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In the years 2003–2008, the Russian economy experienced a period of strong and sustained growth, which was accompanied by large worker turnover and rising informality. We investigate whether the burden of informality falls disproportionately on job separators (displaced workers and quitters) in the Russian labor market in the form of informal employment and undeclared wages in formal jobs. We also pursue the issues whether displaced workers experience more involuntary informal employment than workers who quit and whether informal employment persists. We find a strong positive link between separations and informal employment as well as shares of undeclared wages in formal jobs. Our results also show that displacement entraps some of the workers in involuntary informal employment. Those who quit, in turn, experience voluntary informality for the most part, but there seems a minority of quitting workers who end up in involuntary informal jobs. This scenario does not fall on all separators but predominantly on those with low human capital. Finally, informal employment is indeed persistent since separating from an informal job considerably raises the probability to be informal in the subsequent job.

Purpose – This chapter illustrates how an economic sociology of work exposes the deeply embedded nature of the informal economy and the social and political lives of its growing mass of unprotected workers under globalization. In particular, the premises of economic sociology offer a comprehensive definition of the informal economy that I term, “relational.” In contrast to definitions based on modernization and neoliberal assumptions of isolated economies, relational definitions of the informal economy expose the structures, networks, and political institutions that intertwine informal workers with the formal economy, society, and the state. Operationalizing the relational definition in labor surveys ensures the inclusion of previously invisible informal workers, especially those who operate at the intersection of the informal and formal economy. As well, it ensures the collection of data on the precise ways in which informal workers are socially and politically embedded, including their collective action efforts, the meaning they attach to their labor, and the social networks that determine their life chances.

Methodology – To illustrate this point, I apply a relational definition of informal labor to the case of India, using the National Sample Survey on Employment and Unemployment, as well as findings from interviews with organized informal workers.

Findings – By doing so, I provide an internationally comparative measure of India's informal workforce, illustrate informal workers’ social conditions relative to those of formal workers, highlight the expansion of the informal workforce since the government enacted liberalization reforms, and expose the unique political action strategies Indian informal workers are launching against the state.

Implications/Originality – These findings help us understand Indian informal workers in an internationally comparative context, yielding empirical insights on their social conditions and political organizations for the first time. As well, they call for an important refinement to existing definitions of the informal economy that to date have relied only on Latin American and African experiences.

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.

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.

The analysis presented in this chapter defines three different synthetic measurements of disincentives for formal work: two standard measurements, namely, the tax wedge and the marginal effective tax rate (METR); and a new, innovative measurement called formalization tax rate (FTR). The novelty of the latter is that it measures disincentives stemming not only from labor taxation but also from benefit withdrawal due to formalization. A descriptive analysis across a large number of OECD and Eastern European countries reveals that the disincentives for formal work – when measured through the FTR – are especially high for low-wage earners. This suggests that formal work might not pay in this segment of the labor market, in particular for the so-called mini-jobs and midi-jobs (low-paying part-time work).

Another novelty of the chapter is its empirical approach. Using EU-SILC 2008 data and OECD Tax and Benefit data for six Eastern European countries (Bulgaria, the Czech Republic, Estonia, Latvia, Poland, and Slovakia), we match disincentives for formal work to individual observations in a large data set. Applying a probit regression, the analysis finds a significant positive correlation between FTR or METR and the incidence of being informal. In other words, controlling for individual and job characteristics, the higher the FTR or the METR that individuals are facing is, the more likely they are to work informally. The tax wedge, on the other hand, yields a negative correlation. This indicates that the tax wedge is not sufficiently capturing disincentives for formal work. We also conclude that in cross-country analysis, it might be more useful to use the tax wedge that applies to low-wage earners as opposed to average wage earners.

This study investigates the formal/informal employment earnings gap in Turkey. We focus on the earnings differentials that can be explained by observable characteristics and unobservable time-invariant individual heterogeneity. We first, estimate the standard Mincer earnings equations using ordinary least squares (OLS), controlling for individual, household, and job characteristics. Next we use, panel data and the quantile regression (QR) techniques in order to account for unobserved factors which might affect the earnings and the intrinsic heterogeneity within formal and informal sectors. OLS results confirm the existence of an informal sector penalty almost half of which is explained by observable variables. We find that formal-salaried workers are paid significantly higher than their informal counterparts and of the self-employed confirming the heterogeneity within the informal employment. QR results show that pay differentials are not uniform along the earnings distribution. In contrast to the mainstream literature which views informal self-employment as the upper-tier and wage-employment as the lower-tier, we find that self-employment corresponds to the lower-tier in the Turkish labor market. Finally, fixed effects estimation indicates that unobserved individual characteristics combined with controls for observable characteristics explain the pay differentials between formal and informal employment entirely in the total and the female sample. However, informal sector penalty persists in the male sample.

