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A. a.(1)(a) i) a)SÓØØ012+ó¸_ 0CG TimesBoldScalable- ù - rÝ ƒ>›Þ'ÝÔUKUS.,ÔÓ'°X°ø°œX'ÓÓ  ÓÝ  ÝÔ_ÔÌÌTable_A d Ñ ± ÑÑ ‰ Ñ #Ñ#€))Xd#Ñ #Ñ#€))Xd#Ñ #Ñ#€))Xd#Ñ ÿÿCƒ‰•›£«±Right ParRight-Aligned Paragraph NumbersI.A.1.a.(1)(a)i)a)  ÿÿG“™Ÿ¥­µ»Para. droitNum)ro paragraphes align) ! droiteI.A.1.a.(1)(a)i)a)3|U«*Ͼ¦ `(CG TimesScalableXXwϾ¦ P쉊7ûXP'ô\  `*Times New RomanTT¼¼€ô\  PŽB•Q¼P+ó¸_ 0CG TimesBoldScalable„„·ó¸_ pì^7û„*Ͼ¦ `(CG TimesScalablebleîî•Ͼ¦ P쉊7ûîP(µVl$¡¡ÔUKUS.,ÔÑÑÑ  ÑÑTRW`Ð6Â&3Ø'Ð6Â&A4ÿ3Ø'TÑÓ'°X°ø°œX'ÓÓ  ÓH¿ #Ñ#€))Xÿÿd#Ñ¿¿¿€DDDc(Ô4(ÈhH  Z ‹6Times New Roman RegularMbV*L ˜HP LaserJet 6P/6MP - Standard,à$$,à0)ÿU‹ÿÀÀÀÝ ƒdVl!ÝÔUKUS.,ÔÑÑÑ  ÑÑTRUÈÐ6Â&3Ø'Ë6½&A4ÿ3Ø'TÑÓ'°X°ø°œX'ÓÓ  ÓÝ  ÝÔ_Ôѱ°Ñщ°ÑÐ ± ÐÌÌà@² ² $^à13th€Conference€of€Commonwealth€StatisticiansˆÌà@h h *^à(Gaborone/Botswana,€1„5€May€2000)ˆÌÌà@®®^àòòSession:€Measuring€the€Household€Sector€„€including€the€Informal€SectoróóˆÐ Q   ÐÌÌÌÌÌññà ø àññññà  àññÌÌÌÌÌÌÌÔ€)„Íî„X)XÔÔ€T„óê„„)„ÍîÔà@ŒŒ'^àò òINFORMAL€SECTOR:€STATISTICAL€DEFINITIONˆÐ Ð Ðà@_ _ 1^àAND€SURVEY€METHODSˆÌó óÔ€TX¹X„T„óêÔÔ€)X1bXXTX¹ÔÌÌÔ€)„Íî„X)X1bÔÔ€T„óê„„)„ÍîÔÌÌÌÌÌÌÌÌÌÌÔ€TX¹X„T„óêÔÔ€)X1bXXTX¹ÔÌà@rr2^àPaper€prepared€byˆÌÌÌà@ÇÇ3^àRalf€Ô_ÔHussmannsÔ_ÔˆÌà@HH0^àBureau€of€StatisticsˆÌà@üü-^àInternational€Labour€OfficeˆÌà@2^àCH„1211€Geneva€22ˆÌà@€€5^àSwitzerlandˆÐ Á/,) ÐÔ_ÔññÐ  ± ÐññØØÑ€UÑÑ8€)1b)XXdðXXdð8ÑÑ  Ñò òññÔ‡jXVíXX)X1bÔññI.à ø àBACKGROUNDÐ ± ÐÌA.ó óà ø àò òConcept€of€the€informal€sectorÐ ‘à Ðó óÌà ø àThe€concept€of€the€informal€sector€has€been€one€of€the€ILO's€most€distinctiveÏcontributions€to€development€thinking.€€The€first€appearance€of€the€term€"informal€sector"€in€anÏofficial€document€was€in€the€report€of€a€comprehensive€employment€mission€to€KenyaÏundertaken€by€the€ILO€in€1972.€€One€of€the€main€findings€of€the€mission€was€that,€in€aÏdeveloping€country€like€Kenya,€the€main€employment€problem€was€not€unemployment,€but€theÏexistence€of€large€numbers€of€"working€poor",€many€of€them€working€very€hard€in€the€productionÏof€goods€and€services,€but€whose€activities€were€not€recognised,€recorded,€protected€or€regulatedÏby€the€public€authorities.€€This€phenomenon€was€labelled€in€the€report€as€the€"informal€sector",Ïand€explained€by€the€inability€of€the€other€sectors€of€the€economy€„€agriculture€or€other€ruralÏactivities€on€the€one€hand,€and€modern€industry€and€services€on€the€other€„€to€provide€adequateÏincomes€or€employment€opportunities€to€a€rapidly€growing€labour€force.€€Since€then,€the€termÏ"informal€sector"€has€come€into€wide€use,€although€its€precise€meaning€has€remained€somewhatÏelusive€and€a€subject€of€controversy€as€the€concept€has€been€defined€in€different€contexts€withÏdifferent€meanings.€€In€spite€of€a€considerable€amount€of€research€and€data€collection€during€theÏpast€25€years,€the€understanding€of€what€the€informal€sector€is,€why€it€exists€and€how€it€operatesÏis€still€far€from€adequate.€€It€is€a€controversial€subject€because€there€are€different€viewpoints€fromÏwhich€one€can€observe€the€informal€sector.€€It€can€be€viewed€in€a€positive€way€as€a€provider€ofÏemployment€and€incomes€to€millions€of€people€who€would€otherwise€lack€the€means€of€survival.€ÏIt€can€be€viewed€more€negatively€as€a€whole€segment€of€society€which€escapes€regulation€andÏprotection.€€It€can€be€romanticised€as€a€breeding€ground€of€entrepreneurship€which€could€flourishÏif€only€it€were€not€encumbered€with€a€system€of€unnecessary€regulation€and€bureaucracy.€€It€canÏbe€condemned€as€a€vast€area€of€backwardness,€poverty,€insanitary€conditions,€hazardous€work,Ïillegality€and€open€use€of€child€labour.€€Or€it€can€simply€be€ignored.ÌÌà ø àWhile€there€have€been,€and€will€no€doubt€continue€to€be,€controversies€on€preciselyÏwhat€types€of€activities€and€what€categories€of€workers€the€informal€sector€covers,€there€does€atÏleast€seem€to€be€some€common€understanding€about€the€main€characteristics€of€the€informalÏsector.€€The€informal€sector€is€a€kind€of€umbrella€concept€to€describe€a€variety€of€activitiesÏproducing€goods€and€services€through€which€individuals€derive€employment€and€incomes.€€TheseÏactivities€are€undertaken€with€the€primary€objective€of€self„generation€of€employment€andÏincomes,€rather€than€maximisation€of€profit€or€of€return€on€investments€as€they€are€typical€for€theÏformal€sector.€€The€conditions€under€which€these€activities€come€into€existence€and€theÏconstraints€under€which€they€are€undertaken€confer€certain€characteristics€on€them.€€They€areÏinformal€in€the€sense€that€they€are€for€the€most€part€unregistered€and€unrecorded€in€officialÏstatistics,€and€that€they€are€operating€on€a€very€small€scale€and€with€a€low€level€of€organisation.€ÏMost€of€them€have€very€low€levels€of€capital,€productivity€and€income.€€They€tend€to€have€littleÏor€no€access€to€organised€markets,€to€credit€institutions,€to€modern€technology,€to€formalÏeducation€and€training€facilities,€and€to€many€public€services€and€amenities.€€A€large€number€ofÏthem€are€carried€out€without€fixed€location€or€in€places€that€are€not€visible€to€the€authorities,€suchÏas€small€shops,€workshops,€stalls€or€home„based€activities.€€They€are€not€recognised,€supportedÏor€regulated€by€the€government,€and€often€compelled€by€circumstances€to€operate€outside€theÏframework€of€the€law.€€The€existence€of€informal€sector€activities€on€the€fringes€of€the€law€hasÏsometimes€led€public€authorities€to€confuse€them€with€illegal€activities,€and€therefore€to€subjectÏthem€to€harassment€and€repression.€€Even€where€they€are€registered€and€respect€certain€aspectsÐ Á/,/ Ðof€the€law,€they€are€almost€invariably€beyond€the€pale€of€social€protection,€labour€legislation€andÏprotective€measures€at€the€workplace.ÌÌà ø àBeyond€these€generalisations,€the€informal€sector€manifests€itself€in€different€ways€inÏdifferent€countries,€different€regions€within€the€same€country,€and€even€different€parts€of€theÏsame€city.€€It€encompasses€different€kinds€of€activities,€different€types€of€enterprises,€andÏdifferent€motives€for€participation.€€The€activities€range€from€street€vending,€shoe„shining,€foodÏprocessing€and€other€petty€activities€requiring€little€or€no€capital€and€skills€and€with€marginalÏoutput€to€those€involving€a€certain€amount€of€investment€in€skills€and€capital€and€with€higherÏproductivity,€such€as€manufacturing,€tailoring,€car€repair€and€mechanised€transport.€€While€someÏinformal€sector€activities€resemble€traditional€activities€in€handicrafts,€food€processing€orÏpersonal€services,€others€such€as€car€repair,€recycling€of€waste€materials€or€transport,€are€new€andÏarise€from€modernisation.€€Informal€sector€activities€are€mostly€operated€by€single€individualsÏworking€on€own€account€as€self„employed€business€operators,€either€alone€or€with€the€help€ofÏunpaid€family€members,€although€some€are€micro„entrepreneurs€engaging€a€few€paid€workersÏor€apprentices.€€Labour€relations,€if€existing,€are€based€mostly€on€casual€employment,€kinship,Ïpersonal€or€social€relations€rather€than€contracts€with€formal€guarantees.€€Surveys€have€shownÏthat€there€are€considerable€inequalities€in€the€informal€sector.€€Most€people€engaged€in€it,€but€notÏall,€are€poor,€and€not€all€poor€people€work€in€the€informal€sector.€€Some€informal€sector€workersÏare€quite€destitute,€while€others€earn€incomes€that€are€higher€than€the€minimum€wage€in€theÏformal€sector.€€The€informal€sector€is€therefore€not€entirely€synonymous€with€poverty;€someÏformal€sector€wage€earners€are€in€fact€in€greater€poverty€than€some€of€the€informal€sectorÏentrepreneurs.€€It€is€important€for€the€purposes€of€policy„making€to€recognise€the€considerableÏheterogeneity€of€the€informal€sector.€€In€spite€of€their€heterogeneity,€all€informal€sector€activitiesÏhave€in€common€that€they€are€vulnerable.€€This€vulnerability€is€due€to€the€fact€they€have€to€relyÏas€best€they€can€on€self„supporting€and€informal€institutional€arrangements€for€credit,€training,Ïsocial€security,€etc.€which€operate€separately€and€independently€of€the€institutions€of€the€modernÏeconomy.ÌÌà ø àThe€motives€for€participation€in€the€informal€sector€range€from€pure€survival€strategiesÏundertaken€by€individuals€in€lack€of€(adequate)€jobs,€unemployment€insurance€or€other€forms€ofÏincome€maintenance,€to€the€desire€for€independence€and€flexible€work€arrangements€and,€in€someÏcases,€the€prospect€of€quite€profitable€income„earning€opportunities,€or€the€continuation€ofÏtraditional€activities.€€It€should€be€noted€in€this€connection€that€the€vast€majority€of€informalÏsector€activities€provide€goods€and€services€whose€production€and€distribution€are€perfectly€legal.€ÏThis€is€to€contrasted€with€criminal€activities€or€illegal€production,€i.e.€activities€which€areÏforbidden€by€law€or€which€become€illegal€when€carried€out€by€unauthorised€producers€(e.g.Ïextortion,€smuggling,€drug€traffic,€prostitution,€foreign€exchange).€€There€is€also€a€differenceÏbetween€the€concept€of€the€informal€sector€and€that€of€the€hidden€or€underground€economy.€ÏInformal€sector€activities€are€not€necessarily€performed€with€the€deliberate€intention€of€evadingÏthe€payment€of€taxes€or€social€security€contributions,€or€infringing€labour€legislation€or€otherÏregulations.€€Certainly,€some€of€the€units€prefer€to€remain€unregistered€or€unlicensed€in€order€toÏavoid€compliance€with€some€or€all€regulations€and€thereby€reduce€production€costs.€€One€shouldÏhowever€make€a€distinction€between€those€whose€business€revenue€is€high€enough€to€bear€theÏcosts€of€regulations€and€those€who€are€"illegal"€because€they€cannot€afford€to€comply€withÏexisting€regulations€as€their€income€is€too€low€and€irregular,€because€certain€laws€and€regulationsÐ ™/0*- Ðare€quite€irrelevant€to€their€needs€and€conditions,€or€because€the€State€is€virtually€non„existentÏin€their€lives€and€lacks€the€means€to€enforce€the€regulations€which€it€has€enacted.€€In€someÏcountries,€at€least,€a€sizeable€proportion€of€informal€sector€enterprises€are€actually€registered€inÏsome€way€and/or€pay€taxes,€even€though€they€may€not€be€in€a€position€to€comply€with€the€fullÏrange€of€legal€and€administrative€requirements.€€Being€deprived,€to€a€large€extent,€of€the€right€toÏappeal€to€the€courts€for€contracts€to€be€enforced€or€to€claim€security€of€tenure,€many€informalÏsector€entrepreneurs€would€prefer€to€legalise€their€operations€whenever€possible€and€therebyÏobtain€legal€protection€from€the€authorities.€€It€should€also€be€noted€that€substantial€segments€ofÏthe€hidden€or€underground€economy€originate€from€enterprises€belonging€to€the€formal€sector;Ïexamples€include€the€production€of€goods€and€services€"off„the„books",€undeclared€financialÏtransactions€or€property€income,€overstatement€of€tax„deductible€expenses,€employment€ofÏclandestine€workers,€and€unreported€wages€and€overtime€work€of€declared€employees.€€For€theseÏreasons,€the€concept€of€the€informal€sector€needs€to€be€distinguished€from€the€concept€of€theÏhidden€or€underground€economy.€€In€reality,€however,€there€will€always€be€some€overlap€betweenÏthe€informal€sector€and€the€hidden€or€underground€economy,€and€it€is€in€respect€of€this€overlapÏ(i.e.€deliberately€concealed€informal€sector€activities)€that€problems€of€non„response€and€under„¼reporting€are€most€likely€to€occur€in€informal€sector€surveys.ÌÌà ø àIn€spite€of€its€segmented,€precarious€and€semi„legal€existence,€the€informal€sectorÏcannot€exist€in€total€isolation€from€the€formal€sector.€€Although€it€largely€serves€markets€whichÏthe€modern€sector€is€too€inflexible€or€too€high€cost€to€reach,€formal€sector€workers€are€informalÏsector€customers,€and€the€existence€of€the€informal€sector€depends€much€on€its€ability€to€deliverÏgoods€and€services€at€lower€prices€or€smaller€quantities€than€those€of€the€formal€sector,€or€toÏprovide€goods€and€services€which€would€otherwise€not€be€available€at€all.€€The€informal€sectorÏalso€constitutes€a€huge€"labour€reserve"€on€which€the€formal€sector€can€draw€in€times€ofÏexpansion,€or€to€which€labour€can€be€returned€in€times€of€contraction.€€Besides,€in€manyÏcountries€an€increasing€number€of€informal€sector€activities€are€undertaken€as€secondaryÏactivities€by€farmers€and€formal€sector€employees€in€order€to€supplement€their€incomes.€ÏHowever,€the€nature€of€formal„informal€sector€relations€varies.€€Some€informal€sector€enterprisesÏare€highly€dependent€on€modern€enterprises€for€inputs,€and€modern€sector€enterprises€canÏfunction€as€monopolies€which€increase€the€price€of€the€inputs€required.€€Other€informal€sectorÏenterprises€may€act€as€subcontractors€to€the€formal€sector,€and€their€weak€economic€power€mayÏmake€them€vulnerable€to€exploitation.€€Other€activities,€consisting€of€jobs€performed€on€anÏindividual€basis,€are€likely€to€be€less€directly€linked€to€the€formal€sector,€although€evenÏseemingly€independent€street€vendors€have€sometimes€been€found€to€be€part€of€well„organisedÏcommercial€networks€controlled€by€large„scale€formal€enterprises.ÌÌà ø àWhile€there€continues€to€be€some€controversy€as€to€whether€the€informal€sectorÏconcept€is€useful€or€appropriate€either€for€analysis€or€for€policy„making,€or€whether€theÏphenomenon€that€it€describes€can€in€any€way€be€called€a€sector,€the€term€"informal€sector"€is€nowÏwidely€used€and€accepted€and€is€found€not€only€in€academic€literature€but€also€in€many€officialÏdocuments€and€policy€statements.€€From€a€statistical€point€of€view,€the€informal€sector€hasÏproved€to€be€a€useful€concept€for€the€collection€of€data€on€various€types€of€activities€whichÏâ âotherwise€would€not€be€sufficiently€reflected€in€official€statistics.Ð ¹-P(+ ÐÖ€VÿÿÖò òB.à ø àNeed€for€statistical€data€collection€on€the€informal€sectoró óÐ I ÐÌà ø àIn€the€past,€the€informal€sector€used€to€be€largely€ignored€by€official€statistics;Ïinformal€sector€activities€were€either€omitted€from€the€existing€statistics€or,€if€captured,€notÏidentified€separately.€€Little€need€was€felt€to€collect€data€on€informal€sector€activities€because€theÏdevelopment€strategies€pursued€were€mainly€oriented€towards€modern,€large„scale€enterprises,Ïand€the€informal€sector€was€considered€a€transient€phenomenon€that€would€dwindle€away€in€theÏnear€future€as€jobs€were€created€through€the€growth€of€the€modern,€formal€sector.€€However,Ïduring€the€past€decade€economic€recession,€adjustment€policies€and€continued€high€rates€ofÏurbanisation€and€population€growth€have€led€to€an€unprecedented€expansion€of€the€informalÏsector€in€many€countries,€as€modern€sector€enterprises,€and€especially€the€public€sector,€wereÏobliged€to€release€workers€or€reduce€wages€drastically.€€In€some€countries,€it€was€in€fact€only€theÏinformal€sector€which€absorbed€the€labour€force€and€kept€the€economy€going,€while€the€large,Ïmodern€enterprises€producing€goods€which€require€relatively€capital„intensive€technologiesÏimported€from€the€industrialised€countries€reeled€under€the€downturn.€€Moreover,€the€process€ofÏindustrial€restructuring€in€the€formal€sector€led€to€a€greater€decentralisation€of€production€throughÏsubcontracting€to€small€enterprises,€many€of€them€in€the€informal€sector.€€According€to€roughÏestimates,€the€informal€sector€now€accounts€for€up€to€40,€55€and€70€percent€of€total€urban€or€non„¼agricultural€employment€in€Latin€American,€Asian€and€African€countries€respectively.€€ItsÏcontribution€to€the€gross€domestic€product€is€usually€lower€but€far€too€high€to€be€negligible.€ÏThere€is€every€reason€to€believe€that€a€large€and€probably€increasing€segment€of€the€labour€forceÏin€many€countries€will€be€engaged€in€the€informal€sector€for€many€years€to€come,€and€that€theÏinformal€sector€will€remain€an€important€and€probably€expanding€part€of€the€national€economies.€ÏIt€is€therefore€increasingly€recognised€by€researchers€and€policy„makers€that€the€informal€sectorÏcan€no€longer€be€ignored€and€that€it€needs€to€be€integrated,€in€one€way€or€the€other,€into€theÏoverall€development€process.ÌÌà ø àAs€a€result,€a€growing€number€of€national€statistical€agencies€are€being€requested€byÏtheir€governments€and€others€to€provide,€as€part€of€their€regular€statistical€programmes,Ïcomprehensive€data€on€the€size€and€characteristics€of€the€informal€sector€and€its€evolution€overÏtime.€€This€demand€was€reflected,€for€example,€in€the€Addis€Ababa€Plan€of€Action€for€StatisticalÏDevelopment€in€Africa€in€the€1990s,€which€included€the€informal€sector€among€the€priority€areasÏfor€future€statistical€programmes.€€The€collection€of€data€on€the€informal€sector€represents€anÏimportant€step€forward€towards€the€improvement€of€labour€statistics,€economic€statistics€andÏnational€accounts€as€an€information€base€for€macroeconomic€analysis,€planning,€policyÏformulation€and€evaluation,€and€to€recognition€of€the€contribution€of€the€informal€sector€toÏvarious€aspects€of€economic€and€social€development,€including€employment€creation,€production,Ïincome€generation,€human€capital€formation€and€the€mobilisation€of€financial€resources.€€TheÏdata€can€also€be€used€for€the€design€and€evaluation€of€support€policies€and€assistanceÏprogrammes€for€the€informal€sector€with€a€view€to€increasing€its€productive€potential€(and,€hence,Ïits€employment„€and€income„generating€capacity),€improving€the€working€conditions€and€socialÏand€legal€protection€of€persons€employed€in€the€informal€sector,€developing€an€appropriateÏregulatory€framework€and€promoting€the€organisation€of€informalññ€ññññ€Ð  ©.