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Welfare and the depth of informality: Evidence from five African countries

Eva-Maria Egger, Cecilia Poggi and Hector Gutierrez Rufrancos

No wp-2021-25, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This study explores the relationship between household poverty and depth of informality by proposing a new measure of informality at the household level. It is defined as the share of activities (hours worked or income earned) without social insurance for wage workers in the household. We apply cross-sectional regressions to five urban sub-Saharan African countries, showing that a household head informality dummy obscures a non-linear relationship between the depth of household informality and welfare outcomes.

Keywords: Informality; Measurement; Poverty; Social protection; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-dev, nep-ias and nep-iue
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