Globalization and informal jobs in developing countries

This joint ILO-WTO study brings together the current understanding of international research on the implications of trade globalization for informal labour markets in developing economies. Based on an overview of the existing academic literature and complemented by own research carried out at the International Labour Organization and the World Trade Organization, this report discusses the different dimensions of informal employment and sheds some light on how it is affected by trade reforms. Different transmission mechanisms are discussed and their relative importance evaluated, setting results from country studies against international comparisons. In addition, the volume evaluates to what extent countries with large informal sectors are able to take advantage of such reforms and analyses the relevant policies that would help maximise the benefits of trade openness. Notably, it discusses the obstacles created by highly informal labour markets to translate trade openness into sustainable higher long-term growth rates. The book focuses on the connections between trade policies and labour and social policies, creating conditions for countries to successfully integrate into the world economy while fostering decent work conditions. It will be of interest to all those who are involved in this debate: policymakers, academics, economists, workers and employers, and trade and union specialists.