Contributory social security and employment-based social protection for informal workers: moderating role of regulatory framework

Bighnesh Dash Mohapatra and Chandan Kumar Sahoo

International Journal of Manpower, 2025, vol. 46, issue 5, 836-852

Abstract: Purpose - This study examines the role of contributory social security and the regulatory framework extending social protection for workers in the informal economy. Design/methodology/approach - A quantitative investigation of social insurance, regulatory mechanisms and social protection is worth studying in a developing country like India. The mediating role of contributory social security and the moderating effect of the regulatory framework in the association between employment relations and employment-based social protection are examined using structural equation modelling with the help of smart PLS software. Findings - The results ascertain the growing necessity of contributory insurance for workers in the informal economy as it plays a mediating role, while a robust regulatory framework strengthens the marriage between dimensions of employment relations and social protection in the informal economy. Research limitations/implications - The study contributes to the literature on informal employment relations, informal economy and regulatory framework. The study results from the specific sector and region could raise questions about generalisability and suitability in other contexts. Practical implications - The emergence of contributory social security in developing countries offers pathways for both government and private insurance providers. Further, it has potential implications for labour adminstration, policymakers and the state by establishing the effect of a robust regulatory framework to extend social security for the excluded working class in the informal economy. Originality/value - This empirical study carried out an inclusive approach with the involvement of all employers, workers and governmental agencies is argued to be the solution for the social protection of the working poor.

Keywords: Social insurance; Employment relations; Social protection; Regulatory framework; Informal workers; Unorganised sector (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijmpps:ijm-06-2024-0383

DOI: 10.1108/IJM-06-2024-0383

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