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1 – 10 of 898Aldo Salinas and Cristian Ortiz
The purpose of this study is to examine the relationship between the productive structure and the size of the informal economy in Latin American countries.
Abstract
Purpose
The purpose of this study is to examine the relationship between the productive structure and the size of the informal economy in Latin American countries.
Design/methodology/approach
The study employs econometric techniques for panel data covering the period from 2002 to 2017 and considering 17 Latin American countries. The evidence presented is based on the informal economy data generated by Medina and Schneider (2018) who estimate the size of the informal economy using a structural equation model and the share of manufacturing in total employment as a measure of the size of the manufacturing sector. Also, the study addresses the possible endogeneity bias in the relationship studied and makes the conclusions more robust, thus avoiding spurious correlations that weaken the findings.
Findings
The results indicate that most industrialized Latin American countries are associated with a smaller size of the informal economy.
Practical implications
The findings have important policy implications, as they suggest that Latin American economies need to switch the structure of the economy toward more sophisticated productive structures if they want to reduce the size of the informal economy. Thus, more efforts should be deployed to policies to diversify and upgrade economies.
Originality/value
The study contributes to the literature on the informal economy by connecting the country’s productive structure and informality. Specifically, the results show that the productive structure of countries is a plausible explanation for the size of the informal economy.
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Amrita Hari, Luciara Nardon and Dunja Palic
Educational institutions are investing heavily in the internationalization of their campuses to attract global talent. Yet, highly skilled immigrants face persistent labor market…
Abstract
Purpose
Educational institutions are investing heavily in the internationalization of their campuses to attract global talent. Yet, highly skilled immigrants face persistent labor market challenges. We investigate how immigrant academics experience and mitigate their double precarity (migrant and academic) as they seek employment in higher education in Canada.
Design/methodology/approach
We take a phenomenological approach and draw on reflective interviews with nine immigrant academics, encouraging participants to elaborate on symbols and metaphors to describe their experiences.
Findings
We found that immigrant academics constitute a unique highly skilled precariat: a group of professionals with strong professional identities and attachments who face the dilemma of securing highly precarious employment (temporary, part-time and insecure) in a new academic environment or forgoing their professional attachment to seek stable employment in an alternate occupational sector. Long-term, stable and commensurate employment in Canadian higher education is out of reach due to credentialism. Those who stay the course risk deepening their precarity through multiple temporary engagements. Purposeful deskilling toward more stable employment that is disconnected from their previous educational and career accomplishments is a costly alternative in a situation of limited information and high uncertainty.
Originality/value
We bring into the conversation discussions of migrant precarity and academic precarity and draw on immigrant academics’ unique experiences and strategies to understand how this double precarization shapes their professional identities, mobility and work integration in Canadian higher education.
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This study aims to analyze the factors driving Syrian refugees into the informal labor market in Türkiye despite the existence of regulations and programs to facilitate their…
Abstract
Purpose
This study aims to analyze the factors driving Syrian refugees into the informal labor market in Türkiye despite the existence of regulations and programs to facilitate their integration into the formal labor market.
Design/methodology/approach
This study presents results from a literature review of secondary sources and primary data collection through semi-structured interviews with key stakeholders and Syrian refugees.
Findings
The study shows that the implementation of policies and programs to boost formal employment among refugees has yielded limited results. Many refugees continue to operate within the informal economy. This informality is due to various socio-economic challenges, including anti-refugee sentiments, geographical restrictions and economic crises. The 2023 twin earthquakes have further exacerbated the vulnerable situation of refugees, intensifying the difficulty of achieving self-reliance.
Research limitations/implications
The study’s drawbacks include a small sample size. This implies that the sample is not representative; therefore, results may lack generalizability.
Practical implications
The study’s findings could stimulate greater engagement in public policy, facilitate the management of public perceptions regarding refugees and provide support to the private sector, all to enhance the integration of Syrian refugees into the formal labor market.
Originality/value
This study addresses crucial areas previously unexplored, including the impact of economic and natural disaster crises on the labor market integration of refugees. To the best of the author’s knowledge, by investigating these factors for the first time, this study offers novel insights into their influence on refugees’ labor market integration.
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Zhongwei Sun, Xuchuang Zhang and Xiaofang Wu
This study investigates the mediating role of wage and workforce adjustments, along with the moderating influence of collective bargaining system and employees’ localization, in…
Abstract
Purpose
This study investigates the mediating role of wage and workforce adjustments, along with the moderating influence of collective bargaining system and employees’ localization, in elucidating the relationship between the COVID-19 shock and workplace employee relations (ER) tension.