`'* Ðññsector€producers€and€workers,Ïand€for€analysis€of€the€situation€of€particular€groups€of€informal€sector€workers€such€as€women,Ð ™/P(+ Ðchildren,€rural„urban€migrants€or€immigrants.ÌÌà ø àInformal€sector€statistics€are€especially€needed€in€developing€countries€where€theÏinformal€sector€plays€a€significant€role€in€total€employment€and€income€generation.€€It€is€beyondÏdoubt€that€an€informal€sector€also€exists€in€industrialised€countries,€but€the€scale€of€theÏphenomenon€and€the€context€in€which€it€occurs€are€quite€different.€€For€these€reasons,€theÏdevelopment€of€informal€sector€statistics€is€given€lesser€priority€in€industrialised€countries€andÏmay€require€different€measurement€methods.ÌÌÌò òII.à ø àSTATISTICAL€DEFINITION€OF€THE€INFORMAL€SECTORÐ ©`  ЀÌA.à0 ø àFifteenth€International€Conference€of€Labour€StatisticiansЉ@ ø "ø " Ðó ó€€Ð y0  Ðà ø àIt€is€most€obvious€that€the€informal€sector€does€not€easily€lend€itself€to€statisticalÏmeasurement.€€Due€to€the€diversity€of€activities€and€modes€of€operation€to€which€it€refers,€theÏconcept€of€the€informal€sector€as€such€is€not€very€clear„cut.€€Accordingly,€it€is€difficult€to€defineÏthe€informal€sector€precisely€in€terms€of€statistical€units€and€operational€criteria,€and€to€specifyÏits€scope€and€composition.€€Moreover,€the€large€number€of€units€to€be€surveyed€and€theirÏcharacteristics€(small€size,€high€mobility€and€turnover,€seasonal€variations€in€activity,€clusteringÏin€specific€areas,€lack€of€recognisable€features€for€identification/location,€lack€of€usable€records,Ïpossible€reluctance€to€survey€participation,€etc.)€require€modifications€in€traditional€surveyÏmethods€or€the€development€of€new€methods.ÌÌà ø àIn€order€to€assist€the€statistical€agencies€of€member€States€in€these€challenging€tasks,Ïthe€ILO€Bureau€of€Statistics,€following€a€request€made€by€the€Fourteenth€InternationalÏConference€of€Labour€Statisticians€(1987),€launched€a€series€of€activities€during€the€late€1980's,Ïwhich€culminated€in€the€adoption€of€a€"Resolution€concerning€statistics€of€employment€in€theÏinformal€sector"€by€the€Fifteenth€International€Conference€of€Labour€Statisticians€(15th€Ô_ÔICLSÔ_Ô)Ïin€January€1993.€€The€resolution€was€intended,€firstly,€to€provide€the€first€(and€so€far€only)Ïinternationally€approved€technical€guidelines€for€the€development€of€statistics€on€the€informalÏsector,€as€a€point€of€reference€which€would€facilitate€the€task€of€national€statistical€agencies€inÏdeveloping€definitions,€classifications€and€methods€of€data€collection€on€the€informal€sector€asÏsuited€to€the€particular€conditions€of€their€country.€€Secondly,€and€less€important€in€this€case,€theÏresolution€was€meant€to€reduce€unnecessary€differences€in€the€informal€sector€statistics€ofÏdifferent€countries€and€thus€improve€the€international€comparability€of€the€data.ÌÌà ø àThe€resolution€covers€a€variety€of€issues€relating€to€the€definition€of€the€informalÏsector€and€the€design,€content€and€conduct€of€informal€sector€surveys.€€It€lays€down€theÏmeasurement€objectives€for€informal€sector€data€collection.€€It€describes€the€concept€of€theÏinformal€sector€and€relates€it€to€the€conceptual€framework€of€national€accounting.€€It€specifiesÏthe€criteria€of€an€operational€statistical€definition€of€the€informal€sector€and€makes€a€number€ofÏrecommendations€regarding€the€scope€of€informal€sector€surveys€and€the€statistical€treatment€ofÏparticular€cases€which€are€at€the€borderline€between€the€informal€and€other€sectors.€€TheÐ ™/P(+ Ðresolution€also€provides€fairly€detailed€guidelines€for€the€design€of€informal€sector€data€collectionÏmethods€and€programmes,€account€being€taken€of€the€measurement€objectives€pursued€andÏdifferences€in€national€statistical€systems,€and€a€recommendation€to€collect€data€on€the€informalÏsector€on€a€regular€basis€as€part€of€the€national€statistical€programme.€€Finally,€it€includes€a€setÏof€proposals€regarding€sub„classifications€of€the€informal€sector€and€concerning€the€types€of€dataÏwhich€may€be€collected€in€informal€sector€surveys.€€A€copy€of€the€resolution€is€attached€as€annexÏto€this€paper.ÌÌà ø àIt€should€be€noted€that€in€spite€of€the€title€of€the€resolution,€its€relevance€goes€beyondÏemployment€statistics.€€In€July€1993,€the€UN€Economic€and€Social€Council,€uponÏrecommendation€of€its€Statistical€Commission,€adopted€the€revised€System€of€National€AccountsÏ(SNA€1993).€€The€informal€sector€definition€adopted€by€the€15th€Ô_ÔICLSÔ_Ô€forms€part€of€the€SNAÏ1993.€€This€is€because€one€of€the€new€features€of€the€SNA€1993€is€the€recommendation€toÏintroduce,€where€relevant,€sub„classifications€of€the€households€sector,€including€a€distinctionÏbetween€the€formal€and€informal€sectors.€€Such€a€distinction€makes€it€possible€for€the€nationalÏaccounts€to€quantify€the€contribution€of€the€informal€sector€to€the€national€economy.€€The€ILOÏas€lead€agency€in€the€promotion€of€the€informal€sector€concept€was€requested€to€take€part€in€thisÏwork€by€developing€international€guidelines€for€a€statistical€definition€of€the€informal€sector€inÏsuch€a€way€that€the€definition€could€also€be€used€for€national€accounting€purposes.ÌÌÌò òB.à ø àLinks€of€the€informal€sector€definition€with€national€accounts€conceptsÐ ù° Ðó óÌà ø àThe€informal€sector€definition€adopted€by€the€15th€Ô_ÔICLSÔ_Ô€was€linked€with€theÏconceptual€framework€of€the€SNA€in€order€to:€(Ô_ÔiÔ_Ô)€enhance€the€compatibility€of€informal€sectorÏstatistics€with€other€economic€and€social€statistics,€and€promote€statistical€integration;€(ii)Ïmeasure€the€informal€sector€as€part€of€the€economy€as€a€whole€rather€than€in€isolation;€(iii)€useÏthe€same€definition€of€the€informal€sector€in€labour€statistics€and€national€accounting;€and€(iv)Ïintegrate,€or€even€collect€jointly,€data€on€employment€and€data€on€other€characteristics€of€theÏinformal€sector.€€These€requirements€had€certain€implications€on€the€nature€of€the€definition,€asÏwill€be€explained€below.ÌÌ€€€€à ø àFirstly,€the€informal€sector€had€to€be€defined€in€terms€of€characteristics€of€theÐ I%  Ðproduction€units€(enterprises)€in€which€the€activities€take€place,€rather€than€in€terms€of€theÏcharacteristics€of€the€persons€involved€or€of€their€jobs.€€Accordingly,€the€population€employedÏin€the€informal€sector€was€defined€as€comprising€all€persons€who,€during€a€given€referenceÏperiod,€were€employed€in€at€least€one€production€unit€of€the€informal€sector,€irrespective€of€theirÏstatus€in€employment€and€whether€it€is€their€main€or€a€secondary€job.€€(The€definition€of€theÏpopulation€employed€in€the€informal€sector€stresses€thus€the€distinction€between€"employedÏpersons"€and€"jobs"€in€that€it€indicates€that€persons€are€classified€into€the€informal€sector€throughÏtheir€relationship€to€a€job€in€a€production€unit€with€specific€characteristics;€in€this€way,€it€isÏpossible€to€account€for€the€increasing€number€of€informal€sector€activities,€which€are€undertakenÏas€secondary€jobs€by€persons€whose€main€job€is€outside€the€informal€sector€(e.g.€farmers,Ïgovernment€employees),€in€order€to€compensate€for€stagnating€wages€and€declining€purchasingÐ ™/P(+ Ðpower).€€Persons€exclusively€employed€in€production€units€outside€the€informal€sector€areÏexcluded,€no€matter€how€precarious€their€employment€situation€may€be.€€Thus,€the€concept€ofÏpersons€employed€in€the€informal€sector€is€not€identical€with€the€concept€of€persons€employedÏin€informal€employment€relationships.ÌÌà ø àSecondly,€the€informal€sector€was€considered€as€a€Ô_ÔsubsectorÔ_Ô€of€the€SNA€institutionalÏsector€"households",€i.e.€informal€sector€enterprises€were€defined€as€a€subset€of€householdÏenterprises€or,€synonymously,€unincorporated€enterprises€owned€by€households.€€In€accordanceÏwith€the€SNA€1993,€household€enterprises€„€as€contrasted€with€corporations€and€quasi„¼corporations€„€are€defined€as€production€units€which€are€not€constituted€as€separate€legal€entitiesÏindependently€of€the€households€or€household€members€that€own€them,€and€for€which€noÏcomplete€sets€of€accounts€(including€balance€sheets€of€assets€and€liabilities)€are€available€whichÏwould€permit€a€clear€distinction€of€the€production€activities€of€the€enterprises€from€the€otherÏactivities€of€their€owners€and€the€identification€of€any€flows€of€income€and€capital€between€theÏenterprises€and€the€owners.ÌÌà ø àHousehold€enterprises€include€unincorporated€enterprises€owned€and€operated€byÏindividual€household€members€or€by€several€members€of€the€same€household,€as€well€asÏunincorporated€partnerships€and€co„operatives€formed€by€members€of€different€households,€ifÏthey€lack€complete€sets€of€accounts.€€It€should€be€noted€that€the€enterprises€may€or€may€notÏemploy€paid€workers,€and€that€the€activities€may€be€carried€out€inside€or€outside€the€owner'sÏhome.€€The€term€"household€enterprises"€simply€means€that€these€units€form€part€of€the€SNAÏinstitutional€sector€"households".€€The€characteristic€features€of€household€enterprises€correspondÏwell€to€the€concept€of€the€informal€sector€as€commonly€understood.€€The€fixed€and€other€capitalÏused€does€not€belong€to€the€production€units€as€such€but€to€their€owners.€€The€enterprises€as€suchÏcannot€engage€in€transactions€or€enter€into€contracts€with€other€units,€nor€incur€liabilities€on€theirÏown€behalf.€€The€owners€have€to€raise€the€necessary€finance€at€their€own€risk€and€are€personallyÏliable,€without€limit,€for€any€debts€or€obligations€incurred€in€the€production€process.€€ExpenditureÏfor€production€is€often€indistinguishable€from€household€expenditure,€and€capital€equipment€suchÏas€buildings€or€vehicles€may€be€used€indistinguishably€for€business€and€household€purposes.ÌÌÌò òC.à ø àMain€criteria€of€the€informal€sector€definitionó óÐ I%  ÐÌà ø àThe€first€three€criteria€of€the€informal€sector€definition€adopted€by€the€15th€Ô_ÔICLSÔ_Ô€referÏto€the€legal€organisation€of€the€enterprises,€their€ownership€and€the€type€of€accounts€kept€forÏthem;€these€three€criteria€are€embodied€in€the€concept€of€household€enterprises€as€describedÏabove.€€However,€while€all€informal€sector€enterprises€can€be€regarded€as€household€enterprises,Ïnot€all€household€enterprises€can€be€considered€as€being€part€of€the€informal€sector.€€TheÏinformal€sector€being€a€specific€subset€of€the€households€sector,€further€criteria¹ÑÑÑ  ÑÐ É,€%( ÐÑTR^lÂ&Ð6Standard - Dup LongUÈÐ6Â&½&Ë6A4 LandscapeË6½&A4TÑÑØ±ÑÑ\‰ÑÒ°ÒÒŰÒÔ€jî¯úîXjXVíÔññÔ#†)îdîîjî¯úk#Ôññà€Ê0Ê0•4àGraph€1ˆÐ p ÐÌò òFIFTEENTH€Ô_ÔICLSÔ_Ô:€€€FRAMEWORK€OF€INFORMAL€SECTOR€DEFINITIONó óÐ ÈX ÐÌÌHousehold€enterprises€(unincorporated€enterprises€owned€by€households)ÌÌÔ*qƒWX ddd Xdd Xdd X44qÔÔ,%td ÔÔ,%td ÔÔ,%td ÔÔ+  ÔÐ 7€YYD" ¤ 4 €*€‚ˆ‚ƒƒ„„7ÐÌÌà@\ \ 7 àInformal€own„ˆÌà@mm7 àaccount€enterprisesˆÌÌÐ 2€YY#˜ YYD „„2ÐÌÌà@M\àOther€own„ˆÌà@’’I\àaccount€enterprisesˆÐ 2€Y#°@ YY „„2ÐÌÌà@ä'ä'{*àOwn„accountˆÌà@^(^({*àenterprisesˆÐ P€YYYD;#°@  ˆ * Y €:€‚ˆ‚ƒƒ„„PÐÌÌà@q q 7 àEnterprises€ofˆÌà@WW7 àinformal€employersˆÌÌÐ 4€YYY#˜(YYYD „„4ÐÌÌà@ôôJ\àOther€enterprisesˆÌà@ÆÆL\àof€employersˆÐ 2€Y#@ÐYYY „„2ÐÌÌà@G(G({*àEnterprisesˆÌà@ë'ë'z*àof€employersˆÐ H€Y;#@Ð# ˆ : Y €ô€‚ˆ‚ƒƒ„„HÐÌà@. . 7 àInformal€sectorˆÌà@  7 àenterprisesˆÐ 0€Y#´D&Y „„0ÐÌà@K\àOther€householdˆÌ€à@99M\àenterprisesˆÐ -#´D)Y „„-ÐÐ$\ì* ˆ ô  $ÐÌÌà€d2d2™4àILOˆÐ  8#È, ÐѱØÑщ\ÑÒ°ÒÒ°ÅÒÔ€)X1bXî)îdÔÑÑÑ  ÑÑTRUÈÐ6Â&^lÂ&Ð6Standard - Dup LongË6½&A4½&Ë6A4 LandscapeTÑññÔ‡jXVíXX)X1bÔññwere€needed€to€distinguish€informal€sector€enterprises€from€other€unincorporated€enterprisesÐ I Ðowned€by€households.€€For€this€purpose,€the€15th€Ô_ÔICLSÔ_Ô€adopted€a€modular€approach€(Graph€1).€ÏAs€a€first€step,€within€the€conceptual€framework€of€household€enterprises€a€distinction€was€madeÏbetween€enterprises€of€employers€and€own„account€enterprises.€€In€accordance€with€theÏdefinitions€of€employers€and€own„account€workers€of€the€International€Classification€of€StatusÏin€Employment€(Ô_ÔICSEÔ_Ô„93),€the€distinction€was€based€on€whether€or€not€the€enterprises€employÏat€least€one€employee€on€a€continuous€basis€(as€contrasted€with€the€employment€of€employeesÏon€an€occasional€basis€and€of€unpaid€family€workers).€€The€distinction€was€deemed€importantÏfor€definitional€purposes:€as€compared€with€own„account€enterprises,€enterprises€of€employersÏnecessarily€have€a€higher€degree€of€formality€in€their€operations,€and€may€therefore€require€oneÏor€more€additional€criteria€for€being€classified€in€the€informal€sector.€€Moreover,€the€distinctionÏbetween€these€two€groups€of€enterprises€was€considered€useful€for€the€purposes€of€data€analysisÏand€policy„making,€and€as€an€important€variable€for€the€stratification€of€informal€sector€surveyÏsamples.ÌÌà ø àAccordingly,€the€informal€sector€was€defined€by€the€15th€Ô_ÔICLSÔ_Ô€as€comprising€(Ô_ÔiÔ_Ô)Ïinformal€own„account€enterprises€and€(ii)€enterprises€of€informal€employers,€and€separate€criteriaÏwere€specified€for€each€of€these€two€subgroups.ÌÌà ø àThese€criteria€had€to€meet€several€requirements:€(Ô_ÔiÔ_Ô)€their€number€had€to€be€small,€asÏthe€definition€was€meant€to€serve€the€purposes€of€both€data€collection€(i.e.€specification€of€theÏscope€of€investigation)€and€data€analysis;€(ii)€the€criteria€had€to€be€operational,€i.e.€clear„cut,Ïobjective,€simple,€easily€applicable€in€the€field,€and€pertaining€to€characteristics€that€were€readilyÏmeasurable€in€various€types€of€surveys,€including€labour€force€or€other€household€surveys€whereÏrespondents€are€not€only€the€informal€sector€entrepreneurs€themselves,€but€also€the€employeesÏand€unpaid€family€workers€working€with€them,€and€where€proxy€responses€by€other€householdÏmembers€can€hardly€be€avoided;€(iii)€the€criteria€had€to€be€relevant€to€the€notion€of€informality,Ïi.e.€they€had€to€be€meaningful€in€their€own€specific€right€but€at€the€same€time€be€correlated€withÏother€criteria€embodied€in€the€informal€sector€concept;€(iv)€the€criteria€had€to€refer€toÏcharacteristics€of€production€units,€be€relevant€to€all€kinds€of€informal€sector€activities€andÏshould,€as€little€as€possible,€define€ex€ante€characteristics€of€the€informal€sector€which€dataÏcollection€was€supposed€to€reveal€ex€post;€(v)€the€definition€had€to€be€broad€enough€to€allow€forÏflexibility€in€data€analysis€and€thereby€accommodate€the€needs€of€various€data€users,€i.e.€theÏdefinition€was€supposed€to€cover€as€large€a€universe€as€was€practically€feasible€and€conceptuallyÏcompatible€with€the€notion€of€informal€sector;€and€(vi)€the€definition€had€to€be€acceptable€to€aÏwide€range€of€countries€from€the€various€parts€of€the€world,€which€meant€that€it€had€to€be€generalÏenough€to€encompass€the€variety€of€ways€in€which€the€informal€sector€manifests€itself€in€differentÏcountries,€and€to€provide€flexibility€for€the€adoption€of€more€specific€definitions€at€the€countryÏlevel€according€to€the€specific€national€circumstances,€even€if€such€flexibility€was€likely€to€affectÏthe€international€comparability€of€the€statistics.ÌÌà ø àA€review€of€national€practices€shows€that€basically€two€different€ways€of€viewing€andÏdefining€the€informal€sector€are€being€used€by€countries€which,€to€some€extent,€are€interrelated.€ÏOne€refers€to€the€position€of€the€enterprises€in€relation€to€the€legal€and€administrative€frameworkÐ ™/P(+ Ðin€force,€and€views€the€informal€sector€as€made€up€of€units€which€do€not€conform€to€thatÏframework;€this€approach€is€used€primarily€by€countries€in€Europe€and€in€the€French„speakingÏpart€of€Africa.€€The€other€approach€views€the€informal€sector€as€a€particular€form€of€production,Ïand€defines€it€in€terms€of€the€way€the€enterprises€are€organised€and€carry€out€their€activities;€itÏis€used€primarily€by€countries€in€Latin€America,€Asia,€and€the€English„speaking€part€of€Africa.€ÏAs€is€described€in€detail€below,€the€international€definition€of€the€informal€sector€adopted€by€theÏ15th€Ô_ÔICLSÔ_Ô€incorporates€both€approaches€in€that€it€specifies€non„registration€and/or€size€in€termsÏof€employment€as€criteria€to€distinguish,€among€household€enterprises,€informal€sectorÏenterprises€from€other€unincorporated€enterprises€owned€by€households.ÌÌà ø àThe€15th€Ô_ÔICLSÔ_Ô€specified€that€depending€on€national€circumstances,€either€all€own„¼account€enterprises€should€be€considered€informal,€or€only€those€which€are€not€registered€underÏspecific€forms€of€national€legislation,€such€as€factories€or€commercial€acts,€tax€or€social€securityÏlaws,€professional€groups'€regulatory€acts,€or€similar€acts,€laws€or€regulations€established€byÏnational€legislative€bodies,€as€distinct€from€non„registration€under€regulations€enacted€by€localÏauthorities€for€the€purpose€of€obtaining€a€trade€license€or€a€permit€to€operate€a€business.€€TheseÏlatter€types€of€registration€were€not€considered€to€be€an€appropriate€criterion€because€they€areÏgoverned€by€administrative€regulations€and€their€enforcement€that€may€vary€considerably€fromÏone€country€to€another€and,€even€within€the€same€country,€over€time€or€between€different€regions.€ÏMoreover,€they€were€not€considered€to€have€much€of€an€effect€on€the€way€the€businesses€areÏorganised€and€operate,€nor€on€their€economic€objectives€and€behaviour.€€(The€similarity€inÏeconomic€objectives€and€behaviour€is€used€in€the€SNA€1993€as€guiding€principle€for€theÏdistinction€between€the€various€institutional€sectors€and€Ô_ÔsubsectorsÔ_Ô.)