Transcript Assessment of Statistical Quality of Real Sector Data

Session Number: Session 5a (Parallel) “Measuring the
Informal Economy in Developing Countries”
September 24, 16:00-17:30
Sector and Informal Employment in Brazil
João Hallak Neto; Katia Namir; Luciene Rodrigues Kozovits,
Instituto Brasileiro de Geograhia e Estatisgticas – IBGE,
Rio de Janeiro
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Scope and Objective
• Objective of the paper:
– To discuss the concepts of value added, employment in
the context of informal sector and informal employment
• Organisation of production units, vs. characteristics
of employment
– To measure the Brazilian informal sector and informal
employment following the ILO and SNA concepts
– To present value added and number of jobs by
production sector and type of employment in Brazil
between the years 2000 and 2006
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Data sources used
– The database used was the new series of the Brazilian
SNA, the reference year is 2000
– Preference to national accounts data:
• The informal employment measurement could also be obtained
from other sources such as household surveys. However, the
use of SCN is preferable because it presents a series with both
annual periodicity and national coverage. Moreover, it enables
crossing data by production sectors and type of employment, in
compliance with the ILO recommendation.
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Brazilian System of National Accounts
• The new national accounts
– Made no major conceptual changes, perhaps 1993 SNA was
implemented in 1997
– incorporated all available data (new data source: companies’
accounts) and new classification of products and activities, besides
few methodological improvements
– provided more detailed data on households including informal
sector, due to separation of NPISHs and transfer of agriculture
corporations and micro-enterprises to the Non-financial
Corporations
– incorporated the new international recommendations for
calculation of aggregates for both production sector and
employment.
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Contd…
• Although the SNA does not use the term "formal sector,"
Corporations, General Government, and NPISHs are part of it
• informal sector - a subdivision of the Households institutional
sector in which are classified the non-agricultural production
units characterized by a low level of organization and for not
having a clear division between labor and capital as production
factors and production of which is primarily designed for the
market
• The remaining household units, termed as other household units
here, are agriculture for market production or production for
own final use, actual and imputed rent, and paid domestic
services
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Contd…
• The Brazilian SNA publishes employment
results disaggregated by
– jobs with formal contracts (formal jobs)
• Formal jobs include employees with legal contracts,
military workers, civil servants and employers of
formal and incorporated enterprises.
– non-formal ones (informal jobs)
• Informal jobs include employees without legal
contracts and autonomous workers. These, in turn,
include self-employed workers, informal employers
and non-paid workers
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Results
• Very interesting and innovative study
• Household segregated to informal and other hh activities
• Workers cross-classified by formal/informal activities and
characteristics of workers
• Interesting results which to some extent contrary to other
developing countries’ experiences
• Formal sector share increasing in employment
– Incentives like general credit expansion, especially to micro and
small-sized businesses, and measures to simplify and reduce taxes
for these, must have contributed to the growth of formalization
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Few findings
• Downward tendency in the contribution of both informal
and other household units sectors in GVA
• The contribution of these two sectors reduced from 12.7%
and 14.5% of the GVA in 2000 to 9.9% and 11.7% in 2006
• Thus, the Households institutional sector as a whole
experienced a decrease from 27.2% to 21.6% in the GVA
• Consequently, in the same period, the share of gross value
added in the formal sector rose from 72.8% to 78.4%.
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Contd…
• total employment rose from 78.9 mn. to 93.2 mn. Showing
an 18.1% increase in 7 years
• growth in formal employment 31.3%, but informal
employment was only 9.9%
– This formalization increase in the labor market in recent years has
partially reversed the earlier deterioration movement of labor
quality perceived by the considerable increase in participation of
more precarious forms of job links—employees without legal
contracts and self-employed workers—characteristic of the 1990s.
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Contd…
• informal sector contributed 9.9% to GVA
with 27.2% of labor force
• other household units - 11.7% of GVA using
22.3% of labour force
• formal sector - 78.4% of GVA, but using
50.4% of labour force
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Contd…
•
out of the total 93 million jobs in 2006,
– 42.4% was formal ones
– 22.5% was related to jobs of employees
without legal contracts
– 35.1% self-employed
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THANKS
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