Women and men in the informal economy: a statistical picture

Abstract

Two billion workers - representing 61.2 per cent of the world's employed population - are in informal employment. Evidence shows that most people enter the informal economy not by choice, but as a consequence of a lack of opportunities in the formal economy and in the absence of other means of livelihood. Workers in the informal economy differ widely in terms of income level, age, education level, status in employment, sector, type and size of enterprise, location of workplace (rural or urban, private or public areas), degree of coverage of social and employment protection. The main challenge for the transition to the formal economy is finding the right policy mix that corresponds to the diversity of characteristics and drivers of informality. Reliable and relevant statistics are needed to better understand these complex aspects of informality and monitor progress towards formalization.