€€Recognising€that€theÏcriterion€of€non„registration€would€lack€a€clear€conceptual€basis€unless€it€was€specified€to€whichÏof€the€various€types€of€registration€it€referred,€the€inclusion€in€the€resolution€of€a€preciseÏstatement€on€this€matter€was€felt€necessary€(paragraph€8€(3)).€€It€should€also€be€noted€that€theÏ15th€Ô_ÔICLSÔ_Ô€did€not€include€any€size€criterion€in€the€definition€of€informal€own„accountÏenterprises;€such€a€criterion€was€considered€superfluous€as€by€their€very€nature€virtually€all€own„¼account€enterprises€are€likely€to€be€small.ÌÌà ø àIn€respect€of€enterprises€of€informal€employers,€the€15th€Ô_ÔICLSÔ_Ô€specified€that€theseÏshould€be€defined€in€terms€of€one€or€more€of€the€following€three€criteria:€small€size€of€theÏestablishment(s)€in€terms€of€employment,€non„registration€of€the€enterprise€(defined€in€the€sameÏway€as€for€informal€own„account€enterprises),€and€non„registration€of€its€employees.ÌÌà ø àAccording€to€the€15th€Ô_ÔICLSÔ_Ô,€the€criterion€of€employment€size€may€be€formulated€inÏterms€of€the€number€of€employees€employed€on€a€continuous€basis,€the€number€of€all€employeesÏ(including€employees€employed€on€an€occasional€basis),€or€the€total€number€of€persons€engagedÏduring€a€specific€reference€period€(including€the€entrepreneur,€business€partners€and€unpaidÏfamily€workers€in€addition€to€the€employees).€€The€number€of€employees€employed€on€aÏcontinuous€basis€was€considered€to€be€the€ideal€measure€from€the€conceptual€point€of€view,€asÏit€matches€best€the€definition€of€informal€own„account€enterprises,€which€does€not€take€accountÏof€the€number€of€enterprise€owners,€business€partners,€unpaid€family€workers€and€casualÏemployees€working€in€the€enterprise.€€In€practice,€however,€information€on€the€number€of€allÐ ™/P(+ Ðemployees€or€the€total€number€of€persons€engaged€may€be€more€easily€obtained€from€surveyÏrespondents€than€information€on€the€number€of€employees€employed€on€a€continuous€basis,€andÏmay€correspond€more€closely€to€the€criterion€used€to€define€the€lower€size€limit€„€or€cut„off€pointÏ„€for€determination€of€the€coverage€of€existing€establishment€censuses€and€surveys€of€formalÏsector€units.ÌÌà ø àIn€the€case€of€enterprises€composed€of€more€than€one€establishment,€the€15th€Ô_ÔICLSÔ_ÔÏrecommended€to€use€the€establishment€rather€than€the€enterprise€as€the€observation€unit€to€whichÏthe€size€criterion€refers.€€It€was€specified€that€an€enterprise€composed€of€more€than€oneÏestablishment€should€be€considered€informal€if€none€of€its€establishments€exceeds€the€size€limit.€ÏThe€use€of€the€establishment€rather€than€the€enterprise€as€observation€unit€for€the€size€criterionÏensures€compatibility€with€the€determination€of€coverage€of€establishment€censuses€and€surveysÏrelating€to€the€formal€sector,€so€that€informal€and€formal€sector€statistics€can€complement€eachÏother.€€It€also€becomes€possible€in€this€way€to€capture€the€development€of€informal€sectorÏenterprises€which,€for€various€reasons,€tend€to€grow€through€the€creation€of€additional€smallÏestablishments€rather€than€through€an€expansion€of€employment€in€the€original€establishment.ÌÌà ø àThe€size€limit€for€enterprises€of€informal€employers€was€not€specified€by€the€15thÏÔ_ÔICLSÔ_Ô€because€it€may€have€to€vary€between€countries€and,€even€within€a€given€country,€betweenÏbranches€of€economic€activity.€€It€was€recommended€that€the€choice€of€the€size€limit€should€takeÏaccount€of€the€coverage€of€establishment€censuses€and€surveys€of€the€larger€units€in€theÏcorresponding€branches€of€economic€activity,€where€such€inquiries€exist,€in€order€to€avoid€anÏoverlap.€€(Some€countries€actually€prefer,€however,€to€have€a€certain€overlap€in€coverage€as€longÏas€it€can€be€identified;€this€is€because€response€rates€and€data€quality€in€establishment€surveysÏtend€to€be€relatively€low€in€the€case€of€the€smaller€units€covered.)€€During€the€discussions€of€theÏconference,€some€reservation€was€expressed€against€defining€the€informal€sector€residually€asÏcomprising€all€units€which€were€not€covered€in€existing€establishment€censuses€and€surveys.€€TheÏusefulness€of€such€a€definition€was€doubted€for€purposes€of€data€analysis€and€policy„making.€ÏIt€was€pointed€out€that€a€residual€definition€might€be€rather€unstable€over€time,€because€theÏinformal€sector€would€expand€or€contract€if€the€coverage€of€the€existing€inquiries€were€changed.€ÏIt€was€also€feared€that€a€residual€definition€of€the€informal€sector€might€be€too€broad€for€someÏcountries,€depending€upon€the€level€of€development€of€their€statistical€system.€€Consequently,Ïit€was€stated€that€where€the€lower€cut„off€point€used€in€existing€inquiries€appeared€too€high€toÏbe€an€appropriate€upper€size€limit€for€enterprises€of€informal€employers,€efforts€should€also€beÏmade€to€extend€the€coverage€of€the€existing€inquiries€and€thereby€close€or€reduce€the€gap€fromÏboth€ends.€€It€was€felt€that€in€situations,€where€it€was€not€possible€to€lower€the€cut„off€point€ofÏexisting€inquiries,€it€might€sometimes€be€preferable€to€recognise€the€existence€of€an€intermediateÏsegment,€and€to€cover€it€through€a€separate€survey€rather€than€to€include€it€in€the€scope€ofÏinformal€sector€surveys€by€substantially€raising€the€upper€size€limit€in€the€definition€ofÏenterprises€of€informal€employers.€€This€is€because€the€survey€methods€used€for€informal€sectorÏenterprises€may€not€be€equally€well„suited€for€the€collection€of€data€on€medium„sized€enterprises.ÌÌà ø àThe€criterion€of€non„registration€of€the€employees€of€the€enterprise€was€meant€to€referÏto€the€conditions€of€employment€in€the€informal€sector€regarding€the€workers'€legal€and€socialÐ ™/P(+ Ðprotection.€€It€was€defined€in€terms€of€the€absence€of€employment€or€apprenticeship€contractsÏwhich€commit€the€employer€to€pay€relevant€taxes€and€social€security€contributions€on€behalf€ofÏthe€employees€or€which€make€the€employment€relationships€subject€to€standard€labourÏlegislation.€€According€to€this€criterion,€an€enterprise€would€be€considered€informal€if€none€ofÏits€employees€is€registered.ÌÌññÔ‡jX¡ XX)X1bÔññà ø àUse€of€the€criterion€of€non„registration€of€the€employees€of€the€enterprise€is€especiallyÏuseful€in€countries€where€the€registration€of€workers€also€leads€to€the€registration€of€theÏenterprises€employing€them€(e.g.€with€the€social€security€institutions).€€In€other€countries,Ïregistration€of€workers€is€likely€to€be€more€useful€as€an€indicator€of€the€quality€of€employmentÏthan€a€criterion€to€define€the€informal€sector.ÌññÔ#†)X1bX XjX¡8¨#ÔññÌÌò òD.à ø àAdditional€provisionsó óÐ y0  ÐÌà ø àIn€order€to€complement€its€definition€of€the€informal€sector,€the€15th€Ô_ÔICLSÔ_Ô€adoptedÏa€number€of€recommendations€regarding€the€scope€of€informal€sector€surveys€and€the€statisticalÏtreatment€of€particular€cases€at€the€borderline€between€the€informal€and€other€sectors.ÌÌÌà ø àò òNon„economic€activities.ó ó€€As€the€informal€sector€definition€adopted€by€the€15th€Ô_ÔICLSÔ_ÔÐ  À Ðwas€linked€with€the€conceptual€framework€of€the€SNA,€the€scope€of€the€informal€sector€wasÏrestricted€to€economic€activities,€i.e.€activities€included€in€the€SNA€production€boundary.€€ThisÏrestriction€was€considered€necessary€to€ensure€that€employment,€production€and€incomeÏgeneration€in€the€informal€sector€can€be€measured€as€a€share€of€total€employment,€domesticÏproduct€and€national€income.€€Excluded€are€domestic€and€personal€services€provided€by€unpaidÏhousehold€members,€as€well€as€volunteer€services€rendered€to€the€community.€€It€should€be€notedÏin€this€connection€that€the€SNA€production€boundary€also€includes€illegal€or€concealed€activitiesÏprovided€they€are€genuine€processes€of€production€whose€outputs€consist€of€goods€or€servicesÏfor€which€there€is€an€effective€market€demand€(i.e.€the€transactions€are€made€by€mutual€consentÏbetween€the€producers€and€consumers€of€the€goods€or€services€in€question).€€In€principle,€all€suchÏactivities€fall€within€the€scope€of€the€informal€sector€if€they€are€undertaken€by€units€meeting€theÏcriteria€of€the€informal€sector€definition.€€It€was€recognised,€however,€that€in€practice€many€ofÏsuch€activities€may€go€unreported€in€statistical€surveys.ÌÌà ø àò òNon„market€production.ó ó€€According€to€the€15th€Ô_ÔICLSÔ_Ô,€household€enterprises€whichÐ (Ð # Ðare€òòexclusivelyóó€engaged€in€the€production€of€goods€or€services€for€own€final€consumption€or€ownÐ  )À!$ Ðfixed€capital€formation€(i.e.€building€of€own€houses€etc.)€should€be€excluded€from€the€informalÏsector,€with€the€possible€exception€of€households€employing€paid€domestic€workers.€€ThisÏrecommendation€was€based€on€two€considerations.€€Firstly,€units€exclusively€engaged€in€non„¼market€production€differ€in€their€economic€objectives€and€behaviour€from€informal€sectorÏenterprises,€which€are€typically€operated€for€the€purpose€of€earning€one's€living€or€obtaining€anÏadditional€income€through€the€production€of€goods€and€services€for€sale€to€others;€they€shouldÏthus€not€be€merged€in€the€same€concept.€€Secondly,€it€was€considered€prohibitively€difficult€toÐ ™/P(+ Ðdetermine€the€value€of€goods€produced€for€own€final€use€unless€the€same€units€also€produce€someÏof€their€goods€for€sale€to€others.ÌÌà ø àò òAgricultural€activities.ó ó€€Conceptually,€there€is€nothing€against€the€inclusion€ofÐ  Ð Ðhousehold€enterprises€engaged€in€agricultural€and€related€activities€within€the€scope€of€theÏinformal€sector.€€For€the€practical€reasons€of€data€collection,€however,€the€15th€Ô_ÔICLSÔ_ÔÏrecommended€to€exclude€agricultural€and€related€activities€from€the€scope€of€informal€sectorÏsurveys€and€to€measure€them€separately.€€This€is€because€many€developing€countries€have€a€largeÏagricultural€sector€which€is€mainly€composed€of€small,€unregistered€household€enterprises.€€TheirÏinclusion€in€informal€sector€surveys€would€lead€to€a€considerable€expansion€of€the€surveyÏoperations€and€a€substantial€increase€of€the€survey€costs.€€Moreover,€many€countries€have€alreadyÏan€established€system€of€agricultural€censuses€and€surveys€whose€coverage€often€extends€toÏhousehold€enterprises€engaged€in€agricultural€and€related€activities,€or€can€relatively€easily€beÏso€extended.€€These€data€sources€appear€better€suited€than€informal€sector€surveys€to€meeting€theÏparticular€requirements€for€measuring€agricultural€and€related€activities€in€terms€of€concepts,Ïdefinitions,€classifications,€survey€content,€questionnaire€design,€reference€periods,€samplingÏframes€and€procedures,€organisation€of€field€work,€etc.ÌÌà ø àHowever,€the€15th€Ô_ÔICLSÔ_Ô€also€recommended€that€non„agricultural€activities€ofÏhousehold€enterprises€mainly€engaged€in€the€agricultural€sector€should€be€included€if€they€meetÏthe€criteria€of€the€informal€sector€definition.€€Experience€has€shown€that€such€non„agriculturalÏactivities€are€frequently€undertaken€as€secondary€activities€of€farm€households€or€during€theÏagricultural€slack€season.ÌÌà ø àò òRural€areas.ó ó€€Recognising€the€large€number€of€informal€sector€activities€in€the€ruralРɀ Ðareas€of€many€countries,€the€15th€Ô_ÔICLSÔ_Ô€recommended€that,€in€principle,€the€informal€sectorÏshould€include€enterprises€located€in€urban€areas€as€well€as€enterprises€located€in€rural€areas.€ÏHowever,€countries€starting€to€conduct€informal€sector€surveys€were€given€the€option€to€confineÏdata€collection€initially€to€urban€areas€only,€until€resources€and€appropriate€sampling€framesÏbecome€available€to€cover€the€whole€national€territory.ÌÌà ø àò òProfessional€and€technical€services.ó ó€€It€was€sometimes€suggested€in€the€past€toÐ Y$ Ðexclude€enterprises€engaged€in€the€production€of€professional€or€technical€services€rendered€byÏself„employed€doctors,€lawyers,€accountants,€architects,€engineers,€etc.€from€the€scope€of€theÏinformal€sector€because€of€the€high€level€of€skills€involved.€€However,€the€15th€Ô_ÔICLSÔ_ÔÏrecommended€that€such€enterprises€should€be€included€in€or€excluded€from€the€informal€sectorÏon€the€same€basis€as€other€enterprises.ÌÌà ø àò òÔ_ÔOutworkersÔ_Ô€(Ô_ÔhomeworkersÔ_Ô).ó ó€€In€accordance€with€the€SNA€1993,€Ô_ÔoutworkersÔ_ÔÐ é* #& Ð(Ô_ÔhomeworkersÔ_Ô)€were€defined€as€persons€who€agree€to€work€for€a€particular€enterprise,€or€toÏsupply€a€certain€quantity€of€goods€or€services€to€a€particular€enterprise,€by€prior€arrangement€orÏcontract€with€that€enterprise,€but€whose€place€of€work€is€not€within€any€of€the€establishmentsÏwhich€make€up€that€enterprise.€€It€was€recommended€that€Ô_ÔoutworkersÔ_Ô€should€be€included€amongÏinformal€sector€enterprises€if€they€constitute€enterprises€on€their€own€as€self„employed€persons,Ð ™/P(+ Ðand€if€these€enterprises€meet€the€criteria€of€the€informal€sector€definition.€€Criteria€for€theÏdistinction€between€self„employed€and€employee€Ô_ÔoutworkersÔ_Ô€include€the€basis€of€remunerationÏ(income€received€as€a€function€of€the€value€of€outputs€produced€vs.€payment€related€to€theÏamount€of€labour€inputs€provided),€employment€of€paid€workers€by€the€Ô_ÔoutworkerÔ_Ô,€existence€ofÏan€employment€contract€with€the€enterprise€receiving€the€goods€or€services€produced€by€theÏÔ_ÔoutworkerÔ_Ô,€decision„making€on€markets,€scale€of€operations€and€finance,€and€ownership€ofÏmachinery€or€equipment.ÌÌà ø àò òPaid€domestic€workers.ó ó€€In€many€situations€it€is€virtually€impossible€to€distinguish,Рɀ Ðamong€paid€domestic€workers€engaged€by€households€(e.g.€maids,€laundresses,€watchmen,Ïdrivers,€gardeners),€those€who€are€self„employed€(i.e.€owners€of€household€enterprises€producingÏservices€for€sale€on€the€market)€from€those€who€are€employees€of€the€households€employingÏthem€(i.e.€employees€of€household€"enterprises"€producing€services€for€their€own€finalÏconsumption).€€Moreover,€data€on€paid€domestic€workers€and€their€remuneration€are€oftenÏalready€available€from€other€sources,€such€as€labour€force€surveys€and€household€income€andÏexpenditure€surveys.€€For€these€reasons,€the€issue€of€whether€or€not€paid€domestic€workers€shouldÏbe€included€in€the€informal€sector€was€left€open€for€determination€by€countries€themselves,Ïdepending€upon€their€national€circumstances€and€the€intended€uses€of€the€statistics.€€If€includedÏin€the€informal€sector,€paid€domestic€workers€should€however€be€identified€as€a€separate€sub„¼category€in€order€to€enhance€the€international€comparability€of€the€statistics.ÌÌÌò òE.à ø àOutlookó óÐ é  ÐÌà ø àThe€criteria€of€the€informal€sector€definition€adopted€by€the€15th€Ô_ÔICLSÔ_Ô€are€summarisedÏin€Graph€2€below.€€The€approach€used€by€the€15th€Ô_ÔICLSÔ_Ô€to€define€the€informal€sector€correspondsÏto€the€common€understanding€of€the€informal€sector€as€an€umbrella€concept€which€encompassesÏa€variety€of€different€activities:€"Informal€sector€was€...€never€proposed€as€a€definition€of€aÏhomogeneous€group€...€;€rather€it€was€identified€with€a€sub„set€of€economic€activities€andÏintended€to€describe€a€domain€like€rural€or€urban€sectors€only€to€focus€research€and€policy.€€JustÏas€in€the€case€of€rural€or€urban€sectors,€one€needs€to€Ô_ÔdisaggregateÔ_Ô€it€in€order€to€draw€meaningfulÏconclusions"€(Ô_ÔSethuramanÔ_Ô,€1988).ÌÌà ø àThe€informal€sector€as€defined€by€the€15th€Ô_ÔICLSÔ_Ô€comprises€thus€a€fairly€heterogeneousÏset€of€units€in€any€country.€€In€order€to€show€the€structure€of€the€informal€sector,€and€to€identifyÏmore€homogeneous€groups€for€data€analysis,€as€targets€for€policies€and€support€programmes,€andÏas€a€basis€for€comparisons€of€the€statistics€over€time€and€between€countries,€paragraph€36€of€theÏ15th€Ô_ÔICLSÔ_Ô€resolution€recommends€to€classify€informal€sector€enterprises€by€variousÏcharacteristics€(e.g.€urban€vs.€rural€location,€kind€of€activity,€type€of€workplace,€size,€compositionÏof€the€workforce,€type€of€ownership,€relation€with€other€enterprises).€€Moreover,€it€wasÏrecognised€that€for€particular€analytical€purposes€it€may€be€necessary,€at€the€national€level,€toÏdevelop€more€specific€definitions€of€the€informal€sector€by€Ð  ¹-p&) ÐÓ6°X°ø ôš°‚Xø 6ÓññÔ#†)X1bXXjXVí–x#ÔññGraph€2Ð I ÐÌÌà@ÜÜ^àò òFIFTEENTH€Ô_ÔICLSÔ_Ô:€CRITERIA€OF€THE€INFORMAL€SECTOR€DEFINITIONó óˆÐ  Ð ÐÌà@¸¸^à___________________________________________________________________________ˆÌÌÌà ø àò òMandatory€criteriaó óРɀ ÐÌÌà ø à1.€Legal€organisation:à  àunincorporated€enterprisesÐ ™P  ÐÌà ø à2.€Enterprise€ownership:à  àhouseholdsÐ y0  ÐÌà ø à3.€Type€of€accounts:à  àno€complete€sets€of€accountsÐ Y ÐÌà ø à4.€Product€destination:à  àat€least€some€market€outputÐ 9ð ÐÌà ø à5.€Number€of€persons€engaged/Ìà ø àà  àemployees/employees€employedÌà ø àà  àon€a€continuous€basis€inÌà ø àà  àthe€establishment(s):à  à)Ð é  ÐÌà ø àà  àand/orÌÌà ø àà  àNon„registration€of€enterprise:à  à)à ô àto€be€specified€accordingÐ ©` Ðà ø àà  àà  àà ô àto€Ó<°X°ø l°‚Xø ô¦<ÓnatÓ9°X°ø ˜°‚Xø T9Óional€circumstancesÌà ø àà  àand/orÌÌà ø àà  àNon„registration€of€employeesÌà ø àà  àof€enterprise:à  à)Ð Y$ ÐÌÌà ø àò òOptional€criteriaó óÐ )'à" ÐÌà ø à6.€Kind€of€economic€activity:à  àpossible€exclusion€of€agriculturalÐ  )À!$ Ðà ø àà  àà  àand€related€activitiesÌà ø àà  àà  àand€of€paid€domestic€servicesÌÌà ø à7.€Geographic€area:à  àpossible€exclusion€of€rural€areasÐ É,€%( ÐÌÌILOÐ  ™/P(+ ÐññÔ‡jXVíXX)X1bÔññintroducing€further€criteria€on€the€basis€of€the€data€collected,€and€that€such€definitions€may€haveÐ I Ðto€vary€according€to€the€needs€of€different€users€of€the€statistics€(paragraph€10).