Design/methodology/approach
Survey data from 1,483 enterprises across 21 prefectural cities in China’s Guangdong Province are collected. The hypotheses are tested by logistic regression.
Findings
The study reveals a positive correlation between the COVID-19 shock and workplace ER tension across crisis-hit enterprises, irrespective of their size or industrial sector. Wage reduction and mass layoffs emerge as significant mediators, while the collective bargaining system (CBS) and employees’ localization act as moderators.
Research limitations/implications
The measurement of ER is limited in a single-item scale. Representation of China is also limited since the study exclusively focuses on Guangdong province. The study offers some contributions that firm-level data reveal the pathway through which COVID-19 creates ER tension.
Practical implications
On the one hand, the authors recommend the establishment of an effective communication system between employers and employees. On the other hand, managers should consider the role of informal institutions. Furthermore, the authors suggest implementing tailored strategies at the enterprise level.
Social implications
Intense external shocks result in widespread layoffs and increased wage reductions within workplaces, and under such circumstances, formal or informal institutions may be insufficient to alleviate ER tension. In this case, the state authorities – including governments and other public agencies or bodies – are necessary to intervene in to organize tripartite dialogue.
Originality/value
While numerous emerging studies on COVID-19 explore how different countries manage industrial relations tension at the national level, few focus on ER at workplace level, particularly in developing countries. Understanding how workplace ER evolve during external shocks and identifying institutional measures to mitigate their negative impact is crucial for future crisis management.
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Benson Rugalema Mwemezi, Geraldine John Kikwasi and Sarah Phoya
Although there are several established frameworks for health and safety in construction, there are inadequate health and safety conditions at informal construction sites, and no…
Abstract
Purpose
Although there are several established frameworks for health and safety in construction, there are inadequate health and safety conditions at informal construction sites, and no framework has been designed to address this problem. The purpose of this paper is to develop a validated framework for health and safety risk management (HSRM) in informal construction sites with the aim of supporting Sustainable Development Goals 3, 8 and 11 of the 2030 Agenda, which are to ensure everyone enjoys a healthy life and to create inclusive, secure, robust and sustainable cities and human settlements, respectively.
Design/methodology/approach
The study is based on HSRM questionnaire survey and interviews with construction workers working on informal construction sites in Tanzania. A total of 13 health and safety specialists in construction were specifically chosen to validate the proposed framework for HSRM in informal construction to determine its applicability, efficacy and adaptation.
Findings
The validation results demonstrated that all of the suggested metrics within the framework for HSRM in informal construction scored higher than the test value, proving the framework’s feasibility
Originality/value
This research adds to the body of knowledge on the issue in a never-before-seen setting. To the best of the authors’ knowledge, this study is the first empirical study in Tanzania to develop and validate a framework for HSRM in informal construction.
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Brenda Silupu and Sergio Reyes
In developing countries, women microentrepreneurs are characterized as being informal, creating a challenge for the sustainability of their businesses. The purpose of this study…
Abstract
Purpose
In developing countries, women microentrepreneurs are characterized as being informal, creating a challenge for the sustainability of their businesses. The purpose of this study is to analyze different businesses that adopt this form of operation arguing that formality is unnecessary because they are legitimate businesses (institutional reason). In addition, the role of gender in business management was incorporated, and the consistency of the results was validated in the context of COVID-19.
Design/methodology/approach
This study used data from the National Household Survey of Peru for the development of a compared analysis between the period 2018–2019 (pre-COVID-19), made up of a sample of 14,077 observations, and the period 2020–2021 (COVID-19), with 7,922 observations. The unit of analysis was the informal microenterprise with more than three years of operation, and the data was analyzed using a logistic model.
Findings
The probability of adopting informality for institutional reasons is more significant in the case of women in contrast to the men when it is a business belonging to the commerce sector and operating in a dwelling with basic services, while this probability decreases if the firm does not have a fixed location. These results are consistent in pre-COVID-19 and COVID-19 periods.
Originality/value
The purpose of this research was to contribute to closing gaps in the generation of evidence that helps to understand the behavior of informal microentrepreneurs in developing countries, allowing a better approach to this problem for the design and implementation of suitable public policies. All this will contribute to the accomplishment of the Sustainable Development Goals.
