1887

Globalization and informal jobs in developing countries

A Joint Study of the International Labour Office and the Secretariat of the World Trade Organization

image of Globalization and informal jobs in developing countries

This study focuses on the relationship between trade and the growth of the informal economy in developing countries. Based on existing academic literature, complemented with new empirical research by the ILO and the WTO, the study discusses how trade reform affects different aspects of the informal economy. It also examines how high rates of informal employment diminish the scope for developing countries to translate trade openness into sustainable long-term growth.

English

.

Executive summary

Over the past decade, world trade has expanded signifi cantly. By 2007, global trade had reached more than 60 per cent of world GDP, compared with less than 30 per cent in the mid-1980s. Few would contest that increased trade has contributed to global growth and job creation. However, strong growth in the global economy has not, so far, led to a corresponding improvement in working conditions and living standards for many. Absolute poverty has declined, thanks to the economic dynamism of recent years, the efforts of private companies, migrant workers and their remittances and the international development community. Nevertheless, in many instances, labour market conditions and the quality of employment growth have not improved to the same degree. In many developing economies job creation has mainly taken place in the informal economy, where around 60 per cent of workers fi nd income opportunities. However, the informal economy is characterized by less job security, lower incomes, an absence of access to a range of social benefi ts and fewer possibilities to participate in formal education and training programmes – in short, the absence of key ingredients of decent work opportunities.

English

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error