ÌÌà ø àIt€should€be€noted€that€the€term€"informal€sector"€has€become€so€popular€that€is€beingÏused€with€different€meanings€for€different€purposes.€€Originally,€it€was€used€to€refer€to€a€conceptÏfor€data€analysis€and€policy„making.€€Meanwhile,€it€is€sometimes€also€being€used€in€a€muchÏbroader€sense€to€refer€to€a€concept€for€the€collection€of€data€on€activities€not€covered€by€theÏexisting,€conventional€sources€of€statistics.€€In€line€with€the€original€notion€behind€the€concept,Ïthe€starting€point€of€the€15th€Ô_ÔICLSÔ_Ô€for€defining€the€informal€sector€was€an€understanding€of€theÏinformal€sector€as€an€"analytical/political"€rather€than€"statistical"€concept;€hence,€care€was€takenÏto€make€the€activities€included€in€the€informal€sector€definition€as€similar€as€possible€regardingÏtheir€economic€objectives€and€behaviour€and€in€respect€of€the€information€requirements€for€dataÏanalysis.€€From€a€practical€point€of€view€in€terms€of€survey€operations,€a€related€considerationÏfor€the€inclusion€or€exclusion€of€units€was€the€need€for€and€usefulness€of€their€coverage€inÏinformal€sector€surveys.€€However,€the€15th€Ô_ÔICLSÔ_Ô€also€tried€to€accommodate€as€far€as€possibleÏthe€notion€of€the€informal€sector€as€a€statistical€concept,€in€extending€the€scope€of€the€informalÏsector€to€as€large€a€universe€of€statistically€unrecorded€activities€as€deemed€practically€feasibleÏand€conceptually€justifiable.ÌÌà ø àNevertheless,€the€15th€Ô_ÔICLSÔ_Ô€withstood€the€temptation€of€interpreting€the€umbrellaÏconcept€of€the€informal€sector€as€a€"catch„all"€concept€for€statistically€unrecorded€activities.€ÏConsequently,€the€definition€adopted€is€likely€to€serve€only€partially€the€purpose€of€achieving€aÏcomplete€coverage€of€all€productive€activities,€which€is€an€important€objective€of€nationalÏaccounting.€€Similarly,€the€definition€adopted€was€not€meant€to€lead€to€a€segmentation€of€theÏeconomy€or€the€employed€population€according€to€a€formal/informal€sector€dichotomy.€€The€15thÏÔ_ÔICLSÔ_Ô€recognised€that€activities€excluded€from€the€scope€of€the€informal€sector€were€notÏnecessarily€formal;€examples€are€the€non„market€production€of€goods,€small„scale€agriculture,Ïpaid€domestic€services,€and€activities€presently€falling€outside€the€SNA€production€boundary,Ïsuch€as€domestic€or€personal€services€provided€by€unpaid€household€members€and€volunteerÏservices€rendered€to€the€community.€€It€was€recommended€that€such€activities€should€beÏidentified€as€separate€categories€outside€the€formal/informal€sector€distinction.ÌÌà ø àÔ‡j&ú%XjXVíÔà  àA€review€of€national€practices€in€the€collection€of€statistical€data€on€the€informal€sector,Ð I%  Ðwhich€was€made€by€the€ILO€(1998),€revealed€that€there€were€currently€some€problems€in€using€these€dataÏfor€international€comparisons.€€The€international€comparability€of€the€data€is€affected€by€nationalÏdifferences€in€data€sources,€in€the€geographical€coverage€of€surveys,€in€the€branches€of€economic€activityÏor€groups€of€persons€covered,€in€the€choice€of€the€criteria€used€to€define€the€informal€sector,€in€the€wayÏthat€these€criteria€are€specified,€and€€in€the€treatment€of€specific€groups€of€activities,€enterprises€orÏworkersÔ#†jXVíX%j&ú å#ÔÔ‡j&ú%XjXVíÔ.€€Some€(but€not€all)€of€these€differences€are€in€line€with€the€15th€Ô_ÔICLSÔ_Ô€resolution,€whichÐ q*(#& Ðconceded€a€substantial€amount€of€flexibility€to€countries€in€defining€and€measuring€the€informal€sector.€ÏSome€elements€of€flexibility€were€intentional,€because€the€15th€Ô_ÔICLSÔ_Ô€resolution€was€the€firstÏinternational€recommendation€ever€adopted€on€the€topic,€and€its€main€purpose€was€to€provide€technicalÏguidelines€for€the€development€of€informal€sector€statistics€rather€than€strive€after€the€internationalÏcomparability€of€data.€€Other€elements€of€flexibility€were€born€out€of€necessity,€because€the€15th€Ô_ÔICLSÔ_ÔÏhad€reached€the€limits€beyond€which€no€further€agreement€was€possible.Ð ™/P(, Їà ø àThere€are€currently€several€initiatives€at€the€international€level€which€are€likely€to€provideÏa€further€stimulus€to€the€development€of€informal€sector€statistics€and€to€the€improvement€of€theirÏinternational€comparability.€€Urban€informal€sector€employment€as€a€percentage€of€total€urbanÏemployment€has€been€chosen€as€one€of€the€18€ILO€Key€Indicators€of€the€Labour€Market€(Ô_ÔKILMÔ_Ô).€€InÏorder€to€enhance€the€international€comparability€of€this€indicator,€the€ILO€has€already€started€work€toÏharmonise,€as€far€as€possible,€the€informal€sector€definitions€used€by€the€countries€concerned;€this€workÏis€being€undertaken€in€cooperation€with€the€national€statistical€agencies€providing€the€data€for€theÏindicator.€€The€informal€sector€is€also€included€in€the€UN€Minimum€National€Social€Data€Set€(Ô_ÔMNSDSÔ_Ô)Ïas€a€sub„indicator€to€the€employment„to„population€ratio;€the€Ô_ÔMNSDSÔ_Ô€was€suggested€following€theÏWorld€Summit€for€Social€Development.ÌÌÔ#†jXVíX%j&úÝç#ÔññÔ‡jX¡ XX)X1bÔññà ø àIn€order€to€enhance€the€international€comparability€of€informal€sector€statistics,€the€Ð ½t  ÐExpert€Group€on€Informal€Sector€Statistics€(Delhi€Group),€which€was€constituted€in€1997€as€oneÏof€the€city€groups€reporting€to€the€UN€Statistical€Commission,€has€tried€to€harmonize€nationalÏdefinitions€of€the€informal€sector€on€the€basis€of€the€framework€set€by€the€internationalÏdefinition.€€The€issue€was€discussed€in€detail€during€the€third€meeting€of€the€Delhi€Group,€whichÏwas€held€in€New€Delhi€from€17„19€May€1999.€€The€Delhi€Group€recognized€that€there€wereÏcurrently€limits€to€the€harmonization€of€national€definitions€of€the€informal€sector.€€Nevertheless,Ïon€the€basis€of€the€largest€common€denominator€the€Group€was€able€to€identify€a€subset€of€theÏinformal€sector€which€could€be€defined€uniformly€and€for€which€countries€could€makeÏinternationally€comparable€data€available.€€Since€at€present€this€subset€covered€only€a€relativelyÏsmall€part€of€the€informal€sector€in€any€country,€the€Delhi€Group€emphasized€that€further€effortsÏwere€needed€to€enlarge€it€in€future.€€Accordingly,€the€Delhi€Group€adopted€the€following€text:ÌÌð ðSince€the€informal€sector€manifests€itself€in€different€ways€in€different€countries,€nationalÏdefinitions€of€the€informal€sector€cannot€be€fully€harmonised€at€present.€€International€agenciesÏshould€disseminate€informal€sector€data€according€to€the€national€definitions€used.€€In€order€toÏenhance€the€international€comparability€of€informal€sector€statistics,€they€should€also€disseminateÏdata€for€the€subset€of€the€informal€sector,€which€can€be€defined€uniformly.€€So€as€to€define€thisÏsubset,€the€Delhi€Group€adopts€the€following€recommendations:ÌÌ1.à0 ø àAll€countries€should€use€the€criteria€of€legal€organisation€(unincorporated€enterprises),Ð }#4 Ðof€type€of€accounts€(no€complete€set€of€accounts)€and€of€product€destination€(at€leastÏsome€market€output).Ð ø "ø " ÐÌ2.à0 ø àSpecification€of€the€employment€size€limit€of€the€enterprise€in€€national€definition€ofÐ ='ô# Ðthe€informal€sector€is€left€to€the€countryððs€discretion.€€For€international€reporting,Ïhowever,€countries€should€provide€figures€separately€for€enterprises€with€less€than€fiveÏemployees.€€In€the€case€of€multiple„establishment€enterprises,€the€size€limit€shouldÏapply€to€the€largest€establishment.Ð ø "ø " ÐÌ3.à0 ø àCountries€using€the€employment€size€criterion€should€provide€Ô_ÔdisaggregatedÔ_Ô€figuresÐ Ý,”%) Ðfor€enterprises,€which€are€not€registered,€as€well€as€for€enterprises,€which€areÏregistered.Ð ø "ø " ÐÐ ­/d(, Ð4.à0 ø àCountries€using€the€criterion€of€non„registration€should€provide€Ô_ÔdisaggregatedÔ_Ô€figuresÐ I Ðfor€enterprises€with€less€than€five€employees€as€well€as€for€enterprises€with€five€andÏmore€employees.Ð ø "ø " ÐÌ5.à0 ø àCountries,€which€include€agricultural€activities,€should€provide€figures€separately€forÐ  À Ðagricultural€and€non„agricultural€activities.Ð ø "ø " ÐÌ6.à0 ø àCountries€should€include€persons€engaged€in€professional€or€technical€activities€if€theyÐ Ù  Ðmeet€the€criteria€of€the€informal€sector€definition.Ð ø "ø " ÐÌ7.à0 ø àCountries€should€include€paid€domestic€services€unless€these€are€provided€byÐ ©`  Ðemployees.Ð ø "ø " ÐÌ8.à0 ø àCountries€should€follow€paragraph€18€of€the€Resolution€adopted€by€the€15th€Ô_ÔICLSÔ_ÔÐ y0  Ðregarding€the€treatment€of€Ô_ÔoutworkersÔ_Ô/Ô_ÔhomeworkersÔ_Ô.€€Countries€should€provideÏfigures€separately€for€Ô_ÔoutworkersÔ_Ô/Ô_ÔhomeworkersÔ_Ô€included€in€the€informal€sector.Ð ø "ø " ÐÌ9.à0 ø àCountries€covering€urban€as€well€as€rural€areas€should€provide€figures€separately€forÐ 9ð Ðboth€urban€and€rural€areas.Ð ø "ø " ÐÌ10.à0 ø àCountries€using€household€surveys€or€mixed€surveys€should€make€an€effort€to€coverÐ  À Ðnot€only€persons€whose€main€job€is€in€the€informal€sector,€but€also€those€whose€mainÏjob€is€in€another€sector€and€who€have€a€secondary€activity€in€the€informal€sector.Ð ø "ø " ÐÌ11.à0 ø àThe€Group€hopes€that€it€will€be€possible€to€enlarge€this€subset.ðð€(Central€StatisticalРɀ ÐOrganisation,€1999)€Ð ø "ø " ÐÌÌà ø àThus,€building€upon€the€framework€set€by€the€15th€Ô_ÔICLSÔ_Ô,€the€Delhi€Group€has€beenÏsuccessful€in€formulating€recommendations€with€a€view€to€achieving€a€greater€degree€ofÏharmonization€of€national€definitions€of€the€informal€sector.€€Substantial€progress€has€been€madeÏby€the€Group€on€a€number€of€the€issues€involved,€including€the€specification€of€the€criterion€ofÏsmall€size€in€terms€of€employment,€and€the€treatment€of€paid€domestic€workers.€€However,€if€theÏaim€were€to€arrive€at€fully€harmonized€definitions,€a€considerable€amount€of€additional€workÏwould€need€to€be€done€at€the€international€and€national€levels.ÌññÔ#†)X1bX XjX¡kî#ÔññÌÌò òIII.à ø àSURVEY€METHODS€FOR€INFORMAL€SECTOR€DATA€COLLECTIONó óÐ ù)°"% ÐÌÑ€ZÑò òA.à ø àIntroductionó óÐ Ù+$' ÐÌà ø àIt€is€most€obvious€that€due€to€its€very€nature€the€informal€sector€does€not€easily€lendÏitself€to€statistical€measurement.€€This€is€because€the€informal€sector€encompasses€a€variety€ofÏactivities€with€different€modes€of€operation,€because€the€number€of€informal€sector€units€to€beÐ ™/P(+ ÐÑZÑâ Zâѱ±Ñщ‰Ñâ ZâÑ  Ñsurveyed€is€large€in€many€countries,€and€because€these€units€are€often€characterised€by€featuresÏwhich€make€their€statistical€measurement€difficult.€€These€include€their€small€size,€high€mobilityÏand€turnover,€seasonal€variations€in€business€activity,€clustering€in€specific€areas,€lack€ññÐ  ) à ÐññofÏrecognisable€features€for€identification/location,€lack€of€usable€records,€possible€reluctance€toÏsurvey€participation,€etc.ÌÌà ø àFor€these€reasons,€it€was€often€believed€in€the€past€that€informal€sector€units€and€theirÏactivities€were€unmeasurable,€and€that€data€collection€on€the€informal€sector€was€henceÏimpossible.€€Apart€from€approximate€estimates€of€informal€sector€employment€based€onÏcombinations€of€data€on€industry,€occupation€and€status€in€employment€as€provided€byÏpopulation€censuses€or€labour€force€surveys,€information€on€employment€and€value€added€in€theÏinformal€sector€used€to€be€obtained€in€the€past€mainly€through€methods€of€indirectÏmacroeconomic€estimation€or€the€comparative€analysis€of€data€from€different€sources.€€However,Ïsuch€indirect€methods€were€frequently€criticised€as€being€too€approximate€and€hypothetical.€ÏThey€depend€heavily€on€the€assumptions€made€and€on€the€coverage€and€quality€of€the€data€used.€ÏThey€tend€to€include€components€that€are€outside€the€scope€of€the€informal€sector,€such€asÏstatistically€unrecorded,€hidden€or€illegal€activities€of€other€parts€of€the€economy,€and€thus€doÏnot€identify€the€informal€sector€specifically.€€Moreover,€they€yield€highly€aggregatedÏmacroeconomic€estimates€which€do€not€provide€information€either€about€the€composition€of€theÏinformal€sector€or€about€the€way€it€functions€as€it€is€needed€for€policy€purposes.ÌÌà ø àMore€comprehensive,€reliable€and€detailed€information€on€the€informal€sector€can€beÏobtained€only€by€means€of€direct€measurement€through€surveys.€€Recent€experience€made€in€aÏnumber€of€countries€has€meanwhile€shown€that€it€is€indeed€possible€to€obtain€statistical€data€onÏthe€informal€sector€through€various€types€of€surveys,€provided€the€survey€design€and€operationsÏare€adapted€to€the€particular€characteristics€of€the€informal€sector.€This€may€require€modificationsÏof€traditional€survey€methods€or€even€the€development€of€new€methods.ÌÌà ø àAs€shown€below,€it€is€the€measurement€objectives€which€determine€the€survey€methodÏto€be€used,€and€a€combination€of€methods€can€be€useful€for€development€of€a€comprehensiveÏprogramme€of€informal€sector€data€collection.ÌÌÌò òB.à ø àHousehold€surveysó óÐ 9&ð! ÐÌà ø àIf€the€aim€is€to€monitor€the€evolution€of€informal€sector€employment€in€terms€of€theÏnumber€and€characteristics€of€the€persons€involved€and€the€conditions€of€their€employment€andÏwork,€it€suffices€to€include€periodically€in€existing€labour€force€or€other€household€surveys€a€fewÏadditional€questions€pertaining€to€the€informal€sector€definition€and€the€characteristics€ofÏinformal€sector€employment.€€These€questions€should€be€asked€in€respect€of€all€persons€employedÏduring€the€reference€period€of€the€survey,€irrespective€of€their€status€in€employment,€and€inÏrespect€of€their€main€and€secondary€jobs.€€In€this€way,€it€is€possible€to€collect€comprehensive€dataÏon€informal€sector€employment€and€to€obtain€information€on€the€conditions€of€employment€andÏwork€from€all€categories€of€informal€sector€workers,€including€employees€and€contributingÐ ™/P(+ Ðfamily€workers.€€Moreover,€data€on€the€volume€and€characteristics€of€employment€in€the€informalÏsector€can€be€collected€along€with€corresponding€data€on€employment€in€other€sectors€and€onÏunemployment€as€obtained€from€the€same€source,€and€data€on€informal€sector€employment€canÏbe€related€at€the€micro„level€to€other€information€collected€in€the€same€survey.€€The€additionalÏcost€for€the€measurement€of€informal€sector€employment€is€relatively€low.€€The€Fifteenth€Ô_ÔICLSÔ_ÔÏrecommended€that€the€evolution€of€informal€sector€employment€should€be€monitored€throughÏmeasurement€once€a€year,€if€possible.ÌÌà ø àIn€order€to€ensure€that€all€informal€sector€activities€are€covered,€it€will€often€beÏnecessary€to€make€special€probes€on€activities€that€might€otherwise€go€unreported,€such€as€unpaidÏwork€in€small€family€enterprises,€activities€undertaken€by€women€on€their€own€account€at€or€fromÏhome,€undeclared€activities€and€informal€sector€businesses€conducted€as€secondary€jobs€byÏfarmers,€government€officials€or€employees€of€the€private€formal€sector.€€In€order€to€captureÏadequately€the€work€of€children€in€the€informal€sector,€it€may€also€be€necessary€to€lower€theÏminimum€age€limit€which€the€surveys€use€for€measurement€of€the€economically€activeÏpopulation.€€In€designing€or€re„designing€the€survey€sample,€care€should€be€taken€to€include€anÏadequate€number€of€sample€areas€where€informal€sector€workers€live.€€ÌÌà ø àWhen€using€labour€force€or€other€household€surveys€for€the€measurement€of€informalÏsector€employment,€one€needs€to€be€aware€of€certain€limitations.€€(Ô_ÔiÔ_Ô)€Informal€sector€employmentÏis€measured€as€part€of€total€employment€which,€in€most€cases,€is€measured€in€relation€to€a€shortÏreference€period,€such€as€one€week;€as€many€informal€sector€activities€are€characterized€byÏseasonal€and€other€variations€over€time,€data€on€informal€sector€employment€obtained€in€respectÏof€a€short€reference€period€are€unlikely€to€be€representative€for€the€whole€year.€€There€mayÏtherefore€be€a€need€to€improve€the€representativeness€in€the€time€dimension€in€repeating€theÏmeasurement€of€informal€sector€employment€at€different€times€during€the€year€in€the€case€ofÏquarterly€or€monthly€surveys,€or€in€using€a€longer€reference€period€such€as€one€year€in€the€caseÏof€annual€or€less€frequent€surveys.€€(ii)€An€estimation€of€the€number€of€informal€sectorÏenterprises€is€difficult,€if€not€impossible.€€(iii)€The€application€of€the€informal€sector€definitionÏmay€pose€problems€in€the€case€of€employees,€contributing€family€workers€and€proxyÏrespondents,€who€usually€have€only€limited€knowledge€of€the€characteristics€of€the€enterprisesÏin€question,€including€the€characteristics€relating€to€the€definition€of€the€informal€sector.€€(iv)€TheÏpossibilities€for€Ô_ÔdisaggregationÔ_Ô€of€the€data€on€informal€sector€employment€depend€on€the€sampleÏsize€and€design.ÌÌÌà ø àIf€the€measurement€objectives€are€to€collect€detailed€structural€information€on€theÏcomposition€of€the€informal€sector€in€terms€of€the€number€and€characteristics€of€the€businessesÏinvolved,€and€to€obtain€data€for€an€in„depth€examination€of€the€production€activities,Ïemployment,€income€generation€and€capital€equipment€of€informal€sector€enterprises,€theÏconditions€and€constraints€under€which€they€operate,€their€organisation€and€relationships€withÏthe€formal€sector€and€the€public€authorities,€etc.,€surveys€are€required€in€which€the€informalÏsector€businesses€themselves€and€their€owners€are€the€observation€and€reporting€units.€€AccordingÏto€the€Fifteenth€Ô_ÔICLSÔ_Ô€resolution,€such€surveys€should€be€conducted€every€five€years,€if€possible.€Ð ™/P(+ ÐFor€this€purpose,€various€kinds€of€survey€arrangements€may€be€chosen,€depending€upon€the€dataÏrequirements€of€countries,€the€organisation€of€their€statistical€systems,€and€the€amount€ofÏresources€available:€establishment€surveys,€mixed€household€and€enterprise€surveys,€or€aÏcombination€of€these.