Propósito
En países en desarrollo, las mujeres microempresarias se caracterizan por ser informales generando un desafío para la sostenibilidad de sus negocios. La presente investigación analizó diferentes negocios que adoptan esta forma de operación con el argumento de que la formalidad no es necesaria porque son negocios legítimos (motivo institucional); además, se incorporó el rol del género en la gestión del negocio, y se validó la consistencia de los resultados en un contexto de COVID-19.
Diseño/metodología/enfoque
Se utilizaron datos de la Encuesta Nacional de Hogares de Perú para el desarrollo de un análisis comparado entre el período 2018–2019 (pre-COVID-19), compuesto por una muestra de 14.077 observaciones, y el período 2020–2021 (COVID-19), con 7.922 observaciones. La unidad de análisis es la microempresa informal con más de tres años de operación y los datos son analizados mediante un modelo logístico.
Hallazgos
Resulta mayor la probabilidad de adoptar la informalidad por motivos institucionales en el caso de las propietarias en contraste con los propietarios, cuando se trata de un negocio perteneciente al sector comercio y que funciona en una vivienda con servicios básicos, mientras que disminuye esta probabilidad si el negocio no posee un local fijo. Estos resultados son consistentes en tiempos de pre-COVID-19 y COVID-19.
Originalidad/valor
La investigación tiene por fin contribuir al cierre de brechas en la generación de evidencia que ayude a comprender el comportamiento de las mujeres microempresarias informales en países en desarrollo, permitiendo una mayor aproximación a esta problemática para el diseño e implementación de políticas públicas adecuadas. Todo esto contribuirá con los Objetivos de Desarrollo Sostenible.
Propósito
Nos países em desenvolvimento, as mulheres microempreendedoras caracterizam-se por serem informais, criando um desafio para a sustentabilidade dos seus negócios. A presente investigação analisou diferentes negócios que adotam essa forma de operação com o argumento de que a formalidade não é necessária por serem negócios legítimos (razão institucional); além disso, foi incorporado o papel do gênero na gestão empresarial e se validou a consistência dos resultados num contexto de COVID-19.
Desenho/metodologia/abordagem
Se utilizaram dados da Pesquisa Nacional de Domicílios do Peru para desenvolver uma análise comparativa entre o período 2018–2019 (pré-COVID-19), composto por uma amostra de 14.077 observações, e o período 2020–2021 (COVID-19), com 7.922 observações. A unidade de análise é a microempresa informal com mais de três anos de operação e os dados são analisados através de um modelo logístico.
Descobertas
Resulta maior a probabilidade de adoção da informalidade por motivos institucionais no caso das proprietárias em contraste com os proprietários, quando se trata de um negócio pertencente ao setor do comércio e que funciona numa casa com serviços básicos, enquanto esta probabilidade diminui se o negócio não tem local fixo. Estes resultados são consistentes em tempos pré-COVID-19 e COVID-19.
Originalidade/valor
A pesquisa tem como objetivo contribuir no fechamento de brechas na geração de evidências que ajude a compreender o comportamento dos microempreendedores informais nos países em desenvolvimento, permitindo uma melhor abordagem desta problemática para o desenho e implementação de políticas públicas adequadas. Tudo isto contribuirá para o cumprimento dos Objetivos de Desenvolvimento Sustentável.
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This paper aims at assessing the impact of a number of behavioral interventions on the willingness of informal businesses, in the Egyptian informal sector, to join the formal…
Abstract
Purpose
This paper aims at assessing the impact of a number of behavioral interventions on the willingness of informal businesses, in the Egyptian informal sector, to join the formal sector.
Design/methodology/approach
This paper uses an experimental methodology to examine the impact of behavioral interventions on the formalization of the Egyptian informal sector. Specifically, it conducts a survey experiment on a total of 240 informal businesses, operating in the Egyptian informal sector. The primary data collected from the survey experiment is then analyzed using a binary logistic regression to assess the impact of the behavioral primes on the probability of joining the formal market.
Findings
The empirical findings of the survey experiment indicate that the biggest obstacle facing informal businesses is finding a formal source of finance that could help them in penetrating the market. Providing informal businesses with information on funding opportunities offered by the ministry of micro, small and medium enterprises (MSME) significantly increased the probability of joining the formal sector to benefit from this opportunity.
Originality/value
This paper is the first to apply behavioral primes, in the form of informational cues, to the Egyptian case of informal business owners. Previous research on the use of behavioral nudges and primes has focused mainly on the western economies.
