Formalisation and the Grassroots Economy
Oct 22, 2024 | 11:00 AM - 11:40 AMBogota, Colombia
Oct 22, 2024 | 11:00 AM - 11:40 AM
Bogota, Colombia
Description
Improving job quality and promoting formalisation are fundamental ingredients to enhancing workers’ well-being. With over 40% of the households in the LAC region relying fully on informal employment, it is crucial to closely analyse the characteristics of informal work. The grassroots economy, often marked by informal employment and small-scale businesses, is vital to many communities in the LAC region. However, informal work poses considerable challenges for workers and its dependents, including income volatility, social and economic vulnerability, and lack of access to social protection. Analysing the grassroots economy involves understanding the diverse and specific circumstances and needs of informal workers and their households. In fact, the composition of a household in terms of formal or informal workers and its impact on the dependent members of the household is key to the design of social protection mechanisms. Tailored approaches that consider these contexts can lead to more effective policy actions to improve living conditions.
