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Lecture 4---Decent wok for all

Hierarchies of earnings and poverty risk

Poverty risk of households by sources of income

Addressing informality, reducing poverty and gender
→ introducing the ‘3- V’ framework: Voice, Visibility and Validity’ (‘3- V’)
→ The condition of ‘Visibility’ requires that the working poor, especially women
in the informal economy are visible in labour force statistics.
→ In respect of the condition of ‘Voice’, the working poor, especially women, in
the informal economy, need a representative – and stronger – voice in the
processes and institutions that determine economic policies and formulate
the ‘rules of the (economic) game’.

→ The condition of ‘Validity’ refers to recognition and validation. The working
poor, especially women, in the informal economy need legal identity and
validity as workers and economic agents, and also need to be recognised
as legitimate targets of policy.

→ Poverty cannot be reduced by expecting economic policies to generate
employment and social policies to compensate the losers.
→ Economic growth often fails to generate sufficient employment or decent
employment, and compensation through social policies is seldom
sufficient and often neglected altogether.

→ To be effective, strategies to reduce poverty and promote equality should
be worker centred: that is, they must focus on the needs and constraints of
the working poor, especially women, as workers, not only as citizens, as
members of a vulnerable group, or as members of poor households.
→ This requires pursuing an inclusive development policy process that
includes the voices of the working poor and validates their contribution to
the economy.

Decent work for all
→ ILO set itself the challenge to achieve decent work for all, meaning
opportunities for men and women to find productive work in conditions of
freedom, equity, security and dignity.
→ Commitment to achieving this outcome ‘for all’ implicitly extended the
ILO’s reach from its traditional base of formal sector wage workers to
include the informal economy.

→ Overall the indicators capture relevant dimensions of work quality and
have the potential to be adequately applied to both formal and informal
workers.

Seven dimensions of Decent Work
→ 1. Labour market security: the ability to find and have work.
→ 2. Employment security: security against loss of current work.
→ 3. Job security: have an occupational niche and career prospects.
→ 4. Work security: health and safety at work.
→ 5. Skill reproduction security: opportunities to obtain and retain skills.
→ 6. Income security: adequate income from work and social security benefits.
→ 7. Representation security: protection of collective voice to represent rights at work

→ The informal economy is now also understood in terms of employment relations,
and includes enterprises outside of the regulatory framework as well as
employment relations which are not legally protected (Chen et al., 2004; ILO,
2002). The informal economy is therefore heterogeneous and this must be
accounted for in considering work- based securities and decent work.

→ One key dimension of difference within the informal economy is employment
status, which is often gendered. Employment status captures how one is
employed – through what employment relations. Distinctions include being self-
employed, salaried or a casual worker, with the latter including subcontracted
homework. Measures of decent work must accommodate differences in
employment status by gender to capture appropriately the breadth of
experiences of work quality in the informal economy

→ The poor quality of work opportunities in the informal economy and high
probability that informal workers will be poor are linked to the irregularity and
variability of earnings from informal work. The prevalence of income irregularity
and instability is associated with the extent of dependence embedded within
employment and production relations. The extent of dependence is then
associated with gender and employment status.
→ In the informal economy it is the nature of the work itself, particularly the
hierarchical relations often associated with particular employment status
categories, and the ascribed characteristics of the workers, which forms the basis
of the insecurities informal workers face

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