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Micro-Determinants of Informal Employment in the Middle East and North Africa Region

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World Bank (WB)

Abstract: This note assesses the main micro?determinants of informal employment in the Middle East and North Africa (MENA) region from a human development stand point. It's main purpose is to quantify the patterns of labor informality (defined as the share of all employment with no access to social security) according to age, gender, education level, employment sector, profession, marital status, employment status, and geographic area in a selected group of countries in the region. Results indicate that the size of the public sector and the size of the agriculture sector are perhaps the main correlates of informality in the region. Countries where agricultural employment still constitutes a large share of overall employment (such as Morocco and Yemen) are associated with higher levels of overall informality. On the contrary, countries with larger public sectors and more urbanized such as Egypt, Syria, and Lebanon, display lower levels of overall informality. The existence of a large public sector, still associated with generous benefits and better employment quality, creates an important segmentation between public and private employment in many MENA countries. Informality rates are very high among youth between ages fifteen and twenty-four. After age twenty-four, informality decreases rapidly until individuals reach prime working age (forty to forty?five years). This rapid decrease in informality rates goes hand in hand with a rapid increase in public sector employment, suggesting that informal workers enter into public sector jobs as they move from youth into adulthood. Results also indicate that the average worker in the informal sector is disadvantaged versus the average worker in the formal sector, as they are uncovered against social risks and are generally employed in low-productivity/low pay jobs.
Type: Working Paper
Publications & Research
Publications & Research :: Working Paper
Link: http://hdl.handle.net/10986/26828
Subject: ACCOUNTING
AGE GROUP
AGGREGATE INCOME
AVERAGE WAGE
CIVIL SERVICE
CLERKS
DAY LABORERS
DEGREES
DISABILITY
DOMESTIC WORKERS
EARLY RETIREMENT
EARNING
ECONOMIC GROWTH
EDUCATIONAL ATTAINMENT
EDUCATIONAL LEVEL
EMPLOYMENT [ALTERNATIVE
EMPLOYMENT CREATION
EMPLOYMENT GROWTH
EMPLOYMENT PATTERNS
EMPLOYMENT RATE
EMPLOYMENT RELATIONSHIP
EMPLOYMENT SHARE
EMPLOYMENT STATUS
EQUITY ISSUES
EXCESSIVE REGULATION
EXPECTED WAGE
EXPENDITURES
FEMALE PARTICIPATION
FIRM LEVEL
FIRM SIZE
FORMAL LABOR MARKET
GENDER GROUPS
HEALTH INSURANCE
HIGHER EDUCATION
HOUSEHOLD CONSUMPTION
HOUSEHOLD INCOME
HOUSEHOLD SURVEY
HUMAN CAPITAL
HUMAN CAPITAL FORMATION
HUMAN DEVELOPMENT
HUMAN RESOURCE
HUMAN RESOURCE DEVELOPMENT
INCOME SECURITY
INFORMAL ECONOMY
INFORMAL EMPLOYMENT
INFORMAL LABOR MARKETS
INFORMAL SECTOR
INFORMAL SECTOR WORKERS
INFORMATION TECHNOLOGY
INNOVATION
INTERNATIONAL LABOUR CONFERENCE
KNOWLEDGE GAP
LABOR CONTRACT
LABOR FORCE
LABOR FORCE PARTICIPATION
LABOR LEGISLATION
LABOR MARKET
LABOR MARKET EXPERIENCES
LABOR MARKET INDICATORS
LABOR MARKET OUTCOMES
LABOR MARKET REFORMS
LABOR SUPPLY
LABOUR
LEVELS OF EDUCATION
LITERATURE
LIVING CONDITIONS
LOW INVOLVEMENT
MALE WORKER
MATERNITY LEAVE
MORTALITY
OCCUPATION
POST SECONDARY EDUCATION
PRIMARY EDUCATION
PRIMARY SCHOOL
PRIME AGE
PRIVATE EMPLOYMENT
PRIVATE FIRMS
PRIVATE SECTOR
PRIVATE SECTOR JOBS
PRIVATE SECTOR WORKERS
PROBIT REGRESSION
PRODUCTIVITY
PUBLIC EMPLOYMENT
PUBLIC SECTOR EMPLOYMENT
PUBLIC SECTOR JOBS
RESEARCHERS
RETIREMENT
RURAL EMPLOYMENT
RURAL WORKERS
SCHOOLS
SELF EMPLOYED
SELF EMPLOYED WORKERS
SELF EMPLOYMENT
SOCIAL DEVELOPMENT
SOCIAL PROTECTION
SOCIAL SECURITY
SPORTS
TEMPORARY EMPLOYMENT
TEMPORARY WORKS
TERTIARY EDUCATION
TERTIARY SECTOR
TOTAL EMPLOYMENT
UNEMPLOYED
UNEMPLOYED POPULATION
UNEMPLOYMENT
UNEMPLOYMENT RATE
UNIVERSITY EDUCATION
UNIVERSITY GRADUATES
UNPAID FAMILY WORKERS
UNPAID WORKERS
URBAN EMPLOYMENT
URBAN WORKERS
WAGE DETERMINATION
WAGE DISTRIBUTION
WAGE RATES
WORKER
WORKER PRODUCTIVITY
WORKING
WORKING CONDITION
YOUNGER WORKERS




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