ÌÌÌò òC.à ø àEstablishment€surveysó óÐ é   ÐÌà ø àThe€establishment€survey€approach€pre„supposes€the€availability€of€a€sampling€frameÏfor€informal€sector€establishments.€€Establishment€surveys€of€informal€sector€units€can€thereforeÏonly€be€conducted€in€conjunction€with€censuses€of€informal€sector€establishments€or,€preferably,Ïgeneral€establishment€or€economic€censuses€which€cover€all€establishments€in€the€relevantÏbranches€of€economic€activity€and€contain€the€items€required€for€identification€of€informal€sectorÏunits.€€If€the€informal€sector€survey€is€conducted€immediately€after€the€census,€the€census€listsÏcan€be€used€as€a€list€frame€for€selection€of€a€sample€of€informal€sector€establishments.€€If€theÏinformal€sector€survey€is€to€be€conducted€later,€data€from€the€last€establishment€or€economicÏcensus€can€still€be€used€to€construct€an€area€sampling€frame€for€the€selection€of€sample€areas,Ïaccount€being€taken€of€the€density€of€informal€sector€establishments€of€various€types€in€theÏcensus€enumeration€areas.€€In€this€case,€systematic€updating€of€the€lists€of€establishments€in€theÏsample€areas€is€usually€required€prior€to€the€selection€of€the€final€sampling€units€(multi„stageÏdesign).ÌÌÑ€g/JÑà ø àEstablishment€or€economic€censuses€are€large„scale,€costly€operations€which€manyÏcountries,€due€to€resource€constraints,€cannot€undertake€or€undertake€only€in€the€major€urbanÏareas.€€There€is€also€the€problem€of€achieving€a€complete€coverage€of€the€informal€sector,€withoutÏomissions€or€duplications,€in€establishment€censuses€and€surveys.€€Many€informal€sectorÏbusinesses€are€difficult€to€identify€and€locate€because€they€lack€recognisable€business€premises;Ïexamples€are€activities€conducted€inside€the€business€owner's€home€(e.g.€tailoring,€foodÏprocessing)€or€without€fixed€location€(e.g.€construction,€transport,€ambulant€trade).€€UnlessÏsubstantial€particular€efforts€are€made,€such€activities€are€likely€to€be€omitted€in€establishmentÏcensuses€and€surveys.€€One€such€effort,€which€has€proven€to€be€efficient€and€cost„effective€in€aÏnumber€of€countries€(e.g.€India),€is€the€conduct€of€an€establishment€or€economic€censusÏconcurrently€with€the€house„listing€operation€for€a€population€census.€€(It€should€be€noted€thatÏthis€and€similar€efforts€to€improve€the€coverage€of€home„based€and€mobile€activities€are€basedÏon€some€combination€of€an€establishment„survey€approach€with€a€household„survey€approach;Ïthey€represent€thus€a€step€towards€the€mixed€household€and€enterprise€surveys€discussed€below.)ÌÌà ø àMoreover,€because€information€is€collected€separately€for€each€establishment,€it€mayÏbe€difficult€to€reveal€the€linkages€between€several€informal€sector€activities€undertaken€by€theÏsame€individuals€or€households,€and€to€consolidate€the€data€at€the€enterprise€or€household€level;Ïthere€may€be€double„counting€of€activities€in€cases€where,€for€example,€some€members€of€aÏfamily€produce€goods€in€a€small€workshop€or€at€home,€and€other€members€of€the€same€familyÏsell€these€goods€in€a€market€or€street€stall.€€Notwithstanding€these€limitations,€establishmentÏsurveys€remain€to€be€a€useful€and€efficient€method€of€data€collection€on€the€"upper"€segments€Ð  ™/P(+ Ðof€the€informal€sector€(identifiable€establishments),€which€are€often€the€main€target€groups€ofÏsmall€enterprise€development€programmes.ÌÌÌò òD.à ø àMixed€household€and€enterprise€surveysó óÐ  À ÐÌà ø àIf€the€aim€is€to€collect€comprehensive€data€on€the€informal€sector€as€a€whole€and€theÏvarious€segments€it€is€composed€of,€mixed€household€and€enterprise€surveys€have€shown€to€beÏthe€most€suitable€approach.€€This€is€because€it€is€relatively€easy€in€such€surveys€to€cover€allÏinformal€sector€entrepreneurs€(except€homeless€persons)€and€their€activities€irrespective€of€theÏsize€of€the€businesses,€the€kind€of€activity€and€the€type€of€workplace€used,€including€activitiesÏundertaken€inside€the€business€owner's€home€or€without€fixed€location,€and€irrespective€ofÏwhether€it€is€their€main€or€a€secondary€job.€€Mixed€household€and€enterprise€surveys€are€basedÏon€area€sampling€and€conducted€in€two€phases.€€In€the€first€phase,€a€comprehensive€samplingÏframe€for€informal€sector€enterprises€is€obtained€through€a€household€listing€or€survey€operationÏin€selected€sample€areas,€during€which€all€businesses€falling€within€the€scope€of€the€survey€andÏtheir€owners€are€identified€(household€survey€component).€€In€the€second€phase,€all€or€a€sampleÏof€the€business€owners€are€interviewed€in€order€to€obtain€detailed€information€on€their€ownÏcharacteristics€and€those€of€their€businesses€and€workers,€if€applicable€(enterprise€surveyÏcomponent).€€As€information€during€the€first€survey€phase€often€has€to€be€obtained€fromÏhousehold€members€other€than€the€business€owners€themselves€(proxy€respondents),€it€isÏnormally€not€possible€at€this€stage€to€obtain€good€quality€data€in€respect€of€all€the€criteria€of€theÏinformal€sector€definition.€€In€order€to€ensure€a€complete€coverage,€it€is€therefore€preferableÏduring€the€first€survey€phase€to€identify€the€owners€of€all€businesses€which€potentially€form€partÏof€the€informal€sector.€€On€the€basis€of€the€data€collected€during€the€second€survey€phase,Ïinformal€sector€businesses€can€later€on€be€identified€more€specifically€(post„samplingÏidentification).ÌÌà ø àMixed€household€and€enterprise€surveys€make€it€possible€to€Ô_ÔanalyzeÔ_Ô€jointly,€at€theÏenterprise€or€household€level,€the€various€kinds€of€informal€sector€activities€undertaken€by€theÏsame€individuals€or€households.€€Moreover,€data€on€the€characteristics€of€the€informal€sectorÏactivities€and€business€owners€can€be€related€to€the€characteristics€of€the€business€owners'Ïhouseholds€as€obtained€from€the€same€survey,€which€is€important,€in€particular,€for€assessmentÏof€the€contribution€of€other€household€members€to€the€household€income€and€for€analysis€of€theÏimpact€of€the€household€situation€on€the€activities€of€women€and€children€working€as€informalÏsector€entrepreneurs.ÌÌÌò ò1.à ø àIndependent€informal€sector€surveysó óÐ é* #& ÐÌà ø àMixed€household€and€enterprise€surveys€can€be€conceived€either€as€independentÏinformal€sector€surveys€or€as€informal€sector€modules€attached€to€existing€labour€force€or€otherÏhousehold€surveys.€€In€many€cases,€an€independent€survey€is€technically€the€better€arrangementÏbecause€its€sample€can€be€specifically€designed€and€selected€to€meet€the€requirements€of€informalÐ ™/P(+ Ðsector€measurement,€i.e.€inclusion€of€the€various€types€of€informal€sector€businesses,€for€whichÏreliable€separate€estimates€are€needed,€in€adequate€number€in€the€final€sample.€€This€aspect€isÏimportant€if€one€wants€to€be€able€to€Ô_ÔanalyzeÔ_Ô€the€differences€between€various€segments€of€theÏinformal€sector€regarding€their€income„generating€potential,€constraints€and€other€characteristics.ÌÌà ø àIndependent€informal€sector€surveys€using€the€mixed€household€and€enterprise€surveyÏapproach€are€based€on€a€multi„stage€design€involving€the€following€steps:€(1)€selection€of€sampleÏareas;€(2)€household€listing;€(3)€selection€of€sample€households€with€owners€of€(potential)Ïinformal€sector€businesses;€and€(4)€main€interviewing€of€sample€households€and€businessÏowners.€€Sample€allocation€and€selection€at€the€first€and/or€second€stage€of€sampling€should€beÏmade€according€to€the€density€of€informal€sector€entrepreneurs€and€type€of€activity€(stratifiedÏsampling).€€The€sample€design€must€take€into€consideration€that€some€types€of€informal€sectorÏactivities€(e.g.€transport,€repair€and€other€services)€are€likely€to€be€less€well€represented€in€theÏuniverse€than€others€(e.g.€trade,€cooked€food€sale).€€There€are€also€informal€sector€activities€(e.g.Ïcertain€types€of€manufacturing)€which€tend€to€be€concentrated€in€specific€areas.€€With€a€view€toÏensuring€an€adequate€representation€of€all€such€activities€in€the€sample€and€reducing€clusteringÏeffects,€it€is€important€to€include€a€sufficient€number€of€sample€areas€(Ô_ÔPSUsÔ_Ô)€in€the€sample.€€ForÏallocation€and€selection€of€the€Ô_ÔPSUsÔ_Ô,€an€area€sampling€frame€should€be€used€consisting€ofÏenumeration€areas€of€appropriate€size,€stratified€according€to€the€density€of€informal€sectorÏactivities€of€different€types€or,€at€least,€according€to€the€overall€density€of€informal€sector€activityÏin€these€areas.€€All€available€information€should€be€used€for€the€construction€of€such€a€frame,Ïincluding€data€obtained€from€the€latest€population€census€on€the€density€of€employers€and€own„¼account€workers€in€the€enumeration€areas€classified€by€broad€activity€groups€(and,€if€available,Ïby€type€of€workplace€and€number€of€employees),€data€on€the€concentration€of€smallÏestablishments€as€obtained€from€the€latest€establishment€or€economic€census,€a€stratification€ofÏenumeration€areas€by€income€level€or€other€Ô_ÔsocioÔ_Ô„economic€criteria€as€made€for€the€selection€ofÏhousehold€master€or€survey€samples,€relevant€information€obtained€during€listing€or€dataÏcollection€for€previous€informal€sector€or€other€surveys,€and€local€expert€knowledge€about€theÏspatial€distribution€of€informal€sector€activities€in€the€towns€to€be€covered€by€the€survey.€€TheseÏshould€normally€provide€a€reasonably€good€approximation€of€the€density€of€informal€sectorÏentrepreneurs€living€in€the€enumeration€areas€at€the€time€of€the€survey.€€Enumeration€areas€withÏa€high€density€of€informal€sector€entrepreneurs€in€the€relevant€activity€groups€should€then€beÏselected€at€a€higher€rate€in€order€to€obtain€more€of€the€sample€from€such€areas,€increase€samplingÏefficiency,€and€reduce€survey€cost.€€The€cost€aspect€is€particularly€important€in€respect€of€theÏhousehold€listing€which€is€an€expensive€operation€unless€it€can€be€combined€with€listing€forÏanother€survey.€€If€more€of€the€sample€is€obtained€from€areas€with€a€high€density€of€informalÏsector€entrepreneurs,€the€number€of€households€to€be€listed€can€be€reduced€in€relation€to€theÏnumber€of€households€included€in€the€final€sample.ÌÌà ø àIn€an€independent€informal€sector€survey,€the€first€survey€phase€is€confined€to€a€listingÏof€households€in€the€sample€areas.€€The€quality€of€listing€is€a€key€factor€for€the€overall€qualityÏof€estimates€obtained€from€such€a€survey.€€All€households€in€the€sample€areas€have€to€be€listed,Ïand€all€potential€informal€sector€entrepreneurs€and€businesses€of€these€households€to€beÏidentified.€€As€a€household€listing€approach€may€fall€short€of€ensuring€a€complete€coverage€ofÐ ™/P(+ Ðinformal€sector€activities€conducted€in€identifiable€establishments€outside€the€home€of€theÏbusiness€owner,€some€countries€(e.g.€the€Philippines)€have€undertaken€a€dual,€mutually€exclusiveÏlisting€of€(Ô_ÔiÔ_Ô)€households€and€household„based€business€operators€and€(ii)€establishments€in€theÏsample€areas.ÌÌà ø àDuring€the€first€phase€of€an€independent€informal€sector€survey,€data€on€the€kind€ofÏactivity€and€other€basic€characteristics€of€the€businesses€must€be€collected€as€needed€for€theÏstratification€and€selection€of€the€final€sample€of€households.€€For€purposes€of€sample€selectionÏand€weighting,€it€is€easier€if€a€single€activity€code€is€assigned€to€each€household.€€The€codeÏdetermines€the€activity€stratum€into€which€the€household€is€classified;€in€assigning€it,€priority€canÏbe€given€to€activities€less€well€represented€in€the€universe€so€as€to€increase€the€number€of€suchÏactivities€in€the€final€sample.€€(However,€once€a€household€is€selected€into€the€final€sample,Ïinformation€should€be€collected€during€the€second€survey€phase€on€all€informal€sector€activitiesÏundertaken€by€the€members€of€this€household.)€€The€sample€households€then€use€to€be€selectedÏin€using€differential€sampling€fractions€for€the€various€activity€strata.€€The€aim€is€to€make€theÏallocation€of€the€final€sample€to€the€various€strata€as€homogeneous€as€possible€and€to€ensure€thatÏan€adequate€number€of€households€from€each€stratum€is€included.Ì€€Ìà ø àThe€design€of€an€independent€informal€sector€survey€entails€fairly€complex€surveyÏoperations€and€sample€weighting/estimation€procedures.€€It€requires€a€team€of€qualified€surveyÏstaff,€sound€training€of€interviewers,€constant€supervision€and€control€of€all€survey€operations,Ïand€care€in€keeping€records€of€the€listing€operation,€sample€selection€and€sample€outcome€forÏeach€sample€area.ÌÌÌò ò2.à ø àInformal€sector€modules€attached€to€household€surveysó óÐ ¹p ÐÌà ø àAttachment€of€an€informal€sector€module€to€an€existing€household€survey€means€thatÏthe€informal€sector€survey€sample€is€obtained€as€a€sub„sample€of€the€base€survey.€€The€informalÏsector€survey€may€be€conducted€simultaneously€with€the€base€survey€or€consecutively.€€ForÏpractical€reasons,€the€consecutive€arrangement€is€preferred€in€most€cases,€as€it€(Ô_ÔiÔ_Ô)€facilitates€theÏmanagement€and€coordination€of€the€two€surveys,€(ii)€ensures€that€the€survey€operations€for€theÏbase€survey€can€proceed€smoothly,€(iii)€is€unlikely€to€have€a€negative€impact€on€the€quality€ofÏthe€base€survey€data,€and€(iv)€provides€a€better€control€over€the€identification€and€selection€of€theÏsub„sample€for€the€informal€sector€survey.ÌÌà ø àThe€modular€approach€was€first€developed€by€statistical€offices€of€Latin€AmericanÏcountries€with€technical€assistance€from€the€ILO€Regional€Programme€for€Employment€in€LatinÏAmerica€and€the€Caribbean€(Ô_ÔPREALCÔ_Ô).€€It€is€less€complex€and€less€expensive€than€the€conductÏof€an€independent€informal€sector€survey,€because€information€collected€during€the€base€surveyÏprovides€the€basis€for€the€identification€and€selection€of€the€sub„sample€of€households€or€personsÏfor€the€informal€sector€survey,€and€no€special€household€listing€is€required.€€However,€theÏmodular€approach€can€only€be€used€in€situations€where€a€suitable€base€survey€(such€as€a€labourÏforce€survey€or€a€household€income€and€expenditure€survey)€exists,€and€where€it€is€feasible,€inÐ ™/P(+ Ðterms€of€survey€operations€and€response€burden,€to€combine€data€collection€on€the€informalÏsector€with€data€collection€on€another€topic.€€As€in€the€case€of€household€surveys€for€theÏmeasurement€of€informal€sector€employment,€the€representativeness€of€the€data€in€terms€of€timeÏdepends€on€the€reference€period€of€the€base€survey.€€Moreover,€the€modular€approach€may€haveÏcertain€limitations€resulting€from€the€fact€that€the€base€survey€samples€were€usually€not€designedÏand€selected€for€the€purpose€of€informal€sector€measurement,€neither€at€the€level€of€sample€areasÏnor€at€the€level€of€sample€households.€€The€number€of€informal€sector€entrepreneurs€included€inÏthe€sample€may€therefore€be€quite€small,€and€insufficient€to€yield€reliable€separate€estimates€forÏeach€type€of€informal€sector€activity€for€which€such€estimates€would€be€desirable.€€There€is€noÏcontrol€over€the€distribution€of€the€informal€sector€survey€sample€by€type€of€activity€and€itsÏrepresentativeness.€€There€are,€of€course,€ways€to€increase€the€size€of€the€informal€sector€surveyÏsample.€€If€the€information€required€for€identification€of€the€units€eligible€for€the€informal€sectorÏsurvey€is€obtained€during€the€listing€operation€for€the€base€survey,€the€informal€sector€surveyÏsample€can€be€selected€on€the€basis€of€all€households€in€the€sample€areas,€rather€than€only€thoseÏselected€for€the€base€survey€sample.€€Alternatively,€if€resources€permit,€the€base€survey€sampleÏmay€be€increased€by€adding€appropriately€chosen€supplementary€sample€areas€to€it;€in€this€way,Ïthe€sample€design€will€most€likely€be€improved€not€only€for€informal€sector€measurement€butÏalso€for€the€base€survey€itself.ÌÌà ø àFrom€the€methodological€point€of€view,€the€strengths€of€the€modular€approach€lie€inÏits€possibilities€(Ô_ÔiÔ_Ô)€to€monitor€changes€of€the€informal€sector€over€time,€if€the€base€survey€isÏconducted€regularly€and€an€informal€sector€module€attached€to€it€periodically€at€sufficientlyÏfrequent€intervals;€(ii)€to€achieve€a€complete€coverage€and€accurate€identification€of€(potential)Ïinformal€sector€entrepreneurs€in€the€sample€households€during€the€base€survey€interviews,Ïparticularly€if€a€labour€force€survey€is€used€for€this€purpose;€(iii)€to€use€for€the€informal€sectorÏsurvey€data€the€sampling€weights€of€the€base€survey€and€thereby€facilitate€the€estimation€of€theÏsurvey€results;€and€(iv)€to€relate€data€on€the€informal€sector€activities€to€data€obtained€from€theÏbase€survey.ÌÌÌò òE.à ø àMeans€to€improve€contact/response€rates€and€data€qualityó óÐ i#  ÐÌà ø àTo€our€knowledge,€a€systematic€evaluation€of€data€quality€has€never€been€made€forÏany€informal€sector€survey€conducted€until€now.€€A€characteristic€(and€for€statisticians€annoying)Ïfeature€of€many€informal€sector€businesses€is€their€high€mobility€and€turnover.€€In€order€to€reduceÏnon„contact€rates€and€distortions€of€the€survey€data€resulting€from€sample€units€that€have€movedÏto€a€new€location€or€changed€or€stopped€their€activity,€the€time€interval€between€the€two€surveyÏphases€(listing/identification€and€main€interviewing)€should€be€kept€as€short€as€possible.€€InÏaddition,€every€possible€effort€should€be€made€to€trace€sample€units€at€their€new€location.€€AÏreplacement€by€other€units€should€be€avoided.