This paper explores the perceptions and experiences of women and men who work as informal waste collectors in four different cities. The purpose of this paper is to map out how and to what extent occupational, political-legal, economic and social dynamics are experienced differently by gender in a highly vulnerable segment of the urban informal economy, and explore gender differences in these workers’ coping strategies and the levels of action they develop to protect their livelihoods.

The analysis is based on a mixed methods study which combined a quantitative survey of informal workers with a qualitative participatory methodology. Study participants were drawn from a purposive sample of informal workers who belong to, or are affiliated with, membership-based workers’ organisations. The sample consists of waste pickers (n=614) from Belo Horizonte, Brazil; Bogotá, Colombia; Durban, South Africa; and Nakuru, Kenya.

The data show that despite significant differences between women and men upon entry into (informal) employment, their perceptions of key drivers and impacts are largely similar, with the exception of concerns around various types of physical security among women. They also indicate that levels of action among men and women waste pickers are only moderately influenced by gender, but are strongly influenced by the degree of organisation in the sector and the symbolic assets held by workers. The findings also illustrate the way in which gendered power dynamics operate within the informal recycling sector and how different levels of sector organisation and development often contribute to opportunities for collective action and, in turn, a reduction in gendered vulnerabilities.

The study offers a new policy angle which connects the level of sector organisation and development with the levels of action taken by informal workers in adapting to different types of shocks, as well as what this means in terms of gender empowerment.

The paper aims to focus the attention on a particular segment of the labor market – informal workers. Despite a large literature on migration, interesting and relevant questions remain to be studied. The paper investigates whether informal workers could be compared to political refugees in terms of their performance in the source and in the destination economies. The paper estimates the effects of wage differentials, education and other personal and labor market controls on the probability of migration.

The paper studies empirically the probability of migration of workers engaged in informal activities in Brazil using a binary choice model (probit) with particular attention to the self-selection problem of migrants. The paper uses data from the Informal Urban Economy Survey (IBGE).

The results show that the probability of migration of informal workers is negatively related to a worker's education level. The paper finds that the probability of migration is increasing in the ability bias and in wage differentials. The results bring new evidence regarding the possibility of negative selection of migrants considering their observable characteristics, while it corroborates a positive selection of ability or unobservable characteristics of informal worker migrants. The paper presents evidence that less-educated workers are more likely to migrate and show that informal workers migrants behave as economic refugees.

To the best of the authors' knowledge, this is the first paper to study the migration of workers engaged in informal activities.

In this chapter, we aim to illustrate some of the forms taken by informal employment in the global south and how these can best be understood by adopting a wider analytical lens than has been applied in much of the precarious employment literature. We draw on the findings of a recent study of the working conditions of urban informal workers from 10 cities in the global south. The study consisted of focus groups (15 in each city) conducted through the framework of a participatory informal economy appraisal as well as a survey of 1,957 home-based workers, street vendors, and waste pickers. Our findings illustrate a number of ways in which these three groups of informal workers are embedded within the formal economy. While they are not engaged in wage employment, they play subordinate roles to both formal sector firms within global production networks and unequal production relations and to the state through, inter alia, constrained access to public spaces and regulation. In order to interpret these findings, we apply Agarwala’s (2009) “relational” lens to demonstrate how risks and costs are transferred to workers who constitute the “real economy” in much of the global south. Given the often disguised connections between informal employment and the formal economy, this approach also provides a bridge to understanding precarious working conditions and the effects of globalization outside of the industrialized north.

In the process of school-to-work transition, the role of general education and vocational education and training (VET) remains quite central. Based on the human capital theory, we estimate whether investment in VET brings additional returns for workers across the age cohorts.

The focus of our study being the labour market in India, the data from the Periodic Labour Force Survey 2018–19, conducted by the National Statistical Office, has been used for analysis. We have applied the ordinary least square method with sample selection correction, the quasi-experimental technique of propensity score matching and heteroskedasticity based instrumental variable approach to estimate the returns with respect to no VET, formal VET and informal VET.

Our study shows that workers with formal VET earn higher wages than workers with no VET or informal VET. The study finds that workers with informal VET do not earn higher wages than workers with no VET. Moreover, from the age cohort analysis, we have deduced that wage advantage of workers with formal VET persists across all age cohorts and, in fact, accentuates with an increase in age.

We have estimated that VET being complemented with basic general education fetches higher returns in the labour market, especially when provided through formal channels. Moreover, to the best of our knowledge, in the case of developing countries where informal VET is widely provided, this is one of the first studies that captures the return to informal VET. Lastly, complementing the existing studies on the developed countries, we have estimated the returns to VET over the life cycle of the workers.