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Article
Publication date: 4 April 2024

Aldo 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.

Details

Journal of Entrepreneurship and Public Policy, vol. 13 no. 2
Type: Research Article
ISSN: 2045-2101

Keywords

Article
Publication date: 15 January 2024

Tommaso Aguzzi, Rodica Ianole-Calin and Susanne Durst

This paper aims to investigate whether Kazakh small- and medium-sized enterprises (SMEs) that claim to compete with the informal sector are more likely to invest in innovation…

Abstract

Purpose

This paper aims to investigate whether Kazakh small- and medium-sized enterprises (SMEs) that claim to compete with the informal sector are more likely to invest in innovation than their competitors who do not perceive such pressure.

Design/methodology/approach

Logistic regression and classification trees are performed on the Business Environment and Enterprise Performance Survey (2018–2020) to examine whether the degree of informal competition correlates with a firm's propensity to innovate.

Findings

The findings show that informal sector competition is a critical factor that shapes the organizational behaviour of Kazakh SMEs. There is a stimulating positive effect of informal competition on both product and process innovation, depending on its perceived intensity.

Originality/value

This study challenges conventional thinking that still views informal sector competition as a barrier to innovation and entrepreneurship by assessing whether innovation is compatible with informal entrepreneurial practice.

Details

International Journal of Sociology and Social Policy, vol. 44 no. 5/6
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 4 June 2024

Samuel Ampadu Oteng, Padmore Adusei Amoah and Genghua Huang

This study aims to conduct a systematic review of existing literature on ageism among older informal workers, as most studies have focused on formal work settings. Specifically…

Abstract

Purpose

This study aims to conduct a systematic review of existing literature on ageism among older informal workers, as most studies have focused on formal work settings. Specifically, it seeks to identify the scope and characteristics of ageism that older informal workers encounter and its influence on their work and well-being.

Design/methodology/approach

This paper follows the Preferred Reporting Items for Systematic Reviews and Meta-analyses (PRISMA) framework to conduct a systematic review. Eleven studies from six databases were included and thematically analysed.

Findings

The findings revealed four main themes: the contextual nature of ageism, dimensions of work-related ageism, navigating work-related challenges, and effects on well-being. These themes highlight that, despite being perceived as experienced and reliable, older informal workers face exclusion from work opportunities as they are perceived as unproductive and less capable of acquiring new skills. These negative perceptions significantly impacted their willingness to continue working and overall well-being.

Practical implications

The findings offer an overview of extant research and the direction for future research and policy interventions to address ageism among older informal workers. The findings are crucial for enhancing older workers' quality of life, particularly in low- and middle-income countries, where population ageing is the fastest.

Originality/value

This study is one of the few to systematically explore and evaluate empirical evidence on ageism in the informal work sector. It thus expands existing knowledge and understanding of the phenomenon of ageism in a least explored context.

Details

International Journal of Sociology and Social Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-333X

Keywords

Open Access
Article
Publication date: 19 January 2024

Roosa Amanda Lambin and Milla Nyyssölä

Mainland Tanzania has seen two decades of significant social policy reforms and transformations in its social and economic structures, whilst the country continues to grapple with…

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Abstract

Purpose

Mainland Tanzania has seen two decades of significant social policy reforms and transformations in its social and economic structures, whilst the country continues to grapple with persisting gender inequalities. This article examines Tanzania's social policy developments from a gender perspective. The authors analyse the level, reach and quality of social policy delivery to working-age women across the areas of health policy, social protection and employment policy during 2000–2021.

Design/methodology/approach

The article draws on qualitative research deploying the scoping review method. The data consist of diverse secondary materials, including academic publications, government policy documents, relevant statistics and other types of “grey” literature.

Findings

Tanzania has made significant advancements in the legal frameworks around welfare provision and has instituted increasingly gender-responsive government policy plans. The health and social protection sectors, in particular, have witnessed the introduction of large-scale measures expanding social policy implementation. However, social policy delivery remains two-tiered, with differences in provisions for women in the formal and informal sectors.

