According to a study by the Organization for Economic Cooperation and Development (OECD) published a few days ago, six out of ten workers today operate outside the law worldwide. Most of them are in countries with developing and emerging economies.
Something worse for the future that the report highlights is that the children of these workers are predestined to follow the same steps. Only a reinforcement of the social shield and the implementation of policies for the development of skills could end this vicious circle, according to the organization.
The document, which has 166 pages, is titled Breaking the vicious circles of informal employment and low-paid work, the OECD – which brings together 38 countries, mostly industrialized nations – maintains that People who have informal work represent 60% of the global workforce.
According to the definition of informal employment, this group includes those who are within the underground economy, a niche of workers among whom the lowest paid are most likely to fall into poverty, and having difficulties related to health and old age (not only them, but also all the members of their households).
Along these lines, the document warns that it is “extremely rare” for workers who are in this situation to change sides and go on to have regulated employment (or formal). And he warns about the negative conditions that this transfer has in many cases. “Even when these transitions occur, this does not necessarily translate into an improvement in the income of the poorest workers,” the text points out.
According to the analysis, about 45% finished, at most, andthe primary cycle –while, among those who have a formal job, only 7% are in that group–. Is a deficit that prevents them from accessing regulated positions with higher salaries. “This hinders the adoption of new technologies and productivity, perpetuating informal employment and maintaining a vicious intragenerational cycle of informality,” he adds.
“This is because “Their attendance at school from primary level onwards is less than that of other children,” The text explains, because his parents “dedicate fewer financial resources and less time to his education.” Hence, the transitions from school to work “are longer and more uncertain for them.”
Along with an x-ray of precarious employment in the world, the OECD report details what tools or strategies countries should focus on to address this reality. And it especially delves into two: the reinforcement of the social shield and policies for the development of skills.
it’s possible expand social protection to workers in the informal economy “with a combination of contributory and non-contributory regimes” and with the “mobilization of additional income […] by reinforcing compliance and application of tax obligations, so that the cost of formalization is not disproportionately increased.”
In accordance with skills development policies, the international organization considers it essential “create more specific training opportunities […] and public skills development programs adapted to their needs.” That is, through ways of recognizing the skills acquired in informal work.
The text concludes that policymakers must recognize that “some workers will never be able to leave low-paid informal jobs,” and, therefore, they must face this double burden through “remuneration policies that address inequality,” such as the establishment “of effective minimum wages” and “measures to improve the bargaining power of these workers.”
Source: Ambito
