermore, it provides policy recommendations.

Details

International Journal of Sociology and Social Policy, vol. 40 no. 9/10
Type: Research Article
ISSN: 0144-333X

Keywords

Abstract

Details

Understanding the Mexican Economy
Type: Book
ISBN: 978-1-78769-066-0

Book part
Publication date: 10 December 2018

Rina Agarwala and Jennifer Jihye Chun

Gender is a defining feature of informal/precarious work in the twenty-first century, yet studies rarely adopt a gendered lens when examining collective efforts to challenge…

Abstract

Gender is a defining feature of informal/precarious work in the twenty-first century, yet studies rarely adopt a gendered lens when examining collective efforts to challenge informality and precarity. This chapter foregrounds the gendered dimensions of informal/precarious workers’ struggles as a crucial starting point for re-theorizing the future of global labor movements. Drawing upon the findings of the volume’s six chapters spanning five countries (the United States, Canada, South Korea, Mexico, and India) and two gender-typed sectors (domestic work and construction), this chapter explores how gender is intertwined into informal/precarious workers’ movements, why gender is addressed, and to what end. Across countries and sectors, informal/precarious worker organizations are on the front lines of challenging the multiple forms of gendered inequalities that shape contemporary practices of accumulation and labor regulation. They expose the forgotten reality that class structures not only represent classification struggles around work, but also around social identities, such as gender, race, and migration status. However, these organizing efforts are not fighting to transform the gendered division of labor or embarking on revolutionary struggles to overturn private ownership and liberalized markets. Nonetheless, these struggles are making major transformations in terms of increasing women’s leadership and membership in labor movements and exposing how gender interacts with other ascriptive identities to shape work. They are also radicalizing hegemonic scripts of capitalist accumulation, development, and even gender to attain recognition for female-dominated occupations and reproductive needs for the first time ever. These outcomes are crucial as sources of emancipatory transformations at a time when state and public support for labor and social protection is facing a deep assault stemming from the pressures of transnational production and globalizing markets.

Details

Gendering Struggles against Informal and Precarious Work
Type: Book
ISBN: 978-1-78769-368-5

Keywords

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