Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229370
Authors: 
Folawewo, Abiodun Oluwole
Orija, Olusegun A.
Year of Publication: 
2020
Series/Report no.: 
WIDER Working Paper No. 2020/146
Abstract: 
This study evaluates the effects of the informal sector on Nigerian workers' livelihoods and analyses workers' transitions within the informal sector and between informal and formal employment. A binary logit model is applied to General Household Survey panel data for the periods 2010/11, 2012/13, and 2015/16. We find that informal employment has the greatest impact on workers' livelihoods in terms of earnings. Results also indicate the existence of a high level of dynamic transition of workers within different types of informal employment. Our results further indicate that both self-employed and wage employed informal workers are likely to transit to formal employment, the likelihood being higher for the upper-tier informal wage employed. While informally employed workers have a very high chance of transiting to formal employment, formal workers have a much lower chance of transiting to informal employment. The policy implication of our results is the need to create better working conditions for informal workers.
Subjects: 
binary logistic regression
employment
formal
informal
Nigeria
transition
JEL: 
E26
J43
J46
Persistent Identifier of the first edition: 
ISBN: 
978-92-9256-903-7
Document Type: 
Working Paper

Files in This Item:
File
Size
538.21 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.