€€Another€useful€means€of€increasing€contact€rates,Ïas€well€as€the€quality€of€the€data€obtained,€is€to€interview,€to€the€extent€possible,€those€informalÏsector€entrepreneurs,€who€conduct€their€business€in€fixed€Ð  ¹-p&) Ðlocations€outside€their€home,€at€their€actual€place€of€work€rather€than€the€place€of€residence€ofÏtheir€household.€€This€applies€to€mixed€household€and€enterprise€surveys,€in€particular.ÌÌà ø àMost€informal€sector€entrepreneurs€have€a€low€level€of€education€and€do€not€keepÏ(usable)€written€records€of€their€activities.€€They€are€not€used€to€participate€in€statistical€surveysÏand€often€not€willing€to€devote€much€time€to€it.€€Some€are€difficult€to€contact€anywhere€becauseÏthey€operate€without€fixed€location€(e.g.€ambulant€vendors,€taxi€drivers,€building€craftsmen).€ÏThere€may€also€be€a€certain€number€of€respondents€who€are€reluctant€to€answer€the€surveyÏquestions€for€fear€of€subsequent€taxation€or€harassment€by€the€authorities.€€Under€theseÏconditions,€it€is€essential€to€make€provisions€which€help€to€improve€response€rates€and€dataÏquality€in€informal€sector€surveys.€€These€include:€advance€information€of€respondents€regardingÏthe€survey€and€its€purposes;€a€formal€assurance€of€confidentiality€of€the€data€provided;€choiceÏof€the€date,€time€and€place€of€the€interviews€in€consultation€with€the€respondents€themselves;Ïsound€motivation,€training€and€supervision€of€interviewers;€establishment€of€good€humanÏrelations€between€interviewers€and€respondents;€design€of€survey€questionnaires€which€areÏmanageable€in€the€field€in€terms€of€content€and€length,€and€which€are€easy€to€follow€andÏcomplete€by€interviewers;€second€visits€to€respondents,€if€necessary;€formulation€of€questionsÏin€a€way€which€is€understandable€by€respondents,€and€which€refers€to€their€specific€situation€andÏthe€nature€of€their€activities;€and€use€of€short€reference€periods€which€enable€respondents€toÏprovide€the€required€information€with€sufficient€accuracy.ÌÌÌò òF.à ø àSeasonal€variations€and€estimation€of€annual€valuesó óÐ é  ÐÌà ø àMany€informal€sector€activities€are€subject€to€seasonal€and€other€variations€over€time;Ïhence€the€question€arises€of€how€to€capture€such€variations,€and€to€estimate€annual€values€asÏneeded€for€national€accounting€and€other€purposes,€through€an€informal€sector€survey.€€As€theÏuse€of€short€reference€periods€is€imperative,€and€repeated€interviews€with€the€same€respondentsÏat€different€times€of€the€year€are€hardly€possible,€such€variations€are€captured€most€accurately€atÏthe€aggregate€level,€in€spreading€data€collection€over€a€period€of€a€whole€year€by€dividing€theÏsurvey€sample€into€independent€sub„samples€for€different€parts€of€the€year.ÌÌà ø àFor€various€reasons€(including€the€lack€of€human€and€financial€resources)€it€is€oftenÏnot€possible€to€capture€seasonal€and€other€variations€in€informal€sector€activities€at€the€aggregateÏlevel€as€described€above.€€In€such€situations,€one€possible€way€of€measuring€such€variations€andÏof€estimating€annual€values€is€measurement€at€the€individual€level,€through€data€collection€inÏrespect€of€short€reference€periods€supplemented€with€questions€on€the€intensity€of€businessÏactivity€during€each€month€of€the€year€and€on€the€average€level€of€receipts/profits€in€months€ofÏhigh/low€business€activity€as€a€percentage€of€the€average€level€of€receipts/profits€in€months€ofÏnormal€business€activity.ÌÌÌÌò òòòÐ ™/P(+ ÐÑg/JÑâ gâÑ8€)1b)XXdð)XXdð8Ñâ gâÑ  ÑóóReferencesó óÐ I ÐÌCentral€Statistical€Organisation€1999:€€Expert€Group€on€Informal€Sector€Statistics€(DelhiÌà0 ø àGroup),€òòReport€of€the€third€meetingóó€(New€Delhi,€17„19€May€1999),€New€Delhi.€Ð Ðø "ø " ÐÌdu€Jeu,€B.€1999:€€òòEnhancing€the€international€comparability€of€informal€sector€statistics€„€AÐ ù ° Ðà0 ø àreview€of€national€definitions€of€the€informal€sector€and€a€proposal€of€a€harmonizedÏdefinition€for€international€reportingóó,€Paper€presented€to€the€Third€Meeting€of€theÐ Ù  ÐExpert€Group€on€Informal€Sector€Statistics€(Delhi€Group),€New€Delhi,€17„19€MayÏ1999.Ð ø "ø " ÐÌÔ_ÔHussmannsÔ_Ô,€R.€1996:€"ILO€recommendations€on€methodologies€concerning€informal€sectorÌà0 ø àdata€collection"€in:€Herman,€B.€and€Ô_ÔStoffersÔ_Ô,€W.€(eds.):€òòUnveiling€the€informal€sector€„Ð ‰@  ÐMore€than€counting€headsóó€(Aldershot/Brookfield/Hong€Kong/Singapore/€Sydney,Ð y0  ÐÔ_ÔAveburyÔ_Ô),€pp.€15„29.Ð ø "ø " ÐÌÔ_ÔHussmannsÔ_Ô,€R.€1996:€€òòData€collection€on€small€economic€units€of€the€informal€sectoróó,€Paper€Ð I Ðà0 ø àpresented€to€the€Ô_ÔUNSDÔ_Ô/Ô_ÔECAÔ_Ô€Workshop€on€services€in€the€informal€sector€in€Africa,ÏAddis€Ababa,€17„21€June€1996.Ð ø "ø " ÐÌÔ_ÔHussmannsÔ_Ô,€R.€1999:€€òòIssues€relating€to€the€international€definition€of€the€informal€sector€and€Ð  À Ðà0 ø àtheir€impact€on€the€international€comparability€of€informal€sector€statisticsóó,€Paper€Ð ù° Ðpresented€to€the€Third€Meeting€of€the€Expert€Group€on€Informal€Sector€StatisticsÏ(Delhi€Group),€New€Delhi,€17„19€May€1999.€€€Ð ø "ø " ÐÌInternational€Labour€Office€1991:€òòThe€dilemma€of€the€informal€sectoróó,€Report€of€the€Ð ¹p Ðà0 ø àDirector„General€(Part€I),€International€Labour€Conference,€78th€Session€1991,ÏGeneva.Ð ø "ø " ÐÌInternational€Labour€Office€1992:€€Fifteenth€International€Conference€of€Labour€StatisticiansÌà0 ø à(Geneva,€19„28€January€1993),òò€Report€III:€Statistics€of€employment€in€the€informalÐ i#  Ðsectoróó,€doc.€Ô_ÔICLSÔ_Ô/15/III,€Geneva.ÐY$ø "ø " ÐÌInternational€Labour€Office€1993:€€Fifteenth€International€Conference€of€Labour€StatisticiansÌà0 ø à(Geneva,€19„28€January€1993),€òòReport€of€the€conferenceóó,€doc.€Ô_ÔICLSÔ_Ô/15/D.6€(rev.1),Ð )'à" ÐGeneva.Ð ø "ø " ÐÌInternational€Labour€Office€1998:€€òòDevelopments€in€the€design€and€implementation€of€informalÐ ù)°"% Ðà0 ø àsector€and€similar€surveys€„€A€review€of€national€practices€and€experiencesóó,€SixteenthÐ é* #& ÐInternational€Conference€of€Labour€Statisticians€(Geneva,€6„15€October€1998),€doc.ÏÔ_ÔICLSÔ_Ô/16/RD2,€Geneva.Ð ø "ø " ÐÌÔ_ÔSethuramanÔ_Ô,€Ô_ÔS.V.Ô_Ô€1988:€"Informal€sector:€myth€or€reality?"€in:€òòÔ_ÔWEPÔ_Ô€Newsletteróó,€No.€30,€Ð ©.`'* Ðà ø àMarch€1988€(Geneva,€ILO).Ð  ™/P(+ ÐÌÌÌÌÌà@ûû8^àò òANNEXó óˆÐ ù ° ÐññÔ#†)X1bXXjXVíÌÙ#ÔññÌÌÐ  É€ ÐÌÌà@ÓÓ^àòòFIFTEENTH€INTERNATIONAL€CONFERENCE€OF€LABOUR€STATISTICIANSˆÐ ) à ÐÌÌà@……4^àRESOLUTION€IIˆÌÌóóÌà@Ê Ê (^àò ò€RESOLUTION€CONCERNING€STATISTICS€OFˆÐ É€ Ðó óà@  *^àò òEMPLOYMENT€IN€THE€INFORMAL€SECTORó óˆÐ ¹p  ÐÌÌÌÔ€)ôŒVõX)X1bÔà ø àThe€Fifteenth€International€Conference€of€Labour€Statisticians,Ð y0  ÐÌà ø àHaving€been€convened€at€Geneva€by€the€Governing€Body€of€the€ILO€and€having€met€from€19€to€28ÏJanuary€1993,ÌÌà ø àRecalling€paragraph€33€of€the€resolution€concerning€statistics€of€the€economically€active€population,Ïemployment,€unemployment€and€underemployment€(resolution€I),€adopted€by€the€Thirteenth€Conference€(1982)Ïand€the€resolution€concerning€the€informal€sector€(resolution€VIII),€adopted€by€the€Fourteenth€Conference€(1987),ÌÌà ø àConsidering€that€statistics€on€employment€in€the€informal€sector€are€especially€needed€in€order€toÏimprove€the€statistical€systems€of€countries€where€informal€sector€activities€account€for€a€significant€proportionÏof€total€employment€and€income€generation,ÌÌà ø àObserving€the€development€of€concepts€and€techniques€for€obtaining€and€analysing€such€statistics€inÏa€number€of€countries,ÌÌà ø àRecognizing€that€although€these€concepts€and€techniques€will€be€further€improved€in€the€light€ofÏadditional€experience,€there€is€currently€a€need€for€international€standards€to€provide€technical€guidelines€as€aÏbasis€for€the€development€of€suitable€definitions€and€classifications€of€informal€sector€activities€and€the€design€ofÏappropriate€data€collection€methods€and€programmes,€and€recognizing€the€usefulness€of€such€standards€inÏenhancing€the€international€comparability€of€statistics,ÌÌà ø àAdopts€this€twenty„eighth€day€of€January€1993€the€following€resolution:ÌÌÌò òOBJECTIVESÐ 3'ê& Ðó óÌà ø àò ò1.ó ó€Countries€where€the€informal€sector€plays€a€significant€role€in€employment€and€income€generationÐ Ç(~!( Ðand€economic€and€social€development€should€aim,€where€practicable,€at€developing€a€comprehensive€system€ofÏstatistics€on€employment€in€the€informal€sector€to€provide€an€adequate€statistical€base€for€the€various€users€of€theÏstatistics,€with€account€being€taken€of€specific€national€needs€and€circumstances.€€The€system€to€be€developedÏÑ€]Ñshould€contribute€to€the€improvement€of€labour€statistics€and€Ñ€^Ñnational€accounts€as€an€information€base€forÏmacroeconomic€analysis,€planning,€policy€formulation€and€evaluation,€to€the€integration€of€the€informal€sectorÏinto€the€development€process€and€to€its€Ô_ÔinstitutionalisationÔ_Ô.€€It€should€provide€quantitative€information€on€theÏcontribution€of€the€informal€sector€to€various€aspects€of€economic€and€social€development,€including€employmentÏcreation,€production,€income€generation,€human€capital€formation€and€the€mobilisation€of€financial€resources.€ÏThe€system€may€also€provide€data€for€the€design€and€monitoring€of€specific€support€policies€and€assistanceÐ å/œ(1 ÐÑ ]^Ñâ ]âÑ8€)1b)XXdð)XXdð8Ñâ ^]âÑ8€)1b)XXdð)XXdð8Ñâ ^âÑ  Ñprogrammes€for€the€informal€sector€as€a€whole€or€parts€thereof€with€a€view€to€increasing€the€productive€potentialÐ I Ðand€employmentò ò„ó ó€and€income„Ñ€_Ñgenerating€capacity€of€informal€sector€units,€improving€the€working€conditions€andÐ Ê Ðsocial€and€legal€protection€of€informal€sector€workers,€developing€an€appropriate€regulatory€framework€andÏpromoting€the€organisation€of€informal€sector€producers€and€workers,€and€for€the€analysis€of€the€economic€andÏsocial€situation€of€particular€groups€of€informal€sector€workers€such€as€women,€children,€rural„urban€migrantsÏor€immigrants.ÌÌà ø àò ò2.ó ó€In€order€to€fulfil€the€above€objectives,€comprehensive,€detailed€and€reliable€statistics€should,€asÐ Ó Š Ðfar€as€possible,€be€compiled€on:€€(Ô_ÔiÔ_Ô)€the€total€number€of€informal€sector€units,€classified€by€various€structuralÏcharacteristics€to€provide€information€on€the€composition€of€the€informal€sector€and€identify€particular€segments;€Ï(ii)€total€employment€in€such€units,€including€information€on€the€number€of€persons€engaged€by€Ô_ÔsocioÔ_Ô„demographicÏand€other€characteristics€and€on€the€conditions€of€their€employment€and€work;€€(iii)€production€and€incomesÏgenerated€through€informal€sector€activities,€derived,€where€possible,€from€data€on€outputs,€inputs€and€relatedÏtransactions;€€and€(iv)€other€characteristics€pertaining€to€conditions€under€which€informal€sector€units€are€createdÏand€carry€out€their€activities,€including€their€relationships€with€other€units€inside€and€outside€the€informal€sector.ÌÌà ø àò ò3.ó ó€In€order€to€enhance€their€comparability€and€usefulness,€statistics€on€the€informal€sector€should,Ð ñ¨  Ðas€far€as€possible,€be€compatible€with€other€related€economic€and€social€statistics€and€with€national€accounts€asÏregards€the€definitions,€classifications€and€reference€periods€used.ÌÌà ø àò ò4.ó ó€Statistics€on€the€informal€sector€should€be€compiled€at€regular€intervals€so€that€changes€in€the€sizeÐ Ô Ðand€characteristics€of€the€informal€sector€over€time€can€be€monitored€adequately.€€The€frequency€of€data€collectionÏmay€vary€according€to€the€different€types€of€statistics€mentioned€in€paragraph€2,€survey€methods€required€andÏtheir€implications€for€the€use€of€human€and€financial€resources.ÌÌÌò òCONCEPTó óÐ Ý” ÐÌà ø àò ò5.ó ó€(1)€The€informal€sector€may€be€broadly€characterised€as€consisting€of€units€engaged€in€theÐ q( Ðproduction€of€goods€or€services€with€the€primary€objective€of€generating€employment€and€incomes€to€the€personsÏconcerned.€€These€units€typically€operate€at€a€low€level€of€organisation,€with€little€or€no€division€between€labourÏand€capital€as€factors€of€production€and€on€a€small€scale.€€Labour€relations€„€where€they€exist€„€are€based€mostlyÏon€casual€employment,€kinship€or€personal€and€social€relations€rather€than€contractual€arrangements€with€formalÏguarantees.ÌÌà ø à(2)€Production€units€of€the€informal€sector€have€the€characteristic€features€of€household€enterprises.€ÏThe€fixed€and€other€assets€used€do€not€belong€to€the€production€units€as€such€but€to€their€owners.€€The€units€asÏsuch€cannot€engage€in€transactions€or€enter€into€contracts€with€other€units,€nor€incur€liabilities,€on€their€ownÏÔ_ÔhehalfÔ_Ô.€€The€owners€have€to€raise€the€necessary€finance€at€their€own€risk€and€are€personally€liable,€without€limit,Ïfor€any€debts€or€obligations€incurred€in€the€production€process.€€Expenditure€for€production€is€oftenÏindistinguishable€from€household€expenditure.€€Similarly,€capital€goods€such€as€buildings€or€vehicles€may€be€usedÏindistinguishably€for€business€and€household€purposes.ÌÌà ø à(3)€Activities€performed€by€production€units€of€the€informal€sector€are€not€necessarily€performed€withÏthe€deliberate€intention€of€evading€the€payment€of€taxes€or€social€security€contributions,€or€infringing€labour€orÏother€Ô_ÔlegislationsÔ_Ô€or€administrative€provisions.€€Accordingly,€the€concept€of€informal€sector€activities€should€beÏdistinguished€from€the€concept€of€activities€of€the€hidden€or€underground€economy.ÌÌÌò òOPERATIONAL€DEFINITIONSó óÐ .¾&1 ÐÌò òInformal€sectoró óÐ ›/R(3 ÐÐ e0)4 ÐÑ_ Ñâ _âÑ8€)1b)XXdð)XXdð8Ñâ _âÑ  Ñà ø àò ò6.ó ó€(1)€For€statistical€purposes,€the€informal€sector€is€regarded€as€a€group€of€production€units€which,Ð I Ðaccording€to€the€definitions€and€classifications€provided€in€the€United€Nations€System€of€National€AccountsÏ(Rev.4),€form€part€of€the€household€sector€as€household€enterprises€or,€equivalently,€unincorporated€enterprisesÏowned€by€households€as€defined€in€paragraph€7.ÌÌà ø à(2)€Within€the€household€sector,€the€informal€sector€comprises€(Ô_ÔiÔ_Ô)€"informal€own„account€enterprises"Ïas€defined€in€paragraph€8;€€and€(ii)€the€additional€component€consisting€of€"enterprises€of€informal€employers"Ïas€defined€in€paragraph€9.ÌÌà ø à(3)€The€informal€sector€is€defined€irrespective€of€the€kind€of€workplace€where€the€productive€activitiesÏare€carried€out,€the€extent€of€fixed€capital€assets€used,€the€duration€of€the€operation€of€the€enterprise€(perennial,Ïseasonal€or€casual),€and€its€operation€as€a€main€or€secondary€activity€of€the€owner.ÌÌÌò òHousehold€enterprisesó óÐ Y  ÐÌà ø àò ò7.ó ó€According€to€the€United€Nations€System€of€National€Accounts€(Rev.4),€household€enterprises€(or,Ð í¤  Ðequivalently,€unincorporated€enterprises€owned€by€households)€are€distinguished€from€corporations€and€quasi„¼corporations€on€the€basis€of€the€legal€organisation€of€the€units€and€the€type€of€accounts€kept€for€them.€€HouseholdÏenterprises€are€units€engaged€in€the€production€of€goods€or€services€which€are€not€constituted€as€separate€legalÏentities€independently€of€the€households€or€household€members€that€own€them,€and€for€which€no€complete€setsÏof€accounts€(including€balance€sheets€of€assets€and€liabilities)€are€available€which€would€permit€a€clear€distinctionÏof€the€production€activities€of€the€enterprises€from€the€other€activities€of€their€owners€and€the€identification€of€anyÏflows€of€income€and€capital€between€the€enterprises€and€the€owners.€€Household€enterprises€includeÏunincorporated€enterprises€owned€and€operated€by€individual€household€members€or€by€two€or€more€membersÏof€the€same€household€as€well€as€unincorporated€partnerships€formed€by€members€of€different€households.ÌÌÌò òInformal€own„account€enterprisesó óÐ i  ÐÌà ø àò ò8.ó ó€(1)€Informal€own„account€enterprises€are€household€enterprises€(in€the€sense€of€paragraph€7)€ownedÐ ý´ Ðand€operated€by€own„account€workers,€either€alone€or€in€partnership€with€members€of€the€same€or€otherÏhouseholds,€which€may€employ€contributing€family€workers€and€employees€on€an€occasional€basis,€but€do€notÏemploy€employees€on€a€continuous€basis€and€which€have€the€characteristics€described€in€subparagraphs€5€(1)€andÏ(2).€€ÌÌà ø à(2)€For€operational€purposes,€informal€own„account€enterprises€may€comprise,€depending€on€nationalÏcircumstances,€either€all€own„account€enterprises€or€only€those€which€are€not€registered€under€specific€forms€ofÏnational€legislation.ÌÌà ø à(3)€Registration€may€refer€to€registration€under€factories€or€commercial€acts,€tax€or€social€securityÏlaws,€professional€groups'€regulatory€acts,€or€similar€acts,€laws,€or€regulations€established€by€national€legislativeÏbodies.ÌÌà ø à(4)€Own„account€workers,€contributing€family€workers,€employees€and€the€employment€of€employeesÏon€a€continuous€basis€are€defined€in€accordance€with€the€most€recently€adopted€version€of€the€InternationalÏClassification€of€Status€in€Employment€(Ô_ÔICSEÔ_Ô).ÌÌÌò òEnterprises€of€informal€employersÐ ÿ-¶&1 Ðó óÌà ø àò ò9.ó ó€(1)€Enterprises€of€informal€employers€are€household€enterprises€(in€the€sense€of€paragraph€7)Ð “/J(3 Ðowned€and€operated€by€employers,€either€alone€or€in€partnership€with€members€of€the€same€or€other€households,Ð a0)4 Ðwhich€employ€one€or€more€employees€on€a€continuous€basis€and€which€have€the€characteristics€described€inÏsubparagraphs€5€(1)€and€(2).ÌÌà ø à(2)€For€operational€purposes,€enterprises€of€informal€employers€may€be€defined,€depending€onÏnational€circumstances,€in€terms€of€one€or€more€of€the€following€criteria:ÌÌ(Ô_ÔiÔ_Ô)à ø àsize€of€the€unit€below€a€specified€level€of€employment;Ð  ¼ ÐÌ(ii)à ø ànon„registration€of€the€enterprise€or€its€employees.