African social development report: informality and inequality in Africa: exploring the linkages

Abstract

The present report is a synthesis that draws on existing data and research on a range of interrelated themes relating to youth and women’s employment, informality and inequality. It focuses on the large majority of involuntary informal workers to analyse the channels through which informality contributes to inequality in Africa. Given the centrality of the labour market within countries and its far-reaching effects on poverty and inequality, understanding the relationship between informality and inequality is critical for designing suitable policies to reduce inequality by reducing the constraints that trap workers in informal employment. The report is based primarily on three background papers on specific themes and two country case studies on Namibia and the United Republic of Tanzania, each containing an in-depth analysis of relevant issues in each country. The background papers, review what governments and other key actors have been doing to ensure that policy and service delivery achieve meaningful results for youth, especially those who are disadvantaged and marginalized. The report draws on the analyses contained in those papers. The country case studies, prepared by national consultants, contain in-depth country analyses using available data sources. The countries selected for detailed study were chosen on the following criteria: regional representation; level of inequality and size of the informal sector; availability of relevant and up-to-date statistics on the issues covered in the report; and earlier studies carried out by academic institutions and think tanks in the country.