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This paper aims to identify the level of contribution of different levels of education to remaining in unemployment as well as the transition from unemployment to employment in…
Abstract
Purpose
This paper aims to identify the level of contribution of different levels of education to remaining in unemployment as well as the transition from unemployment to employment in Egypt.
Design/methodology/approach
In this paper, transition probabilities matrix differentiated by gender, age groups, educational levels, marital status and place of residence based on worker flows across employment, unemployment and out of labor force states during the period 2012–2018 using Egypt Labor Market Panel Survey of 2018. The results point to the highly static nature of the Egyptian labor market. Employment and the out of labor force states are the least mobile among labor market states. This is because employment state is very desirable and the out of labor force is the largest labor market states, especially for females. Also, this study examines the impact of different educational levels separately on remaining in unemployment and transition from unemployment to employment state using eight binary logistic regression models.
Findings
The main results of transitions from unemployment to employment are relatively large for males, elder-age, uneducated workers as well as workers who are not married and urban residents, and the results of the logistic regression models consistent with the transition probabilities matrix results, except for few cases. Based on the above findings, there is enough evidence to accept the null hypothesis that no education has a positive significant impact to transition unemployed individuals from unemployment to employment, while less than intermediate as well as higher education have a negative significant impact to transition unemployed individuals from unemployment to employment.
Originality/value
This paper proposes to address the problem of the unemployment among highly educated which is much higher compared with illiterates and try to understand the impact of different levels of education separately on the transition from unemployment to employment, to help the policymakers to eradicate the gap between education and the demand of the labor market in Egypt.
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Olatunji David Adekoya, Chima Mordi, Hakeem Adeniyi Ajonbadi and Weifeng Chen
This paper aims to explore the implications of algorithmic management on careers and employment relationships in the Nigerian gig economy. Specifically, drawing on labour process…
Abstract
Purpose
This paper aims to explore the implications of algorithmic management on careers and employment relationships in the Nigerian gig economy. Specifically, drawing on labour process theory (LPT), this study provides an understanding of the production relations beyond the “traditional standard” to “nonstandard” forms of employment in a gig economy mediated by digital platforms or digital forms of work, especially on ride-hailing platforms (Uber and Bolt).
Design/methodology/approach
This study adopted the interpretive qualitative approach and a semi-structured interview of 49 participants, including 46 platform drivers and 3 platform managers from Uber and Bolt.
Findings
This study addresses the theoretical underpinnings of the LPT as it relates to algorithmic management and control in the digital platform economy. The study revealed that, despite the ultra-precarious working conditions and persistent uncertainty in employment relations under algorithmic management, the underlying key factors that motivate workers to engage in digital platform work include higher job flexibility and autonomy, as well as having a source of income. This study captured the human-digital interface and labour processes related to digital platform work in Nigeria. Findings of this study also revealed that algorithmic management enables a transactional exchange between platform providers and drivers, while relational exchanges occur between drivers and customers/passengers. Finally, this study highlighted the perceived impact of algorithmic management on the attitude and performance of workers.
Originality/value
The research presents an interesting case study to investigate the influence of algorithmic management and labour processes on employment relationships in the largest emerging economy in Africa.
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Claudio Bravo-Ortega, Carla Bustamante, Pablo Egana del Sol, Felipe Symmes and José Sexton
The purpose of this study is to investigate the role of sales, as a proxy for size, in moderating the impact of institutional incongruence between formal and informal institutions…
Abstract
Purpose
The purpose of this study is to investigate the role of sales, as a proxy for size, in moderating the impact of institutional incongruence between formal and informal institutions on the formalization of microenterprises in middle-income countries in Latin America.
Design/methodology/approach
The paper uses a probit regression model to examine business formalization as a binary outcome of formal and informal institutions. Data was collected through interviews and surveys across 52 municipalities in the Metropolitan Region of Santiago, Chile. The study used a stratified sampling approach and was conducted between November 2022 and January 2023.
Findings
The results offer three key insights into the formalization of microenterprises in middle-income countries. First, we show that formal institutions do not significantly influence formalization decisions among microentrepreneurs in middle-income countries, challenging the traditional belief that formal institutions alone significantly influence formalization in these contexts. Second, we show that informal institutions are significant predictors of informality, especially among smaller microenterprises. Third, we highlight that the smaller the business, the stronger the negative effect of informal institutions on formalization, and thus, the institutional incongruence between formal and informal institutions decreases for larger businesses.
