Employment choice and mobility in multi‐sector labour markets: Theoretical model and evidence from Ghana

Abstract

Using detailed household survey data on male workers in Ghana, the author tests a theoretical model incorporating capital market failure and labour market segmentation into sectors of (largely formal) wage employment and (largely informal) self‐employment and family enterprise employment, in which credit‐constrained individuals draw self‐employment capital from family assets. The data show very low rates of mobility across the three sectors, the highest mobility being observed among family enterprise workers, and the lowest, among the self‐employed. The findings show no robust evidence that wage earnings ease liquidity constraints, while suggesting that both liquidity and skill transferability constraints are important for mobility.

Explaining individual- and country-level variations in unregistered employment using a multi-level model: evidence from 35 Eurasian countries

“…Until now, some limited evidence exists to support this marginalization thesis when studying the informal economy. Studies have shown informal employment to be concentrated among those more likely to be excluded from the formal labour market, including the unemployed (Brill 2011;Slavnic 2010;Taiwo 2013) and women (ILO 2013;Leonard 1994;Stănculescu 2004). However, other studies reveal that the unemployed are not more likely to participate (Williams 2001), and that men are more likely to participate (Lemieux, Fortin, and Frechette 1994;McInnis-Dittrich 1995).…”

Informalisation du travail rémunéré et risques sociaux pour les travailleurs : le rôle des États-providence

“…Certains auteurs soulignent également l'existence d'un lien entre le secteur informel et la corruption ainsi que le crime organisé (Ponsaers, Shapland et Williams, 2008). Un discours différent s'est développé en économie politique (voir Williams, 2015) qui considère le travail informel plutôt comme une conséquence d'un manque d'intervention de l'État dans le marché du travail, des processus de dérégulation, de privatisation et de libéralisation (Castells et Portes, 1989 ;Sassen, 1996 ;Slavnic, 2010 ;Taiwo, 2013). Dans cette perspective, l'emploi informel est caractérisé par une forme de travail à bas salaire, sans protection sociale, fourni principalement par des couches marginalisées de la population qui y recourent comme stratégie de survie.…”

Explaining the Prevalence of the Informal Economy in the Baltics: an Institutional Asymmetry Perspective

“…Third and finally, 'political economy' theory, in stark contrast to neo-liberal theory, claims that the informal economy directly results from inadequate levels of state intervention in work and welfare arrangements, which leaves workers less than fully safeguarded and thus dependent on the informal economy as a survival strategy in the absence of other means of livelihood and support (Davis, 2006;Gallin, 2001;ILO, 2014;Slavnic, 2010;Taiwo, 2013). As such, the informal economy is to be tackled by increasing expenditure on labour market interventions to protect vulnerable groups and increasing social protection expenditure.…”

“…Numerous studies have revealed how the prevalence of the informal economy varies not only cross-nationally (ILO, 2012;Schneider and Williams, 2013) but also locally and regionally (Kesteloot and Meert, 1999) and by employment status (Slavnic, 2010;Taiwo, 2013), age (Pedersen, 2003), gender (ILO, 2013 and income level (Barbour and Llanes, 2013;Williams, 2009). The outcome has been a more contextualised understanding which recognises how the informal economy can be large and growing in some populations, but smaller and declining in others (Pfau-Effinger, 2009;Williams and Horodnic, 2015).…”