Originality/value

Social policy delivery and implementation have increased and diversified in Sub-Saharan Africa (SSA) during the new millennium, with a growing integration of gender-specific policy objectives. However, limited social policy scholarship has focused on the gendered effects of broader social policy models in SSA. The article remedies the concomitant knowledge gaps by examining various social policies and their impacts on working-age women in Mainland Tanzania. The authors also engage with the theoretical welfare regime literature and present an analytical framework for gender-sensitive assessment of emerging social policy models in the Global South.

Details

International Journal of Sociology and Social Policy, vol. 44 no. 13/14
Type: Research Article
ISSN: 0144-333X

Keywords

Book part
Publication date: 28 May 2024

Debashis Mazumdar, Mainak Bhattacharjee and Nishat Alam

The context of skill creation and its development is fundamental to sustainable economic growth with vertical improvement in well-being. Now when it comes to the case of less…

Abstract

The context of skill creation and its development is fundamental to sustainable economic growth with vertical improvement in well-being. Now when it comes to the case of less developed countries, the implication of international trade in skill formation takes an idiosyncratic shape so far as our concern: a dearth of skill education and lack of evenness in access to skill education due to the underlying rampant and pronounced economic inequality (i.e., inequality in income and wealth) among people as what is quite typical. Against this backdrop, this chapter seeks to develop a general equilibrium model in line with Jones (1965 & 1971) and Beladi and Marjit (1996) to address how leveraging of foreign trade through technological modernization of exports may work toward skill formation in less developed economies with technological dualism, informalization, and disguised unemployment. Besides, this chapter brings to glare how benefit of such modernization toward skill development stands out to be weighed against a potential worsening of distributive justice in terms of rise in wage gap between skilled and unskilled workers. Moreover, this chapter seeks to overhaul the implication of liberalization of labor market in terms of dilution of minimum wage standard for human development. Thus, the bottom line is that comes up here forth that export modernization in name of improving external competitiveness and thereof attaining effective trade openness can promote skilled human but only risking an exacerbation of wage inequality.

Details

Contemporary Issues in International Trade
Type: Book
ISBN: 978-1-83797-321-7

Keywords

Article
Publication date: 27 May 2024

Moniruzzaman Sarker, Siti Munerah, Angie Teh Yinyi, Nafisa Kasem and Imranul Hoque

This paper aims to understand consumption values buying from informal retail markets (i.e., street vendor retailing). It also explores why consumers prefer daily necessary goods…

Abstract

Purpose

This paper aims to understand consumption values buying from informal retail markets (i.e., street vendor retailing). It also explores why consumers prefer daily necessary goods from the informal compared to the formal retail market (such as supermarkets, retail chain outlets and e-commerce).

Design/methodology/approach

Employing the qualitative research approach, this study collected data from nine respondents in two areas in Malaysia. Data were collected using semi-structured interviews and analysed using the thematic analysis technique. Only representative verbatim codes were presented under five themes of consumption value theory.

Findings

Consumers are triggered by the convenience, ease, and exclusive products (conditional value), friendly and known relationship with informal sellers, as well as the availability of some particular food items (emotional value) and lower price and freshness of groceries (functional value) while buying from informal compared to formal retail vendor.

Research limitations/implications

This study provides knowledge implications to the consumption value theory. Functional, emotional, and conditional values are the dominant components of purchase behaviour in informal compared to formal retail channels. Social values are common, whereas epistemic value is more substantial in formal retailing.

Practical implications

Findings are helpful for informal retail businesses to understand consumers' buying behaviour. Informal retail owners should ensure that commodities are fresh, highly affordable and available in the local communities. Building a friendly relationship with consumers would be a key to the success of this retail sector.

Social implications

Authorities should support informal sellers to set up mobile retail stores in residential areas. This effort would offer greater convenience to both parties in informal businesses and ensure informal sellers' financial and social well-being.

