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Improving opportunities to groups disadvantaged by informal-formal imbalance such as women and minorities in dual labour employment markets


Dr. Tamaro J. Green

TJG News:

2021-04-26 23:10:50 viewed: 647


Wang and Klugman (2020) suggested that investments in human capital have created better wages for women, neglecting discrimination of women that lack opportunities because of cultural and social norms.  Wang and Klugman (2020) explained that progress in gender equality may be eroded through the transition of developing economies.  Informal labour imbalance affects many areas of society such as finance and health care.  Moore, Zhu, and Clipp (2001) provided a comprehensive longitudinal study to identify the costs at a national level for informal care of dementia disorders.   The health pandemic increased the difficulty for vulnerable groups in labour markets.  Lee and Cho (2016) identified higher probability for unemployment, decreased working hours, and increased unemployment for a population over 50 after the MERS disease epidemic.  Lee and Cho (2016) identify indirect damage to the labour market caused by the polarization of socio-economic impacts of vulnerable groups to social inequalities after an epidemic.  Yadav (2021) discusses the inability for unionization in informal markets.

A number of recommendations may reduce dependency on informal labour markets for vulnerable populations.  Tax reform may discourage employers from choosing informal labour markets if tax policies favor formal employment.  Joshi, Prichard, and Heady (2014) explore the benefits and limitations of taxing informal labour markets.  Antón (2014) review tax reforms shifting labor tax to corporate income to finance social programs.  Weber (2015) recommends formalization and marginal effective tax rates to provide disincentives to encourage transitions from informal to formal employment.  An argument that is made for low minimum wage is the reduction in formal employment opportunities.    Another argument against raising minimum wage is it does not necessarily develop a higher standard of living for those that remain working in the informal labour market.  Hohberg and Lay (2015) discuss the limitations of a minimum wage policy for increasing the standard of living for informal employees in dual labour markets.  Mukherjee and Banerjee (2018) compare increasing and decreasing tariffs on imports and the effects of per capita income.  Kolm and Larsen (2016) address informal employment opportunities with labour market performance and educational attainments for potential regulations to replace informal jobs with formal jobs.  Scholz-Alvarado (2021) suggests that labour policies are an integral part of good economic governance and currency stability.





Antón, A. (2014). The effect of payroll taxes on employment and wages under high labor informality. Journal of Labor & Development, 3(20).

Hohberg, M., & Lay, J. (2015). The impact of minimum wages on informal and formal labor market outcomes: evidence from Indonesia. IZA Journal of Labor & Development, 4(1), 14. doi:10.1186/s40175-015-0036-4

Joshi, A., Prichard, W., & Heady, C. (2014). Taxing the informal economy: The current state of knowledge and agendas for future research. The Journal of Development Studies, 50(10).

Kolm, A.-S., & Larsen, B. (2016). Informal unemployment and education. IZA Journal of Labor Economics, 5(1), 8. doi:10.1186/s40172-016-0048-6

Lee, A., & Cho, J. (2016). The impact of epidemics on labor market: Identifying victims of the Middle East Respiratory Syndrome in the Korean labor market. International Journal for Equity in Health, 15(1), 196. doi:10.1186/s12939-016-0483-9

Moore, M. J., Zhu, C. W., & Clipp, E. C. (2001). Informal costs of dementia care: Estimates from the national longitudinal caregiver study. The Journals of Gerontology: Series B, 56(4), S219-S228. doi:10.1093/geronb/56.4.S219

Mukherjee, S., & Banerjee, S. (2018). Theoretical economics letters. Implications of Trade Policies in Segmented Factor Markets—A General Equilibrium Approach, 8, 780-792.

Scholz-Alvarado, C. (2021). The politics of labour that underlies European monetary integration. JCMS: Journal of Common Market Studies, n/a(n/a). doi:

Wang, L., & Klugman, J. (2020). How women have fared in the labour market with China's rise as a global economic power. Asia & the Pacific Policy Studies, 7(1), 43-64. doi:

Weber, M. (2015). Measuring disincentives to formal work. IZA World of Labor, 213.

Yadav, S. (2021). Flexibility and informalisation of labour: Intangible assets, family and the informal economy in India. Journal of Asian and African Studies, 0021909621999072. doi:10.1177/0021909621999072



Dr. Tamaro Green is a computer science researcher and the founder of TJG Web Services.  TJG Web Services, LLC is a consulting firm in the field of information technology.  Dr. Green writes on topics of privacy, security, and ethics in information technology and computer science.

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