Assessing the formalization of informality in MENA countries: Issues, methods, and impact

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2024

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Mondes en développement

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Cairn.info

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Cairn

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Cairn

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Job mobility Mobility, Occupational

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Philippe Adair et al., « Assessing the formalization of informality in MENA countries: Issues, methods, and impact », Mondes en développement, ID : 10670/1.bc143c...

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We address the taxonomy, statistical coverage, stylized facts, and drivers of the informal economy in three MENA countries. We use transition matrices and multinomial logits on panel data to analyze occupational mobility according to previous job status, age group, and gender. Persistent segmentation and low occupational mobility suggest that informal employment does not result from a choice (labor supply side) but from structural constraints (demand side). We assess formalization policies based on incentives and penalties, and differentiating between companies and workers. Their impact is revealed to be modest.

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