Intr Intr oduc tion oduc tion Infor mality is only a pr oble m - PDF document

Intr Intr oduc tion oduc tion Infor mality is only a pr oble m in de ve loping • c ountr ie s T T h he c ontr t ib ti ibution of the infor f th i f mal se c tor l t t th to the • national pr oduc tion is insignific ant Infor Infor mality is diffic ult to me asur mality is diffic ult to me asur e e • • Infor mality has two c ompone nts • T T he infor he infor mal se c tor mal se c tor and infor and infor mal e mployme nt ar mal e mployme nt ar e e • the same T he infor mal se c tor r e fe r s to e c onomic units whose • obje c tive is to c r e ate jobs and inc ome r athe r than maximise pr ofits I nte rnatio nal L abo ur Offic e 1 De partme nt o f Statistic s Intr Intr oduc tion oduc tion All infor mal se c tor ac tivitie s ar e unde r gr ound • ac tivitie s T T he De lhi Gr h D lhi G oup is a gr i oup of e xpe r f ts fr t f om India I di • Infor mal e mployme nt r e late s to pe r sons in jobs that • ar ar e not pr e not pr ote c te d by labour ote c te d by labour laws laws Pe r sons who ar e c ove r e d by soc ial se c ur ity • sc he me s c an be in infor sc he me s c an be in infor mal e mployme nt mal e mployme nt Infor mal e mployme nt c an only happe n in the • infor mal se c tor

On de finitions On de finitions An infor mal se c tor e nte r pr ise is a pr oduc tion unit • ope r ate d in the owne r ’s home All All small e nte r ll t pr ise s ar i e in the infor i th i f mal se c tor l t • A pe r son is in the infor mal se c tor if he / she has a • pr pr e c ar e c ar ious job ious job Only e mploye r s ar e e ntr e pr e ne ur s • A pe r A pe r son c an wor son c an wor k in the for k in the for mal se c tor mal se c tor and in the and in the • infor mal se c tor On de finitions On de finitions Infor mal se c tor e nte r pr ise s must me e t whic h of • the se c r ite r ia Ar Ar e house hold e nte r e house hold e nte r pr pr ise s (pr ise s (pr ivate ly owne d by one or ivate ly owne d by one or • mor e pe r sons) At le ast some of the pr oduc t is sold in the mar ke t • Ar e not agr ic ultur al ac tivitie s • Should not ke e p full ac c ounts • Small e mployme nt size Small e mployme nt size • • Ar e not r e giste r e d • E mploye e s ar e not r e giste r e d • Issue for r e fle c tion: In your c ountr y, whic h c r ite r ia would you use to de fine the infor mal se c tor ? I nte rnatio nal L abo ur Offic e 4 De partme nt o f Statistic s

On de finitions On de finitions T h i f he infor mal se c tor l t i inc lude s/ e xc lude s: l d / l d • Units e xc lusive ly e ngage d in pr oduc tion for own final use • Agr ic ultur al ac tivitie s • R ur al ar e as • Pr ofe ssionals and te c hnic ians • Outwor ke r s • Paid dome stic e mploye e s • Infor mal e mployme nt c an only oc c ur in for mal se c tor • e nte r e nte r pr pr ise s ise s Contr ibuting family wor ke r s ar e in infor mal e mployme nt • if the y do not have r ight to vac ations Infor I f mal se c tor l t e ntr t e pr e ne ur s ar e in for i f mal e mployme nt l l t • It is not possible to wor k in the infor mal se c tor and have • for mal e mployme nt p y I nte rnatio nal L abo ur Offic e 5 De partme nt o f Statistic s On de finitions On de finitions E mploye e s in infor mal jobs must me e t whic h of the se c r ite r ia: Ar Ar e not c ove r e not c ove r e d by soc ial se c ur e d by soc ial se c ur ity ity Ar e not e ntitle d to annual le ave , sic k le ave , mate r nity le ave Ar e at r isk of be ing dismisse d without notic e g Ar e har asse d by the boss Do not have a wr itte n c ontr ac t Have a c asual job Have a c asual job Pay inc ome taxe s Issue for Issue for r r e fle c tion: e fle c tion: In your c ountr y, whic h c r ite r ia would you use to de fine e mploye e s with infor to de fine e mploye e s with infor mal jobs? mal jobs? I nte rnatio nal L abo ur Offic e 6 De partme nt o f Statistic s