Ð ™ P ÐÌÌà ø à(3)€While€the€size€criterion€should€preferably€refer€to€the€number€of€employees€employed€on€aÏcontinuous€basis,€in€practice,€it€may€also€be€specified€in€terms€of€the€total€number€of€employees€or€the€numberÏof€persons€engaged€during€the€reference€period.ÌÌà ø à(4)€The€upper€size€limit€in€the€definition€of€enterprises€of€informal€employers€may€vary€betweenÏcountries€and€branches€of€economic€activity.€€It€may€be€determined€on€the€basis€of€minimum€size€requirementsÏas€embodied€in€relevant€national€Ô_ÔlegislationsÔ_Ô,€where€they€exist,€or€in€terms€of€empirically€determined€norms.€€TheÏchoice€of€the€upper€size€limit€should€take€account€of€the€coverage€of€statistical€inquiries€of€larger€units€in€theÏcorresponding€branches€of€economic€activity,€where€they€exist,€in€order€to€avoid€an€overlap.ÌÌà ø à(5)€In€the€case€of€enterprises€which€carry€out€their€activities€in€more€than€one€establishment,€the€sizeÏcriterion€should,€in€principle,€refer€to€each€of€the€establishments€separately€rather€than€to€the€enterprise€as€aÏwhole.€€Accordingly,€an€enterprise€should€be€considered€to€satisfy€the€size€criterion€if€none€of€its€establishmentsÏexceeds€the€specified€upper€size€limit.ÌÌà ø à(6)€Registration€of€the€enterprise€may€refer€to€registration€under€specific€forms€of€national€legislationÏas€specified€in€subparagraph€8€(3).€€Employees€may€be€considered€registered€if€they€are€employed€on€the€basisÏof€an€employment€or€apprenticeship€contract€which€commits€the€employer€to€pay€relevant€taxes€and€social€securityÏcontributions€on€behalf€of€the€employee€or€which€makes€the€employment€relationship€subject€to€standard€labourÏlegislation.ÌÌà ø à(7)€Employers,€employees€and€the€employment€of€employees€on€a€continuous€basis€are€defined€inÏaccordance€with€the€most€recently€adopted€version€of€the€International€Classification€of€Status€in€EmploymentÏ(Ô_ÔICSEÔ_Ô).ÌÌà ø àò ò10.ó ó€For€particular€analytical€purposes,€more€specific€definitions€of€the€informal€sector€may€beÐ ±#h$ Ðdeveloped€at€the€national€level€by€introducing€further€criteria€on€the€basis€of€the€data€collected.€€Such€definitionsÏmay€vary€according€to€the€needs€of€different€users€of€the€statistics.ÌÌÌò òPopulation€employed€in€the€informal€sectorÐ §'^ ) Ðó óÌà ø àò ò11.ó ó€(1)€The€population€employed€in€the€informal€sector€comprises€all€persons€who,€during€a€givenÐ ;)ò!+ Ðreference€period,€were€employed€(in€the€sense€of€paragraph€9€of€resolution€I€adopted€by€the€ThirteenthÏInternational€Conference€of€Labour€Statisticians)€in€at€least€one€informal€sector€unit€as€defined€in€paragraphs€8Ïand€9,€irrespective€of€their€status€in€employment€and€whether€it€is€their€main€or€a€secondary€job.ÌÌà ø à(2)€Where€possible,€the€population€employed€in€the€informal€sector€should€be€Ô_ÔsubclassifiedÔ_Ô€into€twoÏcategories:€persons€exclusively€employed€in€the€informal€sector,€and€persons€employed€both€in€and€outside€theÏinformal€sector.€€The€latter€category€may€be€further€divided€into€two€subcategories:€persons€whose€main€job€isÏin€the€informal€sector,€and€persons€whose€secondary€job€is€in€the€informal€sector.ÌÐ Y0)4 Ðà ø à(3)€If€the€total€employed€population€is€to€be€classified€into€mutually€exclusive€categories€of€personsÏemployed€in€and€outside€the€informal€sector,€persons€employed€both€in€and€outside€the€informal€sector€should€beÏclassified€as€a€separate€category,€or€€criteria€should€be€established€to€determine€their€main€job€(e.g.€on€the€basisÏof€self„assessment,€time€spent€at€work€or€amount€of€remuneration€received€in€each€job).ÌÌà ø à(4)€In€some€countries,€a€significant€number€of€children€below€the€age€specified€for€measurement€ofÏthe€economically€active€population€in€population€censuses€or€household€surveys€work€in€informal€sector€units€andÏmay€represent€a€group€of€particular€concern€for€labour€legislation€and€educational€and€social€policies.€€In€suchÏsituations,€every€possible€effort€should€be€made€in€informal€sector€surveys€to€collect€information€on€the€work€ofÏall€children€irrespective€of€age,€and€children€below€the€minimum€age€specified€in€population€censuses€orÏhousehold€surveys€should€be€identified€separately.ÌÌÌò òTREATMENT€OF€PARTICULAR€CASESÐ ‹B  Ðó óÌà ø àò ò12.ó ó€(1)€Different€members€of€a€household€may€be€engaged€as€self„employed€persons€in€different€kindsÐ Ö  Ðof€informal€sector€activities€during€a€given€reference€period.€€In€order€to€determine€whether€such€activities€shouldÏbe€regarded€as€separate€enterprises€or€as€parts€of€a€single€enterprise,€due€consideration€should€be€given€to€theÏdefinitional€requirements€of€an€enterprise€as€specified€in€the€International€Standard€Industrial€Classification€of€AllÏEconomic€Activities€(Ô_ÔISICÔ_Ô,€Rev.3).€€Where€it€is€difficult€in€practice€to€apply€these€requirements,€differentÏactivities€carried€out€by€different€household€members€should€be€treated€as€separate€enterprises€if€they€areÏperceived€as€such€by€the€household€members€themselves.ÌÌà ø à(2)€A€household€member€or€group€of€household€members€may€be€engaged€as€self„employed€personsÏin€different€kinds€of€informal€sector€activities€during€a€given€reference€period.€€For€practical€purposes,€allÏactivities€carried€out€at€a€time€by€the€same€household€member€or€group€of€household€members€should€be€treatedÏas€parts€of€a€single€enterprise€rather€than€as€separate€enterprises.ÌÌà ø àò ò13.ó ó€In€the€case€of€informal€sector€units€which€are€engaged€in€different€kinds€of€production€activitiesÐ e Ðduring€a€given€reference€period,€efforts€should€be€made€to€collect€as€much€separate€information€as€possible€inÏrespect€of€each€activity,€even€when€the€enterprises€concerned€need€not€or€cannot€be€partitioned€into€establishmentsÏas€defined€by€the€International€Standard€Industrial€Classification€of€All€Economic€Activities€(Ô_ÔISICÔ_Ô,€Rev.3).€€InÏparticular,€such€separate€information€should€be€collected€in€respect€of€all€activities€of€the€enterprise€which€areÏhorizontally€integrated€(i.e.€producing€different€kinds€of€goods€or€services€for€sale€or€exchange€and€carried€outÏparallel€with€each€other),€irrespective€of€their€share€in€the€total€value€added€of€the€enterprise.ÌÌò òà ø à14.ó ó€Household€enterprises,€which€are€exclusively€engaged€in€non„market€production,€i.e.€theÐ ¹#p$ Ðproduction€of€goods€or€services€for€own€final€consumption€or€own€fixed€capital€formation€as€defined€by€the€UnitedÏNations€System€of€National€Accounts€(Rev.4),€should€be€excluded€from€the€scope€of€the€informal€sector€for€theÏpurpose€of€statistics€of€employment€in€the€informal€sector.€€Depending€on€national€circumstances,€an€exceptionÏmay€be€made€in€respect€of€households€employing€domestic€workers€as€referred€to€in€paragraph€19.ÌÌà ø àò ò15.ó ó€With€account€being€taken€of€paragraph€14,€the€scope€of€the€informal€sector€should€includeÐ y(0!* Ðhousehold€enterprises€located€in€urban€areas€as€well€as€household€enterprises€located€in€rural€areas.€€However,Ïcountries€which€start€to€conduct€surveys€of€the€informal€sector€may€initially€confine€data€collection€to€urban€areas.€ÏDepending€upon€the€availability€of€resources€and€appropriate€sampling€frames,€the€coverage€of€the€surveys€shouldÏgradually€be€extended€to€cover€the€whole€national€territory.ÌÌà ø àò ò16.ó ó€For€practical€reasons,€the€scope€of€the€informal€sector€may€be€limited€to€household€enterprisesÐ 9-ð%0 Ðengaged€in€non„agricultural€activities.€€With€account€being€taken€of€paragraph€14,€all€non„agricultural€activitiesÏshould€be€included€in€the€scope€of€the€informal€sector,€irrespective€of€whether€the€household€enterprises€carryÏthem€out€as€main€or€secondary€activities.€€In€particular,€the€informal€sector€should€include€secondary€non„¼agricultural€activities€of€household€enterprises€in€the€agricultural€sector€if€they€fulfil€the€requirements€ofÐ e0)4 Ðparagraphs€8€or€9.ÌÌà ø àò ò17.ó ó€Units€engaged€in€professional€or€technical€activities€carried€out€by€self„employed€persons€suchÐ Ý” Ðas€doctors,€lawyers,€accountants,€architects€or€engineers,€should€be€included€in€the€informal€sector€if€they€fulfilÏthe€requirements€of€paragraphs€8€or€9.ÌÌà ø àò ò18.ó ó€(1)€Ô_ÔOutworkersÔ_Ô€are€persons€who€agree€to€work€for€a€particular€enterprise,€or€to€supply€a€certainÐ  À Ðquantity€of€goods€or€services€to€a€particular€enterprise,€by€prior€arrangement€or€contract€with€that€enterprise,€butÏwhose€place€of€work€is€not€within€any€of€the€establishments€which€make€up€that€enterprise.ÌÌà ø à(2)€In€order€to€facilitate€data€collection,€all€Ô_ÔoutworkersÔ_Ô€should€be€potentially€included€in€the€scopeÏof€informal€sector€surveys,€irrespective€of€whether€they€constitute€production€units€on€their€own€(self„employedÏÔ_ÔoutworkersÔ_Ô)€or€form€part€of€the€enterprise€which€employs€them€(employee€Ô_ÔoutworkersÔ_Ô).€€On€the€basis€of€theÏinformation€collected,€self„employed€and€employee€Ô_ÔoutworkersÔ_Ô€should€be€distinguished€from€each€other€by€usingÏthe€criteria€recommended€in€the€United€Nations€System€of€National€Accounts€(Rev.4).€€Ô_ÔOutworkersÔ_Ô€should€beÏincluded€in€the€informal€sector,€or€in€the€population€employed€in€the€informal€sector,€if€the€production€units€whichÏthey€constitute€as€self„employed€persons€or€for€which€they€work€as€employees€fulfil€the€requirements€ofÏparagraphs€8€or€9.ÌÌà ø à(3)€In€situations€where€the€number€of€Ô_ÔoutworkersÔ_Ô€is€significant€or€where€Ô_ÔoutworkersÔ_Ô€represent€a€groupÏof€particular€concern€for€data€users,€self„employed€Ô_ÔoutworkersÔ_Ô€should€be€identified€as€separate€sub„categories€ofÏinformal€own„account€enterprises€and€enterprises€of€informal€employers€or€of€the€owners€of€such€enterprises.ÌÌà ø à(4)€For€purposes€of€distinction€between€employment€on€a€continuous€basis€and€employment€on€anÏoccasional€basis,€and€in€application€of€the€definition€of€registered€employees€according€to€paragraph€9(6),Ïemployee€Ô_ÔoutworkersÔ_Ô€should€be€treated€in€the€same€way€as€other€employees.€€Where€relevant,€employeeÏÔ_ÔoutworkersÔ_Ô€may€be€identified€as€a€separate€sub„category€of€informal€sector€employees.ÌÌò òà ø à19.ó ó€Domestic€workers€are€persons€exclusively€engaged€by€households€to€render€domestic€servicesÐ i  Ðfor€payment€in€cash€or€in€kind.€€Domestic€workers€should€be€included€in€or€excluded€from€the€informal€sectorÏdepending€upon€national€circumstances€and€the€intended€uses€of€the€statistics.€€In€either€case,€domestic€workersÏshould€be€identified€as€a€separate€sub„category€in€order€to€enhance€international€comparability€of€the€statistics.ÌÌà ø àò ò20.ó ó€Activities€excluded€from€the€scope€of€the€informal€sector,€such€as€domestic€services,€non„marketÐ _!! Ðproduction€and€agricultural€activities,€may€be€identified€as€separate€categories€outside€the€distinction€between€theÏinformal€and€formal€sectors.ÌÌÌò òDATA€COLLECTION€PROGRAMME€AND€METHODSÐ U% & Ðó óÌà ø àò ò21.ó ó€(1)€The€collection€of€data€on€the€informal€sector€should€be€integrated€into€the€regular€nationalÐ é& ( Ðstatistical€system.€The€data€collection€programme€should€provide€both€for€(a)€the€current€monitoring,€if€possibleÏonce€a€year,€of€the€evolution€of€employment€in€the€informal€sector€and€(b)€the€in„depth€examination,€if€possibleÏevery€five€years,€of€informal€sector€units€with€respect€to€their€numbers€and€characteristics,€in€particular,€theirÏorganisation€and€Ô_ÔfunctionningÔ_Ô,€their€production€activities€and€levels€of€income€generation,€as€well€as€theirÏconstraints€and€potentials.ÌÌà ø à(2)€The€data€collection€programme€with€regard€to€the€broad€objective€(a)€should€preferably€be€basedÏon€a€household€survey€approach,€with€households€as€reporting€units€and€individual€household€members€asÏobservation€units.€With€regard€to€the€broad€objective€(b),€the€data€collection€programme€should€preferably€beÏbased€on€an€establishment€survey€approach€or€a€mixed€household€and€enterprise€survey€approach,€or€aÏcombination€of€both,€with€the€informal€sector€units€themselves€and€their€owners€as€observation€and€reportingÏunits.Ð e0)4 Їà ø à(3)€Other€measurement€methods€can€also€be€considered,€such€as€methods€of€indirect€macroeconomicÏestimation€or€the€comparative€analysis€of€data€from€different€sources.€€ÌÌò òHousehold€surveys€for€monitoring€informal€sector€employmentó óÐ § ^ ÐÌà ø àò ò22.ó ó€(1)€Existing€surveys€of€the€economically€active€population€and€similar€household€surveys€provideÐ ; ò Ða€useful€and€economical€means€of€collecting€data€on€employment€in€the€informal€sector€in€terms€of€the€numberÏand€characteristics€of€the€persons€concerned€and€the€conditions€of€their€employment€and€work.ÌÌà ø à(2)€For€this€purpose,€questions€pertaining€to€the€definition€of€the€informal€sector€should€beÏincorporated€into€the€survey€questionnaire€and€asked€in€respect€of€all€persons€employed€during€the€referenceÏperiod€of€the€survey,€irrespective€of€their€status€in€employment.ÌÌà ø à(3)€Special€care€should€be€taken€in€the€survey€design€and€operations€to€ensure€comprehensiveÏcoverage€of€the€population€employed€in€the€informal€sector€as€defined€in€paragraph€11(1)€above.€In€particular,Ïspecial€efforts€should€be€made€in€the€sample€design€to€ensure€appropriate€representativeness€of€areas€whereÏpersons€engaged€in€informal€sector€activities€tend€to€live.€It€is€also€important€to€collect€data€on€secondary€activitiesÏof€household€members€in€the€same€detail€as€on€the€main€activity,€including€the€criteria€used€for€defining€theÏinformal€sector.€Special€Ô_ÔprobingsÔ_Ô€may€be€needed€with€respect€to€informal€sector€activities€that€would€otherwiseÏgo€unreported,€such€as€unpaid€work€in€family€enterprises€or€activities€carried€out€by€women€on€their€own€accountÏat€or€from€home.€To€obtain€comprehensive€data€on€children€working€in€the€informal€sector,€it€may€also€beÏnecessary€to€lower€the€minimum€age€normally€used€in€the€survey€for€measuring€characteristics€of€theÏeconomically€active€population.ÌÌà ø à(4)€The€data€collected€should€be€analysed€in€conjunction€with€other€relevant€information€obtainedÏfrom€the€same€survey.€In€particular,€a€mutually€exclusive€breakdown€may€be€made€of€the€economically€activeÏpopulation€by€employment€in€and€outside€the€informal€sector€and€unemployment.€Depending€on€nationalÏcircumstances€and€data€needs,€information€on€various€forms€of€atypical€or€precarious€employment€outside€theÏinformal€sector€may€be€obtained€along€with€data€on€the€different€forms€of€employment€in€the€informal€sector.€ForÏthis€purpose,€all€employed€persons,€whether€working€in€the€informal€sector€or€outside,€should€be€classified€byÏstatus€in€employment€at€an€appropriate€level€of€Ô_ÔdisaggregationÔ_Ô.ÌÌà ø à(5)€In€order€to€monitor€trends€in€informal€sector€employment€over€time,€questions€on€employmentÏin€the€informal€sector€should€be€included,€if€possible,€once€a€year€in€existing€infra„annual€surveys€of€theÏeconomically€active€population€or€similar€household€surveys.€Surveys€conducted€at€less€frequent€intervals€(e.g.,Ïannually€or€Ô_ÔquinquenniallyÔ_Ô)€should€include€questions€on€employment€in€the€informal€sector€in€every€survey€round,Ïif€possible.ò òÐ µ#l$ ÐÌÌEstablishment€surveys€of€informal€sector€unitsó óÐ &Ê' ÐÌà ø àò ò23.ó ó€It€may€be€possible€to€collect€data€on€informal€sector€units€through€various€kinds€of€establishmentÐ §'^ ) Ðsurveys€depending€on€the€measurement€objectives,€the€intended€uses€of€the€data,€the€calendar€and€structure€of€theÏnational€statistical€system,€and€the€availability€of€sampling€frames€and€resources.ÌÌà ø àò ò24.ó ó€(1)€In€conjunction€with€an€establishment€or€economic€census€or€using€the€latest€economic€censusÐ Ó*Š#- Ðas€an€area€sampling€frame,€special€surveys€of€informal€establishments€may€be€conducted€to€collect€specific€dataÏon€employment,€production,€income€generation€and€other€characteristics€of€informal€sector€units€and€their€owners.ÌÌà ø à(2)€For€this€purpose,€the€economic€census€should,€in€principle,€contain€the€required€items€forÏidentifying€the€informal€sector€units€according€to€the€definition€set€forth€in€paragraph€6.€€However,€as€theÏobservation€unit€in€economic€censuses€is€typically€the€establishment,€the€reconstitution€of€informal€sectorÏenterprises€on€the€basis€of€the€available€information€may€not€be€easy€to€achieve€in€practice.Ð ]0)4 Їà ø à(3)€Unless€particular€measures€are€taken,€the€coverage€of€such€surveys€of€informal€sectorÏestablishments€is€limited€by€the€scope€of€the€economic€census€on€which€they€are€based.€In€particular,€coverageÏtypically€excludes€informal€sector€units€which€do€not€operate€in€fixed€premises€designated€for€the€purpose€ofÏcarrying€out€production€activities€or€which€are€not€identifiable€as€such€from€the€outside€during€the€listingÏoperation.ÌÌà ø à(4)€While€it€is€generally€preferable€to€cover€all€types€of€informal€sector€activities€through€a€singleÏsurvey,€branch„specific€surveys€or€a€series€of€such€surveys€may€be€considered€if€the€measurement€objectives€areÏlimited€to€particular€kinds€of€informal€sector€activities,€or€if€the€scale€of€a€single€survey€is€considered€too€largeÏto€be€manageable€in€practice.ÌÌà ø à(5)€In€a€branch„specific€survey,€the€listing€operation€should€be€such€as€to€identify€all€and€only€thoseÏinformal€sector€units€that€fall€within€the€scope€of€the€survey.€Rules€need€to€be€established€for€informal€sector€unitsÏalso€engaged€in€other€activities,€particularly€if€some€of€these€activities€fall€outside€the€scope€of€the€survey.