1. Derived Variables and Contribution of the Informal Economy G
Derived Variables and Contribution of the Informal Economy G.Raveendran

2. Important National Issues
Does informal sector/informal workers constitute a significant share of workers in the country?
Do these workers make significant contribution to GDP?
Are these workers concentrated in any specific economic activity?
Do they belong to any specific categories of workers?
Are they located in specific geographical areas?
Are they concentrated among specific social groups?
Is there any gender differentials in informal sector/informal workers?
What is the educational and poverty profile of informal sector/informal workers?

3. Statistical Indicators
A number of statistical indicators are used by the countries to find answers to the above questions.
A few of the common indicators are described below:
Share of informal sector workers
=(Number of informal sector workers/Total workers)*100
Share of informal workers
=(Number of informal workers/Total workers)*100

4. Statistical Indicators (Contd)
Share of informal economy workers
=(Number of informal economy workers/Total workers)*100
GDP share of informal sector
=(GDP contribution of informal sector/Total GDP)*100
GDP share of informal workers
=(GDP contribution of informal workers/Total GDP)*100
GDP share of informal economy
=(GDP contribution of informal economy/Total GDP)*100
[These indicators can be computed for specific economic activity/sector]

5. Statistical Indicators (Contd)
Gender differential
=(Informal women workers/Total women workers)/
(Informal men workers/Total men workers)*100
Incidence of informality by social group
=(Informal workers of a specific social group/Total workers of that social group)*100
Incidence of informality by education
=(Informal workers of specific educational level/Total workers of that educational level)*100

6. ESTIMATION OF GROSS VALUE ADDED
Total receipts
Total operating expenses
Distributive expenses, if any
Excise duty
Sales tax
Non-deductible vat
Outward freight and transport charges
Commission to selling agents, etc.
Gross value added= Total receipts - Total operating expenses - Distributive expenses

7. Total Receipts Value of goods manufactured
Value goods sold in the same condition as purchased
Changes in the stock of semi-finished products
Receipts from services provided to others including commission charges
Value of own construction of building, furniture and fixtures
Rental received from fixed assets
Value of consumption of goods/services produced
Funding/donations received excluding capital grants

8. TOTAL OPERATING EXPENSES
Raw materials consumed
Purchase value of goods sold in the same condition
Electricity charges
Fuel and lubricant
Raw materials for own construction
Rent payable on machinery and building
Contract and commission expenses
Travelling, freight and cartage expenses
Communication expenses

9. TOTAL OPERATING EXPENSES (Contd)
Purchase of consumable stores, packing materials, etc.
Purchase value of goods sold in the same condition
Paper, printing and stationery
Service charges for work done by other establishments
License fee, cess charged by local bodies, etc.
Minor repair and maintenance of building, furniture, machinery, etc.
Other expenses, if any.

10. SCALING UP
Enterprise surveys often underestimates total employment in specific industries due to several reasons including:
Invisible enterprises
Non-reporting of enterprises by households
Under reporting of employment, etc.
Scaling up is done by multiplying the estimates of jobs derived from labour force surveys with the average value added per worker derived from enterprise surveys

11. THANK YOU
WIEGO