Enhancing Workers’ Protection in Jordan

Friederike Uta Rother, Carole Chartouni, Javier Sanchez-Reaza, Gustavo Nicolas Paez Salamanca and Belal N. Y Fallah

No 170803, Social Protection Discussion Papers and Notes from The World Bank

Abstract: This paper exploits a rich database to provide comprehensive profiling of informality in Jordan,including who informal workers are, their characteristics, and where they work, as well as providing policyrecommendations to address informality. The structural framework developed through the comprehensive profiling isfollowed by an analysis of why workers are informal, using inferential multivariate analysis. Statistical techniques(that is, cluster analysis) are used to group workers by similar characteristics (including education, gender,income, and form of employment) to allow policy makers to pinpoint specific policy tools that can target each group.The paper offers long term policy solutions to address informality, including fostering competition to boostproductivity and providing a level playing field. It also proposes short, and medium-term policy options to protectworkers against shocks until more productive jobs are created, for instance through the provision of short-termbenefits through defined contribution schemes. Heterogeneity is addressed by tailoring policy instruments to clusters of workers.

Date: 2022-03-31
New Economics Papers: this item is included in nep-ara and nep-iue
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