Originality/value

Despite the widespread acceptance of buying goods from informal retail vendors, research on consumption value in informal retailing is largely overlooked. Previous research primarily deals with formal market phenomena due to their size and economic contribution. Consequently, current literature lacks an understanding of why consumers prefer to buy from informal retail vendors for their daily groceries when the formal retail channel could fulfil similar needs. Using a qualitative research design, this research uncovers consumers' buying motives from informal compared to formal vendors.

Details

The Bottom Line, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0888-045X

Keywords

Article
Publication date: 19 February 2024

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.

Article
Publication date: 16 January 2023

Ibrahim Kabir, M. Muzamil Naqshbandi, Yazid Abdullahi Abubakar and Thuraya Farhana Said

The purpose of this paper is to investigate the relationship between culture and entrepreneurial orientation (EO) in informal enterprises and the moderating role of their survival…

Abstract

Purpose

The purpose of this paper is to investigate the relationship between culture and entrepreneurial orientation (EO) in informal enterprises and the moderating role of their survival intent.

Design/methodology/approach

This paper used Hofstede's national culture framework and theory of EO to develop a novel conceptual framework. The data were collected using a survey from a sample of 385 informal enterprises and analyzed using partial least square structural equation modelling.

Findings

The findings of this paper confirmed that power distance, uncertainty avoidance and normative orientation negatively affect EO in contrast with the positive effect of individualism and masculinity. Although power distance and uncertainty avoidance negatively affect an EO, the findings showed that survival intent weakens the negative nexus between these variables and strengthens the positive effect of individualism and masculinity on EO.

Research limitations/implications

Although this study examined how survival intent moderates the nexus between national culture and EO across informal enterprises in emerging economies, the data were collected in Nigeria only. This study also examined EO in aggregate and considered only one sector.

Practical implications

This study recommends that policymakers and practitioners understand the important links between firms' characteristics, culture and EO while designing training programs, policies and procedures. Doing so will support the successful implementation of entrepreneurship programs, address the prevailing entrepreneurial needs and cultural deficits across enterprises and promote the efficient allocation of resources.

Originality/value

This paper extends Hofstede's framework of national culture and EO in the context of informal enterprises in emerging economies by examining the nexus between national culture and EO, moderated by survival intent.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 16 no. 4
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 29 May 2024

Vasileios Vlachos

The purpose of this paper is to examine the empirical literature on the effects of informal competition on firm performance and provide directions for future research.

Abstract

Purpose

The purpose of this paper is to examine the empirical literature on the effects of informal competition on firm performance and provide directions for future research.

Design/methodology/approach

We search the Scopus and Web of Science databases and adopt a specific protocol to perform a systematic review of the literature. We screen 536 documents and apply three inclusion criteria for filtering.

Findings

We identify the impact of informal competition on nine types of formal firms' performance. We assess the findings according to the explanatory and response variables and the data samples of the articles reviewed. We find that five areas of focus are under-researched due to analyses of country or region-specific data, or lack of consensus because of contradicting findings.

Originality/value

To the best of our knowledge, this is the first review of the empirical literature on the effects of informal competition on the performance of formal firms.

Details

International Journal of Sociology and Social Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-333X

Keywords

Book part
Publication date: 28 May 2024

Pratip Kumar Datta and Saumya Chakrabarti

Globalization of agriculture via the evergreen revolution (which encompasses large-scale…

Abstract

Globalization of agriculture via the evergreen revolution (which encompasses large-scale production-collection-cleaning-processing-packaging-transportation-storage-distribution-sale of high-value cereals-fruits-flowers-vegetables-agrofuel-feedstock through technology-intensive global value chains) has opened the door to corporate capital involvement in agriculture. While the mainstream perspectives and international organizations have optimistically viewed this as a catalyst for inclusive growth, this article seeks to unveil the concealed hegemony of capital underlying the ostensibly beneficial façade of the evergreen revolution. It underscores the concerns regarding the immiseration of asset-poor farmers, petty nonfarm entrepreneurs and labourers resulting from the globalization of agriculture. Furthermore, it explores the implications for micro and macro food security in this context.

1 – 10 of 694