Labor Informality and Market Segmentation in Senegal

Understanding the selection of workers into informality is a policy priority to design programs to increase formalization across Sub-Saharan Africa, where nine out of ten workers are informal. This paper estimates a model of self-selection with ent...

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Main Authors:	Rodríguez-Castelán, Carlos, Vazquez, Emmanuel
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2022
Subjects:	EQUITY LABOR MARKET LABOR INFORMALITY LABOR SEGMENTATION INFORMAL EMPLOYMENT INFORMAL EMPLOYMENT PREFERENCE INCOME VULNERABILITY UNEDUCATED WORKERS
Online Access:	http://documents.worldbank.org/curated/en/099437007262219892/IDU0acf8d436078b904faa094620e585bc791ecd http://hdl.handle.net/10986/37775

id	okr-10986-37775
recordtype	oai_dc
spelling	okr-10986-377752022-07-28T05:10:41Z Labor Informality and Market Segmentation in Senegal Rodríguez-Castelán, Carlos Vazquez, Emmanuel EQUITY LABOR MARKET LABOR INFORMALITY LABOR SEGMENTATION INFORMAL EMPLOYMENT INFORMAL EMPLOYMENT PREFERENCE INCOME VULNERABILITY UNEDUCATED WORKERS Understanding the selection of workers into informality is a policy priority to design programs to increase formalization across Sub-Saharan Africa, where nine out of ten workers are informal. This paper estimates a model of self-selection with entry barriers into the formal sector to identify the extent of involuntary informality in Senegal, a representative country in terms of levels of informality in West Africa and with one of the most rigid labor markets in the world. The results show that the desire of being formal is greater for workers with formal education, married, and a lower proportion of children younger than age five living in the household. The individual's preference for the formal sector also grows with age at a decreasing rate. The results also show that labor informality is mainly a voluntary phenomenon, with 30 percent of informal workers being involuntarily displaced into the informal sector. The results are robust to different model specifications, definitions of labor informality, and heterogeneous groups of workers. 2022-07-27T15:55:32Z 2022-07-27T15:55:32Z 2022-07 Working Paper http://documents.worldbank.org/curated/en/099437007262219892/IDU0acf8d436078b904faa094620e585bc791ecd http://hdl.handle.net/10986/37775 English en_US Policy Research Working Papers;10129 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research Africa Western and Central (AFW) Africa Senegal
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	EQUITY LABOR MARKET LABOR INFORMALITY LABOR SEGMENTATION INFORMAL EMPLOYMENT INFORMAL EMPLOYMENT PREFERENCE INCOME VULNERABILITY UNEDUCATED WORKERS
spellingShingle	EQUITY LABOR MARKET LABOR INFORMALITY LABOR SEGMENTATION INFORMAL EMPLOYMENT INFORMAL EMPLOYMENT PREFERENCE INCOME VULNERABILITY UNEDUCATED WORKERS Rodríguez-Castelán, Carlos Vazquez, Emmanuel Labor Informality and Market Segmentation in Senegal
geographic_facet	Africa Western and Central (AFW) Africa Senegal
relation	Policy Research Working Papers;10129
description	Understanding the selection of workers into informality is a policy priority to design programs to increase formalization across Sub-Saharan Africa, where nine out of ten workers are informal. This paper estimates a model of self-selection with entry barriers into the formal sector to identify the extent of involuntary informality in Senegal, a representative country in terms of levels of informality in West Africa and with one of the most rigid labor markets in the world. The results show that the desire of being formal is greater for workers with formal education, married, and a lower proportion of children younger than age five living in the household. The individual's preference for the formal sector also grows with age at a decreasing rate. The results also show that labor informality is mainly a voluntary phenomenon, with 30 percent of informal workers being involuntarily displaced into the informal sector. The results are robust to different model specifications, definitions of labor informality, and heterogeneous groups of workers.
format	Working Paper
author	Rodríguez-Castelán, Carlos Vazquez, Emmanuel
author_facet	Rodríguez-Castelán, Carlos Vazquez, Emmanuel
author_sort	Rodríguez-Castelán, Carlos
title	Labor Informality and Market Segmentation in Senegal
title_short	Labor Informality and Market Segmentation in Senegal
title_full	Labor Informality and Market Segmentation in Senegal
title_fullStr	Labor Informality and Market Segmentation in Senegal
title_full_unstemmed	Labor Informality and Market Segmentation in Senegal
title_sort	labor informality and market segmentation in senegal
publisher	World Bank, Washington, DC
publishDate	2022
url	http://documents.worldbank.org/curated/en/099437007262219892/IDU0acf8d436078b904faa094620e585bc791ecd http://hdl.handle.net/10986/37775
_version_	1764487870495588352

Labor Informality and Market Segmentation in Senegal

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