WOMEN and MEN in the INFORMAL ECONOMY : a Statistical Picture

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WOMEN and MEN in the INFORMAL ECONOMY : a Statistical Picture WOMEN AND MEN IN THE INFORMAL ECONOMY : A statistical picture EMPLOYMENT SECTOR INTERNATIONAL LABOUR OFFICE GENEVA Copyright © International Labour Organization 2002 First published 2002 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Conve n t i o n . Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to the Publications Bureau (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland. The International Labour Office welcomes such applications. Libraries, institutions and other users registered in the United Kingdom with the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP [Fax: (+44) (0)20 7631 5500; email: [email protected]], in the United States with the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923 [Fa x: (+1) (978) 750 4470; email: [email protected]] or in other countries with associated Reproduction Rights Organizations, may make photocopies in accordance with the licences issued to them for this purpose. ISBN 92-2-113103-3 The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are avai l a b l e free of charge from the above address. Printed in France BRI/SAD PREFACE The purpose of this report is to provide a statistical H a r vard Unive r s i t y, and Joann Vanek, recently picture, using the available data, of the informal retired from the United Nations Statistics Divi s i o n . economy worldwide. The statistics and indicators Jacques Charmes, University of Ve r s a i l l e s , presented in this book are designed to give a wide prepared the international data on employment in audience of users a better understanding of the and contribution of the informal economy. size, components and characteristics of the M a rgarita Guerrero, United Nations Statistical informal economy. Such information is essential Institute for Asia and the Pacific, provided statis- in formulating policies and programmes at national tical advice in all aspects of the project including and international levels to promote decent condi- table design and preparation of the final tables. tions of work as well as contribute to poverty erad- Françoise Carré, Radcliffe Institute for Advanced ication. S t u d y, and Joaquín Herranz, Massachusetts The statistics in the report were analysed and Institute of Te c h n o l o g y, prepared the report on presented according to a new conceptual frame- non-standard work in developed countries. T h e work for the informal economy proposed in the country case studies were prepared by Debbie report on Decent Work and the Informal Economy B u d l e n d e r, the Community A g e n cy for Social for general discussion at the 90th Session of the E n q u i r y, and Peter Buwembo and Nozipho International Labour Conference, Geneva June Shabala, Statistics South Africa (South A f r i c a ); 2002. The resulting analysis shows the feasibility Rodrigo Negrete, National Institute of Statistics, and usefulness of the framework as a basis for the G e o g r a p hy and Information and Mercedes d evelopment of statistics and for policy analysis. Pedrero, National Autonomous University of N o t a b l y, in the three countries featured as case M exico (Mex i c o ) ; and Jeemol Unni, Gujarat studies, the main elements in the framework were Institute of Development Research (India). already being implemented in their most recent Technical advice was also provided by Richard s u r veys. How eve r, the report also clearly show s A n ke r, Ralf Hussmanns, Eivind Hoffmann and that much still needs to be done to develop and Adriana Mata of the ILO and Grace Bediako of the harmonise statistics on all components of employ- United Nations Statistics Division. Production ment in the informal economy. assistance was provided by Joanna Jackson, ILO, Women and Men in the Informal Economy was and Marais Canali, Harvard Unive r s i t y; and written by a team of consultants working with the a d m i n i s t r a t ive assistance was provided by Task Force and team members of the International Sasithorn Santiwongsakul, ILO. Labour Office responsible for preparation of the This report was prepared under the supervision report on Decent Work and the Informal Economy. of Lin Lean Lim and funded by the Gender The co-authors of the report and co-directors of the Promotion Programme (GENPROM). project that produced it were Martha Chen, TABLE OF CONTENTS List of Tables and Boxes . 6 Main Findings . 7 The Informal Economy . 9 Informal workers . 9 The Informal Sector . 9 The Informal Economy . 11 Why Improve Statistics on the Informal Economy? . 13 User-Producer Collaboration to Improve Statistics on the Informal Economy . 14 Statistics on the Informal Economy . 17 Introduction . 17 Developing Countries . 17 Informal Employment . 17 Self-employment . 22 Informal Sector and Gross Domestic Product . 24 The Informal Economy in Developed Countries . 26 Part-time Work . 27 Temporary Employment . 28 Self-employment . 29 Illustrative Case Studies . 33 Country Case studies . 33 India . 33 Mexico . 36 South Africa . 40 Sub-Group Case Studies . 43 Home-Based Work . 42 Street Vendors . 49 Improved Statistics for Policy Making . 57 Why are statistics crucial ? . 57 Objectives for Future Work . 58 Plan of Action . 58 Annexes . 60 LIST OF TABLES AND BOXES Chapter 1 Box: 1993 ICLS definition of the informal sector . 11 Box: A conceptual framework: the informal economy . 13 Chapter 2 Developing countries . 17 Box: Estimating informal employment . 18 Box: Estimating informal sector contribution to GDP . 25 Table 2.1: Informal employment in non-agricultural employment, by sex 1994/2000 . 19 Table 2.2: Wage and self-employment in non-agricultural informal employment, by sex 1994/2000 . 20 Table 2.3: Components of informal employment as percentage of non-agricultural employment, 1997/2000 . 21 Table 2.4: Women’s share of employment in the informal economy, 1997/2000 . 22 Table 2.5: Self-employment as percentage of non-agricultural employment . 22 Table 2.6: Share of women and men in non-agricultural self-employment . 23 Table 2.7: Percentage distribution of non-agricultural self-employment by sector, 1990/2000 . 23 Table 2.8: Contribution of informal sector to GDP in selected developing countries . 24 Table 2.9: Contribution of women and men in non-agricultural informal sector employment to GDP in selected developing countries . 25 Developed countries . 26 Box Measuring employment in the informal economy in developed countries . 26 Table 2.10: Part-time employment by sex, 1990/1998 . 28 Chapter 3 India . 33 Box: Estimating employment in the informal economy in India . 35 Table 3.1: Composition of employment in the informal economy in India, 2000 . 34 Mexico . 36 Box: Estimating informal employment and contribution of informal economy to GDP . 37 Table 3.2: Informal economy in Mexico, 1998: Employment and contribution to GDP . 37 Table 3.3: Composition of employment in the informal economy: Mexico . 38 South Africa . 40 Box: The formal and informal sectors as parts of a continuum . 41 Box: Domestic workers . 42 Table 3.4: Composition of employment in the informal economy in South Africa, 2000 . 40 Home-based workers . 43 Box: Self-employed, homeworkers, and employees . 45 Box: Homeworkers in global value chains . 46 Box: Recent shifts in homework in Chile . 47 Box: Working at home in India . 48 Table 3.5: Home-based workers in fourteen developing countries: Number, share of non-agricultural employment, proportion women . 47 Street vendors . 49 Box: Typology of street vendors . ..
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