Perspectives du passage du secteur informel au secteur formel au Benin: cout de la legalite

Attin Sj.

ILO Working Papers from International Labour Organization

Abstract: The informal sector is often seen as an unfair competition to the modern sector, and some call for a more stringent application of the legislation in the informal sector. In 1989, a survey of 92 informal sector enterprises in Cotonou was organised to investigate the nature and the extent of violation of the legislation by the informal sector. By comparing the legislation with the practices in the sector, it is shown that firms do not pay taxes, neither is labour paid according to the official salary scales. However, abiding by the laws and becoming formal would mean extra costs for the production units, lower incomes for their owners or higher prices for the consumer. The informal sector is shown to be beneficial for households, the state and its owner operators, despite the fact that government does not collect taxes from them and that the conditions of work could be improved. As the informal sector enterprises have no access to the benefits of the "investment code" and they are precluded from official submissions and credit facilities, it is proposed that these legislative measures be revised.

Keywords: informal economy; microenterprise; legal aspect; survey.; production cost; labour cost; statistical table; économie informelle; microentreprise; aspect juridique; enquête; coût de production; coût de la main-d'oeuvre; tableau statistique; economía informal; microempresa; aspecto jurídico; encuesta; costo de producción; costo de la mano de obra; cuadros estadísticos (search for similar items in EconPapers)
Pages: 46 P. pages
Date: 1990
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Published in Programme Mondial de l'Emploi. WEP 2-19, Urbanisation, secteur informel et emploi

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