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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 uses a representative sample of U.S. workers to examine how self-employment may reduce work-life conflict. We find that self-employment prevents work from interfering with life (WIL), especially among women, but it heightens the tendency for life to interfere with work (LIW). We show that self-employment is connected to WIL and LIW by different causal mechanisms. The self-employed experience less WIL because they have more autonomy and control over the duration and timing of work. Working at home is the most important reason the self-employed experience more LIW than wage and salary workers.

Controversy in the literature exists over whether self-employment is driven by worker’s deliberate entrepreneurial choices (pull factors) or an indeliberate subsistence employment option (push factors) in developing countries. It is therefore very important to investigate whether the self-employed are the dynamic entrepreneurial group or the subsistence-oriented group. In this chapter, the authors examine the driving forces behind the plausible growth of self-employment in urban and rural Nigeria by analyzing the self-employment choices as a function of employment’s differences in predicted earnings, human capital, demographic and family characteristics. Using the 2010/2011 and 2012/2013 waves of the General Household Survey Panel data for Nigeria, this chapter utilizes the Random Effects Regression Models (OLS and Probit Models). This chapter finds that the predicted individual earning differences between self- and paid-employment has a negative significant effect on self-employment choices – contrary to developed countries’ evidence. In other words, overwhelmingly the poor are “entrepreneurs.” This therefore means that self-employment choice is driven by the necessity of survival – the subsistence self-employed groups rather than the dynamic entrepreneurial hypothesis. The implication of these finding is unique and interesting for an African country such as Nigeria where the self-employees are vulnerable to poverty and perhaps an involuntary employment option conditioned by economic failures.

Using unique register data for Sweden we match self-employed persons to their employees. The purpose of the paper is to investigate which factors that influence the composition of the workforce in terms of national background. To analyse workforce composition we estimate the probability of only employing co-nationals in the firm. A majority of the self-employed do not have employees so the used sample constitutes a small share of all self-employed. To account for the selection in the choice of having employees we estimate a selection model of Heckman type.

We find that a higher share of immigrants in the municipality increases the probability of hiring immigrants, both for native and immigrant self-employed. We also find that the probability for immigrants to only employ co-nationals decreases with time spent in Sweden. These results point to that the proximity to people from the same region and one's network plays an important part for the employment decisions for the self-employed.

This study explores the manner in which gender inequality in the transition into self-employment is associated with the institutional contexts of family and labour market structures in the East Asian countries of Japan, Korea and Taiwan. This work contributes to theoretical debates on gender inequality and entrepreneurship because prior research on female self-employment has lacked a theoretical viewpoint on the mechanisms by which conditions for female entrepreneurship depend on the macro-structural arrangements of family and labour markets. By evaluating female employment in light of the patriarchal Confucian ideology, I examine gender disparities among individuals in terms of effects of paternal self-employment, their experiences as family workers and their marital status on their transition into self-employment. The results of this study show that women in Japan and Taiwan do not benefit from the self-employed status of their fathers as much as their male counterparts. Additionally, female family workers in the three countries had considerable disadvantages in becoming self-employed, which implies that female family workers continue to be exploited by self-employed owners, namely, their husbands. In contrast, the effects of marital status, with both sexes, on their transitions into self-employment differed widely among the three countries, reflecting the various barriers to self-employment and the differing conditions for female employment in each country. Overall, this study demonstrates that gender inequality in the transition into self-employment is related to family structures unique to these East Asian countries. This study, however, did not compare the dynamics of self-employment between East Asian societies and other industrialised nations. Future studies should explore whether the findings of this study are applicable to other industrialised societies.

This research compares the effects of career credentials and family factors on self-employment careers in the United States and Western Germany. In Germany, both general education and vocational credentials structure self-employment, primarily at entry. In the United States, general education alone structures self-employment, primarily by stabilizing the self-employment careers of workers with higher credentials. Intergenerational transmission of self-employment is more prominent among men, while spousal transmission of self-employment status is more prominent among women. In the United States, but not in Germany, there is evidence of a “caretaker” pathway that brings mothers of young children into self-employment for short periods of time.

I evaluate how the tax reform of 2012 reduced informality in Colombia both theoretically and empirically. Theoretically, I develop a labor market model and obtain simulations indicating that the reform should reduce informality significantly. Empirically, I obtain difference-in-difference estimates from two household surveys. Estimates from the repeated cross-sections data indicate small, short-term effects and large long-term effects. Estimates from the household survey panel data are in line with these results. I also simulate difference-in-difference estimates with different combinations of changes in payroll taxes and enforcement indicating that large improvements would have been needed to obtain the corresponding econometric estimates.

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.

The nature of work has changed in the past 30 years but we do not know what these changes have meant for worker job stress. In this chapter we compare data from three surveys of the quality of work life from 1972 to 2002. At the most general level, work today is less stressful than it was in 1972. Workers report fewer job demands, more decision latitude, less job strain, more job security and greater access to job resources and job support. However, these changes have not affected all workers equally. Women, those with less education, non self-employed workers, blue collar workers and workers in manufacturing industries showed the greatest decreases in job stress although levels of job stress remain higher than for comparison groups (men, college educated, white collar, service workers). Changes were not always linear across time suggesting that some aspects of job strain are sensitive to economic cycles.

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.