Transcript the informal sector

THE INFORMAL SECTOR
in the 1993 SNA, Rev.1
EG
A
IVO HAVINGA, UN Statistics Division
CAROL CARSON, Project Manager
Session on the Non-observed Economy
Joint National Accounts Meeting
April 25-28, 2006 Geneva
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Plan of the presentation
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Informal sector in the SNA Update process
Context: Why is the informal sector an important
issue for the update of the 1993 SNA?
Definition of the informal sector: differences
between the ICLS (ILO) concepts of employment in
the informal sector/informal employment and the
SNA framework
Draft annotated outline of a chapter on the
informal sector in the 1993 SNA, Rev.1
Looking ahead
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Thus far in the update process
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Building on earlier discussions, the JanuaryFebruary AEG agreed that…
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differences in terminology should be reconciled,
differences in the definitions of market and nonmarket should be considered,
questions of comparability should be explored,
the new SNA chapter should provide a good
introduction without attempting include all the
material of a handbook.
The Statistical Commission, last month,
welcomed the chapter on the informal sector
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Context: Policy relevance of
measurement of the informal sector
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Links to development objectives on…
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income generation,
employment creation and
poverty reduction
and to the design and monitoring of targeted support
programs
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Informal sector’s contribution to non-agricultural GDP
 27 percent in northern Africa
 41 percent in Sub-Saharan Africa
 29 percent in Latin America
 31 percent in Asia
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Context: Selected developments in
methods and practice since 1993
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Papers of Delhi Group on Informal Sector Statistics
UN handbook Household Accounting: Experience in
Concepts and Compilation, Volume 1: Household
Sector Accounts
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Measuring the Non-observed Economy: A Handbook
by OECD, IMF, ILO and CISSTAT
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UNECE manual Non-observed Economy in National
Accounts
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Context: Calls for guidelines
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Issue in the work on the 1993 SNA; placed on the
research agenda
Statistical Commission 2004 reiterated
collaboration between UNSD and the Delhi Group
on informal sector
Forthcoming publication Surveys of Informal Sector
and Informal Employment
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Collaborative effort of ILO and members of Delhi
Group
Chapter on uses of informal sector data for national
accounts purposes
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Definition of the informal sector
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Differences between ICLS and SNA…
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in
in
in
in
terminology
segmenting the economy
the use of enterprise-based criteria
the universe of household enterprises
would be key points for discussion in the new
chapter. What are these differences?
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Terminology
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The ICLS use of “sector” does not
match the definition in the SNA.
The word “informal” has several
meanings:
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May imply a formal-informal sector
distinction between household
enterprises.
Can refer to exhaustiveness of data
collection practices as well as a production
unit with specific characteristics.
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Terminology
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(2)
The ICLS use of “households” is
narrower than the meaning in the
national accounts framework.
National accountants consider the
“formal” segment of enterprises to be
confined to institutional sectors other
than the household sector.
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Segmenting the economy
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ICLS uses non-registration to
identify informal enterprises within
household enterprises; in many
countries this may coincide with
lack of legal status and of accounts.
ICLS refers only to production units
that engage labor as input; national
accounts refer also to those that do
not use labor inputs.
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Use of enterprise-based criteria
 Criterion
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for market production
SNA: market producers are those that sell
“most or all” of their production on the
market at economically significant prices.
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ICLS: uses the phrase “some or all”.
 Conceptual
and practical
advantage of “some or all” criterion.
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Use of enterprise-based criteria
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Possible grouping for macroeconomic
statistics on the informal sector:
Household enterprises with employment
Enterprises with market production
Informal sector enterprises
Other household enterprises
Enterprises with only production for own
final use
Household enterprises without employment
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Universes of household enterprises
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With and without labor input (SNA)
versus with labor inputs (ICLS) (noted
above)
All economic activities (SNA) versus
non-agricultural activities (ICLS)
…
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Points for discussion
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What are views …
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about the differences listed—for example, which
are most important in practice?
about the ICLS “some or all” criterion used in
identifying market producers? Does it have
potential as an application for analysis and policy?
about international comparability—should further
attempts be made to identify groupings, including
the informal sector, that have greater crossborder and cross-region comparability?
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Draft outline of chapter
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Introduction
The informal sector: a broad
statistical perspective
Definition of the informal sector
Other concepts
Measurement
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Points for discussion
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Are there relevant topics that are
missing from the outline?
Are there views about the balance to
be struck—that the chapter should
be an introduction, not a handbook?
What could be omitted from the
outline?
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Looking ahead
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AEG sub-group
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Collaboration with ILO and Delhi Group
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Forums to test plans and drafts (e.g.,
UNECE April, Delhi Group, regional
meetings)
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Thank You
Ivo Havinga at [email protected]
Carol Carson at [email protected]
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