Originality/value
This paper contributes to management literature by shedding light on the drivers of formalization in middle-income countries, a departure from most formalization studies wherein the focus is primarily on low-income economies. The findings suggest that policymakers in middle-income countries should focus on enabling microenterprise growth through sales, rather than targeting specific demographic groups or relying solely on formal institutional enforcement to promote formalization.
Propósito
El objetivo de este estudio es investigar el papel de las ventas, utilizadas como un indicador de tamaño, en la mediación del impacto de la incongruencia institucional entre instituciones formales e informales en la formalización de microempresas en países de ingresos medios en América Latina.
Método
Utilizamos un modelo de regresión Probit para examinar la formalización empresarial como un resultado binario de instituciones formales e informales. Los datos se recopilaron a través de 110 entrevistas y encuestas en 52 municipios de la Región Metropolitana de Santiago, Chile. El estudio empleó un enfoque de muestreo estratificado y se llevó a cabo entre noviembre de 2022 y enero de 2023.
Hallazgos
Nuestros resultados ofrecen tres ideas clave sobre la formalización de microempresas en países de ingresos medios. Primero, demostramos que las instituciones formales no influyen significativamente en las decisiones de formalización entre las microempresas en países de ingresos medios; esto desafía la creencia tradicional de que las instituciones formales por sí solas influyen significativamente en la formalización en estos contextos. Segundo, nuestro estudio muestra que las instituciones informales son predictores significativos de la informalidad, especialmente entre las microempresas más pequeñas. Tercero, nuestro estudio destaca que el efecto negativo de las instituciones informales sobre la formalización es más fuerte para negocios de menor tamaño; por lo tanto, la incongruencia institucional entre instituciones formales e informales disminuye para negocios de mayor tamaño.
Originalidad
Este artículo contribuye a la literatura iluminando sobre los impulsores de la formalización en países de ingresos medios, a diferencia de la mayoría de los estudios de formalización en la región latinoamericana que se centran principalmente en países de bajos ingresos. Nuestros hallazgos sugieren que los responsables de políticas en países de ingresos medios deberían centrarse en impulsar el crecimiento de las microempresas a través de las ventas, en lugar de enfocarse en grupos demográficos específicos o depender únicamente del cumplimiento institucional formal para promover la formalización.
Propósito
O objetivo deste estudo é investigar o papel das vendas, usadas como um indicador de tamanho, na mediação do impacto da incongruência institucional entre instituições formais e informais na formalização de microempresas em países de renda média na América Latina.
Método
Utilizamos um modelo de regressão Probit para examinar a formalização empresarial como um resultado binário de instituições formais e informais. Os dados foram coletados por meio de 110 entrevistas e pesquisas em 52 municípios da Região Metropolitana de Santiago, Chile. O estudo empregou uma abordagem de amostragem estratificada e foi realizado entre novembro de 2022 e janeiro de 2023.
Resultados
Nossos resultados oferecem três ideias-chave sobre a formalização de microempresas em países de renda média. Primeiro, demonstramos que as instituições formais não influenciam significativamente as decisões de formalização entre as microempresas em países de renda média; isso desafia a crença tradicional de que as instituições formais, por si só, influenciam significativamente a formalização nesses contextos. Segundo, nosso estudo mostra que as instituições informais são preditores significativos da informalidade, especialmente entre as microempresas menores. Terceiro, nosso estudo destaca que o efeito negativo das instituições informais sobre a formalização é mais forte para negócios de menor porte; portanto, a incongruência institucional entre instituições formais e informais diminui para negócios de maior porte.
Originalidade
Este artigo contribui para a literatura iluminando os impulsionadores da formalização em países de renda média, ao contrário da maioria dos estudos de formalização na região latino-americana, que se concentram principalmente em países de baixa renda. Nossos achados sugerem que os responsáveis pelas políticas em países de renda média deveriam focar em impulsionar o crescimento das microempresas por meio das vendas, em vez de se concentrar em grupos demográficos específicos ou depender exclusivamente do cumprimento institucional formal para promover a formalização.
Details
Keywords
- Informal economy
- Middle-income countries
- Latin America
- Formal and informal institutions
- Entrepreneurship
- Microenterprises
- Economía informal
- Países de ingresos medios
- América Latina
- Instituciones formales e informales
- Emprendimiento
- Microempresas
- Economia informal
- Países de renda media
- América Latina
- Instituições formais e informais
- Empreendedorismo
- Microempresas