1. Informality and social protection
Preliminary findings from the 2015 Living Conditions and Monitoring Survey
Dr Caroline Tassot
OECD Development Centre

2. Introduction
High levels of informality are an important challenge for social protection systems
This work aims at supporting policy choices in SHI and other social protection reforms and developments, in particularly regarding extension of (contributory) mechanisms to the informal sector workers
Expansion of social protection requires better understanding of informal worker characteristics and needs, in order to answer questions such as could informal workers contribute to health insurance? Who would need to be subsidized?

3. Defining informal work
ILO guidelines
Informal employment = all informal jobs, whether carried out in
formal sector entreprises
informal sector enterprises
households

4. Informal employment definition
Status in employment
Employers; own-account workers; members of cooperatives
Employees
Contributing family workers
Yes
Social security
(employment related social security) No
DK/NA
Economic unit (enterprises)
Informal sector
Formal sector
Households
No production for sales or batter
Paid annual leave
Yes No
Paid sick leave
Yes
DK/NA or No
Formal employment
Informal employment

5. Informal employment in developing countries
. Source: ILO calculations based on national household surveys

6. Data for the study
Living Conditions Monitoring Survey 2015 and Labour Force Survey
Representative of Zambian population (at national, provincial, and urban/rural levels)

7. Population
Employed
(43%, including wage employed, farming, fishing, forestry, piece work, unpaid family workers)
Employees (27.6%)
60%
informal
Employers
(0.6%)
94.4% informal
Own-account workers
(64%)
99%
Unpaid family workers (7.4%)
100%
Not working (students, retirees, unemployed, homemakers)

8. 77% of urban workers are informal 89% of all workers are informal
97% of rural workers are informal

9. Location of informal workers

10. Location of informal workers

11. Size of the bubble represents number of informal jobs in 2014 in the industry

12. Slides excluded works in agriculture and activities of households as employer
Rural
Urban

13. Informal workers demographics

14. Informality & education

15. Informality & income

16. Informality & poverty

17. Informality & poverty

18. Informality & poverty Extremely poor Moderately poor Non poor
Number of workers

19. Degree of informality

20. Informality & health

21. Informality & health

22. Identifying profiles of informal workers

23. Conclusion These are preliminary results
Current results already outline interesting differences between informal workers
Next steps include: a more detailed analysis of healthcare demand, use, spending, willingness to pay
Final results by Q1 2018

24. Back up slides

25. Employees (27.6%) of which 60% informal
Population
Non workers
Workers
Employees (27.6%) of which 60% informal
No social security
Informal
With social security
Formal
Unclear SS
Paid annual leave
No paid annual leave
Employers (0.6%) of which 94.4% informal /
Own-account workers (64)%), of which 99% informal
Government / NGO / IO
Households
More than 5 employees
Less than 5 employees
Private
Less than 5 e,[;puees
Unpaid family workers
(7.4%) of which 100% informal

26. Informal sector Key variables Employment in the formal sector
Institutional sector
Government, Corporations, NGO, IO etc
Private household
Farm or private business (unincorporated)
Other, DK, NA, Not asked
Destination
Only for own final use
At least partly for the market
Other, DK, NA, Not asked
Bookkeeping
Keeps accounts for reporting to the Government
Does not keep accounts
Other, DK, NA, Not asked
Registration
Registered at national level
Not registered at national level
Other, DK, NA, Not asked
Status in employment
Employees
Other
Social security contribution or tax on wages
Yes No
Place of work
Other
Non-fixed premises
Households
(producing exclusively for own final use)
Q6. Size
6 or more, other
5 or less
Employment in the formal sector
Employment in the informal sector