On me asur On me asur e me nt me thods e me nt me thods Infor mality is be tte r me asur e d with labour for c e • sur ve ys It i b It is be tte r tt t to use dir di e c t me thods than indir t th d th i di e c t t • me thods T T he most impor he most impor tant statistic s ar tant statistic s ar e about the numbe r e about the numbe r • • of wor ke r s in the infor mal se c tor Statistic s on infor S a s c s o o mality should be me asur a y s ou d be e asu e d o e d on a a • r e gular basis E stablishme nt sur ve ys ar e not a good sour c e for • infor mality statistic s Indir e c t me asur e s should ne ve r be use d • I nte rnatio nal L abo ur Offic e 7 De partme nt o f Statistic s On labour On labour for for c e sur c e sur ve ys ve ys T o me asur e infor mality with L F S ... • A standar d sample de sign is good e nough • T T he que stionnair he que stionnair e de sign is ve r e de sign is ve r y impor y impor tant tant • • One simple que stion is r e quir e d • T r aining to inte r vie we r s is c r uc ial • Only the main job ne e ds to be c ove r e d • All ac tivitie s, inc luding agr ic ultur e , should be c ove r e d • Can pr Can pr oduc e statistic s on e mployme nt pr oduc e statistic s on e mployme nt, pr oduc tion and oduc tion and • • numbe r of infor mal units T he “two tr ac k appr oac h” is whe n the r e is mor e • than one de finition of infor mal se c tor or infor mal e mployme nt in the c ountr y I nte rnatio nal L abo ur Offic e 8 De partme nt o f Statistic s

On labour for c e sur ve ys y Issue s for r e fle c tion Did you c ar r y out a labour for c e sur ve y in your c ountr y? Did it me asur e infor mality? Was the sample se le c te d c onside r Was the sample se le c te d c onside r ing de nsity of infor ing de nsity of infor mal mal wor ke r s? How many que stions did you use to ide ntify the infor mal se c tor ? How many que stions did you use to ide ntify infor mal e mployme nt? e mployme nt? Did you use the same que stions for e mploye e s and se lf e mploye d wor ke r s? Did you c ove r Did the main job only or th i j b l l also se c ondar d y jobs? j b ? Did you inc lude agr ic ultur al ac tivitie s? R ur al ar e as? Did you inc lude paid dome stic wor y p ke r s? I nte rnatio nal L abo ur Offic e 9 De partme nt o f Statistic s On e stablishme nt sur On e stablishme nt sur ve ys ve ys L ist-base d e stablishme nt sur ve ys c an c ove r • infor mal se c tor units E t bli h E stablishme nt sur t ve ys c an pr oduc e statistic s on: d t ti ti • E mployme nt in the infor mal se c tor • Infor Infor mal e mployme nt mal e mployme nt • Value adde d of the infor mal se c tor • Numbe r of infor mal se c tor units • Whe n the obje c tive is to c ove r all e c onomic units, • for mal and infor mal, dual fr ame s should be use d An e stablishme nt sur An e stablishme nt sur ve y that c ove r ve y that c ove r s the infor s the infor mal mal • se c tor is base d on a sample fr ame that c ove r s only fixe d e c onomic units fixe d e c onomic units I nte rnatio nal L abo ur Offic e 10 De partme nt o f Statistic s

On e stablishme nt sur On e stablishme nt sur ve ys ve ys A sample fr ame that c ove r s all e c onomic units is base d on an e stablishme nt c e nsus An ar A e a-base d sample de sign se le c ts e c onomic units b d l d i l t i it dir e c tly fr om the sample fr ame T T he que stionnair he que stionnair e is c r e is c r uc ial to c olle c ting good data uc ial to c olle c ting good data on infor mal se c tor units Many que stions ar e ne e de d on all the e le me nts ne e de d for c alc ulating the GVA Ve r y de taile d que stions ar e e sse ntial to be sur e that the data ar ar e valid e valid We should ask for infor mation on sale s and pr oduc tion about a whole ye ar in or de r to be use ful for national ac c ounts We c an se nd the que stionnair W d th ti i e by mail for b il f e ntr t e pr e ne ur s to fill t fill it it by the mse lve s I nte rnatio nal L abo ur Offic e 11 De partme nt o f Statistic s On e stablishme nt sur ve ys y Issue s for r e fle c tion Have you c ar r ie d out an e stablishme nt sur ve y in your c ountr y? Was the sample base d on a list base d fr Was the sample base d on a list-base d fr ame or ame or an ar an ar e a e a- fr ame ? Did it c ove r all the e c onomic units? What is the c ove r age of e c onomic units? How long was the que stionnair e ? How de taile d we r e the que stions? What was the r que stions? What was the r e fe r e fe r e nc e pe r e nc e pe r iod? iod? Did you se nd the que stionnair e s by mail or did pe r sonal inte r vie ws? How fr H f e que ntly was the sur tl th ve y c ar r i d ie d out? t? Have you c ar r ie d out an E stablishme nt Ce nsus? Was it done at the same time as the Population Ce nsus? What was the c ove r age of e c onomic units? I nte rnatio nal L abo ur Offic e 12 De partme nt o f Statistic s