ÌÌà ø à(6)€When€the€intention€is€to€cover€all€types€of€informal€sector€activities€through€a€series€of€branch„¼specific€surveys€rather€than€a€single€survey,€the€data€collection€programme€should€be€designed€to€ensure€aÏcomprehensive€coverage€of€informal€sector€units€without€omission€or€duplication€between€surveys.€The€timingÏof€the€surveys€and€the€methodology€to€obtain€overall€aggregates€should€be€carefully€planned.ÌÌÌò òMixed€household€and€enterprise€surveysó óÐ Û’ ÐÌà ø àò ò25.ó ó€(1)€The€basic€principle€of€mixed€household€and€enterprise€surveys€is€to€construct€a€samplingÐ o& Ðframe€of€informal€sector€enterprises€through€a€household€survey€operation,€prior€to€the€informal€sector€surveyÏitself.€The€household€survey€component,€if€appropriately€designed,€makes€it€possible€to€identify€informal€sectorÏenterprises€rather€than€establishments,€and€to€cover€virtually€all€informal€sector€units€irrespective€of€size,€kindÏof€activity,€and€type€of€workplace.ÌÌà ø à(2)€Mixed€household€and€enterprise€surveys€are€based€on€area€sampling€and€conducted€in€two€phases:€Ï(Ô_ÔiÔ_Ô)€informal€sector€enterprises€and€their€working€owners€are€identified€during€the€first€phase€through€a€householdÏlisting€or€interviewing€operation€(household€survey€component);€€(ii)€all€or€a€sample€of€the€business€owners€thusÏidentified€are€interviewed€during€the€second€phase€to€obtain€information€on€the€characteristics€of€their€enterprisesÏ(enterprise€survey€component).ÌÌà ø àò ò26.ó ó€(1)€The€time€interval€between€the€two€phases€should€be€kept€as€short€as€possible,€to€minimise€lossÐ ë"¢# Ðrates€of€units.ÌÌà ø à(2)€Informal€sector€enterprises€should€be€identified€on€the€basis€of€own„account€workers€andÏemployers€who€are€members€of€the€sample€households.€Identification€based€on€employees€of€informal€sector€unitsÏshould€be€avoided.ÌÌà ø à(3)€In€order€to€avoid€omissions,€the€household€survey€component€must€be€targeted€to€all€employersÏand€own„account€workers€in€the€sample€who€are€potentially€included€in€the€informal€sector.€€The€informal€sectorÏunits€are€then€subsequently€identified€on€the€basis€of€the€information€obtained€from€the€enterprise€surveyÏcomponent.ÌÌà ø à(4)€While€information€during€the€first€phase€of€the€survey€may€often€have€to€be€obtained€from€proxyÏrespondents,€it€is€highly€desirable€in€the€second€phase€that€the€business€owners€themselves€are€interviewed.€WhereÏrelevant,€these€interviews€should€preferably€be€conducted€at€the€place€of€work€rather€than€the€place€of€residenceÏof€the€household€member.ÌÌà ø àò ò27.ó ó€(1)€Since€informal€sector€enterprises€may€be€owned€and€operated€by€members€of€differentÐ Y0)4 Ðhouseholds€in€business€partnership,€and€such€partnerships€may€differ€significantly€from€other€units€in€theirÏcharacteristics,€an€appropriate€procedure€should€be€adopted,€at€the€selection€stage€of€the€informal€sector€units,Ïor,€preferably,€at€the€stage€of€assigning€the€sampling€weights,€to€ensure€that€the€resulting€statistics€areÏrepresentative€of€the€total€survey€universe.€€The€sampling€weights€should€be€determined€with€great€care.ÌÌà ø à(2)€For€a€comprehensive€coverage,€all€informal€sector€enterprises€and€their€operators€in€the€sampleÏareas€or€in€the€sample€households€should€be€identified€in€the€first€phase€of€the€survey.€In€particular,€businessesÏoperated€as€secondary€activities€of€household€members€should€be€identified€on€the€same€basis€as€businessesÏoperated€as€main€activities.€Special€probing€may€also€be€necessary€to€identify€women€and€children€engaged€inÏinformal€sector€activities€on€their€own€account.ÌÌà ø àò ò28.ó ó€If€information€on€seasonal€variations€of€informal€sector€activities€is€to€be€obtained€and€annualÐ ÷®  Ðestimates€of€the€main€aggregates€are€to€be€produced,€data€collection€should€be€spread€over€a€period€of€a€wholeÏyear€by€dividing€the€sample€into€independent€Ô_ÔsubsamplesÔ_Ô€for€different€quarters€or€months€of€the€year.ÌÌà ø àò ò29.ó ó€The€nature€and€efficiency€of€the€survey€design€of€a€mixed€household€and€enterprise€survey€willÐ #Ú  Ðdepend€on€whether€the€survey€is€conceived€as€(Ô_ÔiÔ_Ô)€an€independent€survey,€(ii)€an€attachment€to€an€existingÏhousehold€survey,€or€(iii)€part€of€an€integrated€survey€designed€to€meet€several€objectives.ÌÌà ø àò ò30.ó ó€(1)€In€an€independent€survey,€the€sampling€scheme€may€be€designed€to€satisfy€the€specificÐ O Ðrequirements€of€informal€sector€measurement€and€to€ensure€an€adequate€representation€of€different€types€ofÏinformal€sector€activities€or€units€in€the€sample.ÌÌà ø à(2)€A€sufficiently€stratified€sample€at€the€first€stage€of€selection€helps€avoid€the€need€for€differentialÏlast€stage€sampling€rates€for€different€categories€of€informal€sector€units€and€facilitates€survey€implementation€inÏthe€field.€€Using€the€latest€population€census€or€other€available€information,€an€area€sampling€frame€for€theÏhousehold€survey€component€should€be€constructed€so€as€to€consist€of€area€units€of€the€desired€size,€stratified€asÏfar€as€possible€according€to€the€concentration€of€households€that€operate€informal€sector€units.€Provided€data€areÏavailable€from€the€population€census€and€retrievable€at€a€sufficient€level€of€geographical€detail,€the€stratificationÏof€area€units€may€be€based€on€the€concentration€of€own„account€workers€and€employers€by€broad€industry€group,Ïand,€if€possible,€by€type€of€location€of€the€workplace€and,€for€employers,€by€number€of€their€employees.€€WhereÏsuch€data€are€not€available,€provision€should€be€made€to€obtain€them€from€the€next€population€census.€€ÌÌà ø à(3)€The€household€survey€component€of€an€independent€mixed€survey€may€be€restricted€to€a€householdÏlisting€operation€in€the€selected€area€units,€in€which€information€is€obtained€on€the€composition€of€the€householdÏand,€in€respect€of€each€household€member€of€working€age,€whether€the€person€operated,€as€main€or€secondaryÏactivity,€any€informal€sector€business€during€a€specified€reference€period.€Basic€information€on€the€type€ofÏworkplace,€its€location,€branch€of€economic€activity,€and,€if€possible,€number€of€employees€should€also€beÏobtained.ÌÌà ø àò ò31.ó ó€(1)€If€the€enterprise€survey€component€of€a€mixed€survey€is€conceived€as€an€attachment€to€anÐ å&œ( Ðexisting€household€survey€(e.g.€a€labour€force€survey€or€a€household€income€and€expenditure€survey)€effortsÏshould€be€made€to€make€up€for€the€limitations€resulting€from€the€design€and€selection€of€the€base€survey€sample.ÌÌà ø à(2)€The€effective€sample€size€of€the€enterprise€survey€component€may€be€increased€by€selecting€theÏsample€of€informal€sector€units€on€the€basis€of€all€households€identified€during€the€listing€operation€of€the€baseÏsurvey€rather€than€only€those€selected€for€the€base€survey€sample.€Alternative€procedures€would€be€to€add,€ifÏresources€are€available,€appropriately€chosen€supplementary€areas€to€the€base€survey€sample,€or,€if€the€baseÏsurvey€is€of€a€continuing€nature,€to€cumulate€the€Ô_ÔsubsamplesÔ_Ô€of€informal€sector€units€over€several€rounds.ÌÌà ø àò ò32.ó ó€In€developing€integrated€surveys€for€the€collection€of€data€on€the€informal€sector€and€other€topicsÐ Í.„'2 Ð(e.g.€labour€force,€household€economic€activities),€the€requirements€of€informal€sector€measurement€can€beÏincorporated,€to€a€greater€or€lesser€extent,€into€the€overall€design€of€the€survey,€through€appropriate€methods€ofÐ e0)4 Ðsample€allocation€and€selection.€The€major€requirement€of€the€informal€sector€component€is€adequateÏrepresentation€of€the€different€types€of€informal€sector€activities€and€units€in€the€sample.ÌÌÌò òITEMS€OF€DATA€COLLECTIONó óÐ q ( ÐÌà ø àò ò33.ó ó€(1)€The€type€of€data€to€be€collected€on€the€informal€sector€depends€largely€upon€the€specificÐ  ¼ Ðcircumstances€in€each€country,€methods€of€data€collection,€the€intended€uses€of€the€statistics€and€the€practicalÏfeasibility€of€data€collection.€€For€determination€of€the€items€of€data€collection,€the€main€users€of€the€statisticsÏshould€be€consulted€and€the€results€of€previous€surveys€analysed€or€pilot€surveys€conducted.ÌÌà ø à(2)€In€order€to€enhance€the€usefulness€of€informal€sector€statistics€for€joint€analysis€with€other€relatedÏeconomic€and€social€statistics€and€for€the€purposes€of€international€comparison,€the€definitions€and€classificationsÏof€the€items€of€data€collected€should,€as€far€as€possible,€be€compatible€with€those€used€in€other€national€surveysÏor€censuses€and€correspond€to€the€most€recently€adopted€versions€of€relevant€international€recommendations€andÏstandard€classifications.ÌÌà ø àò ò34.ó ó€The€statistics€obtained€should€include,€as€a€minimum,€the€number€of€persons€engaged€in€informalÐ ·n  Ðsector€units€by€status€in€employment€and€by€kind€of€economic€activity€and,€if€possible,€the€number€of€informalÏsector€enterprises€by€kind€of€economic€activity€and€by€type€(i.e.€informal€own„account€enterprises,€enterprisesÏof€informal€employers).ÌÌà ø àò ò35.ó ó€(1)€In€addition,€data€may€be€collected€in€more€or€less€detail€and€with€appropriate€frequencies€onÐ ­d Ðany€one€or€more€of€the€following€topics:ÌÌ(Ô_ÔiÔ_Ô)à0 ø àòòEmployment€and€working€conditionsóó:€€number€of€persons€engaged€in€informal€sector€units€during€theÐ Æ Ðreference€period€by€sex,€age,€migration€characteristics,€school€attendance,€educational€attainment,Ïkind€of€vocational€training€received,€occupation,€time€spent€at€work€and,€where€possible,€other€jobsÏheld€in€or€outside€the€informal€sector€taking€account€of€the€categories€and€subcategories€mentionedÏin€paragraph€11(2);€number€of€employees€by€nature€of€employment€(continuous,€casual;€registered,Ïnot€registered);€€compensation€of€employees€and€its€components€(wages€and€salaries€in€cash€or€inÏkind,€employers'€social€contributions),€frequency€and€mode€of€remuneration,€entitlement€to€paidÏannual€or€sick€leave,€etc.Ð ø "ø " ÐÌ(ii)à0 ø àòòProduction,€income€generation€and€fixed€capitalóó:€€frequency€of€operation€(perennial,€seasonal,Ð )"à" Ðcasual);€duration€of€operation€during€the€reference€period;€quantity€and€value€of€outputs€producedÏduring€the€reference€period;€total€amount€of€sales;€intermediate€consumption;€taxes€paid€onÏproduction€and€subsidies€received,€if€any;€€property€income€received€and€property€charges€payableÏin€connection€with€business€activities;€characteristics€of€loans€taken€for€business€activities;€€fixedÏassets€owned€by€the€units;€fixed€capital€formation€during€the€reference€period;€€etc.Ð ø "ø " ÐÌ(iii)à0 ø àòòConditions€of€business€operationóó:€€legal€organisation€of€the€units;€type€of€accounts€kept;€type€ofÐ ¯'f ) Ðownership€(individual€ownership,€household€ownership,€business€partnership€with€members€of€otherÏhouseholds);€€number€of€business€partners€from€other€households,€if€any;€location€(urban€versus€ruralÏareas);€€type€of€workplace:€€workshop,€shop,€etc.,€fixed€market€or€street€stall,€home€of€the€enterpriseÏowner,€no€fixed€place€(e.g.€homes€of€clients,€construction€sites,€mobile);€€type€and€number€ofÏcustomers,€or€proportion€of€output€sold€to€different€types€of€customers;€€extent€and€terms€of€workÏperformed€for€other€enterprises€under€subcontracting€arrangements;€sources€of€capital€for€theÏacquisition€of€fixed€assets;€€origin€of€the€main€goods€used€for€further€processing€or€resaleÏ(importation,€informal€sector,€other);€type€of€registration€or€licensing€of€units;€€availability€of€publicÏutilities€at€the€place€of€work;€€participation€in€informal€sector€support€programmes€and€kind€ofÏassistance€received,€if€any;€membership€in€associations€or€cooperatives€of€informal€sector€producers;€Ïproblems€faced€in€the€creation€of€enterprises€and€constraints€on€their€operation€or€expansion;€yearÐ ]0)4 Ðof€creation€and€evolution€of€enterprises;€€etc.Ð ø "ø " ÐÌ(iv)à0 ø àòòEnterprise€ownersóó:€€sex;€€age;€€marital€status;€€place€or€country€of€origin;€€period€of€residence€in€theÐ Ý” Ðpresent€area;€€previous€place€of€residence,€if€any;€€educational€attainment;€€acquisition€of€skillsÏneeded€to€conduct€the€business€(formal€versus€informal€kinds€of€training);€€present€occupation;€€timeÏspent€at€work€in€the€business€during€the€reference€period;€€engagement€in€other€economic€activities;€Ïcharacteristics€of€other€economic€activities,€if€any,€and€main€source€of€income€of€enterprise€owners;€Ïreasons€for€working€in€the€informal€sector;€€characteristics€of€previous€employment€in€or€outside€theÏinformal€sector,€if€any;€€plans€for€the€future€regarding€business€development€or€alternativeÏemployment;€€etc.Ð ø "ø " ÐÌ(v)à0 ø àòòHouseholds€of€the€enterprise€ownersóó:€€other€household€members€by€sex,€age,€marital€status,Ð ÷®  Ðrelationship€to€the€reference€person€and€activity€status;€employment€characteristics€of€other€householdÏmembers€employed€in€or€outside€the€informal€sector;€amount€and€sources€of€income€of€theÏhouseholds;€€etc.Ð ø "ø " ÐÌÌà ø à(2)€For€the€purposes€of€national€accounting,€the€collection€of€data€on€the€production€and€incomesÏgenerated€by€informal€sector€units€should€aim€at€providing€the€elements€needed€for€the€estimation€of€gross€output,Ïvalue€added€and€mixed€income€(operating€surplus)€as€defined€in€the€United€Nations€System€of€National€AccountsÏ(Rev.4).ÌÌà ø à(3)€Since€production€activities€of€informal€sector€units€often€overlap€with€consumption€activities€ofÏthe€households€of€the€enterprise€owners,€efforts€should€be€made€in€the€collection€of€data€on€intermediateÏconsumption,€property€charges€and€fixed€assets€to€separate€usage€for€business€purposes€from€usage€for€householdÏconsumption.€€If€a€clear€distinction€is€not€possible,€the€expenditures€concerned€should€at€least€be€allocatedÏapproximately€in€proportion€to€the€use€for€business€purposes.ÌÌà ø à(4)€In€the€case€of€informal€sector€units€engaged€in€several€different€kinds€of€production€activities,Ïinputs€into€production€in€the€form€of€labour,€capital,€goods€or€services,€which€cannot€be€clearly€allocated€to€aÏspecific€kind€of€activity,€should€be€distributed€in€an€appropriate€way€over€all€activities€for€which€they€are€used.Ì€Ìà ø à(5)€The€collection€of€data€on€characteristics€of€the€households€of€the€enterprise€owners€enablesÏinformal€sector€activities€to€be€analysed€in€the€context€of€households€as€a€whole.€€Such€analyses€may€includeÏstudies€of€the€role€of€other€household€members€in€providing€additional€income€to€households€and€the€impact€ofÏthe€household€situation€on€the€activities€of€women€in€the€informal€sector.ÌÌÌò òSUB„CLASSIFICATIONSó óÐ E%ü& ÐÌà ø àò ò36.ó ó€(1)€In€order€to€provide€information€on€the€composition€of€the€informal€sector€and€to€identify€moreÐ Ù&( Ðhomogeneous€groups€for€analytical€purposes,€as€targets€for€social€and€economic€policies€and€informal€sectorÏsupport€programmes,€and€as€basis€for€comparisons€of€statistics€over€time€and€between€countries,€informal€sectorÏunits€should€be€sub„classified€by€various€characteristics€on€the€basis€of€the€information€collected.ÌÌà ø à(2)€Enterprises€of€informal€employers,€when€included€in€statistics€of€the€informal€sector,€should€beÏidentified€separately€from€informal€own„account€enterprises.ÌÌà ø à(3)€Useful€sub„classifications€of€informal€own„account€enterprises€and€enterprises€of€informalÏemployers,€both€for€the€analysis€of€informal€sector€statistics€at€the€national€level€and€international€comparison,Ïinclude€distinctions€according€to€the€following€characteristics:ÌÌ(Ô_ÔiÔ_Ô)à ø àkind€of€economic€activity;Ð U0 )4 Ї(ii)à0 ø àtype€of€workplace:€€home€of€enterprise€owner,€other€fixed€premises,€no€fixed€place;ÐIø "ø " ÐÌ(iii)à0 ø àlocation:€€urban€areas,€rural€areas;ÐÝ”ø "ø " ÐÌ(iv)à0 ø ànumber€of€persons€engaged;Ðq (ø "ø " ÐÌ(v)à0 ø àtype€of€ownership:€€individual€ownership,€household€à @ àownership,€business€partnership€with€membersÐ  ¼ Ðof€other€households;Ð ø "ø " ÐÌ(vi)à0 ø àrelation€with€other€enterprises:€€independent€producers,€producers€working€under€subcontractingÐ c  Ðarrangements€for€other€enterprises.Ð ø "ø " ÐÌà ø àÌà ø à(4)€In€addition,€it€may€be€useful€to€sub„classify€informal€own„account€enterprises€according€to€theÏcomposition€of€their€workforce,€distinguishing€one€person„units€from€two„and„more€person€units€and,€among€theÏlatter,€users€of€occasional€hired€labour€from€non„users€of€such€labour.ÌÌà ø à(5)€Depending€on€the€needs€of€data€users€and€the€size€of€samples,€two€or€more€of€these€characteristicsÏmay€be€combined€into€more€complex€classification€schemes.ÌÌà ø à(6)€For€the€purpose€of€international€comparisons,€the€classification€by€kind€of€economic€activityÏshould€adhere€to€or€be€convertible€into€the€International€Standard€Industrial€Classification€of€All€EconomicÏActivities€(Ô_ÔISICÔ_Ô,€Rev.3).€€For€international€reporting€of€the€statistics,€data€should€be€provided€at€the€level€of€Ô_ÔISICÔ_ÔÏtabulation€categories,€except€for€category€"Wholesale€and€retail€trade;€repair€of€motor€vehicles,€motorcycles€andÏpersonal€and€household€goods"€which€should€be€subdivided€appropriately.€€For€other€purposes,€data€classifiedÏaccording€to€kind€of€economic€activity€may€be€required€in€as€much€detail€as€is€supported€by€the€size€of€theÏsamples.€€To€reflect€the€diversity€of€informal€sector€activities,€it€may€be€necessary€to€develop€appropriate€furtherÏsub„divisions€of€some€of€the€groups€which€the€activity€classification€commonly€used€provides€at€its€most€detailedÏlevel.€€To€ensure€the€comparability€of€informal€sector€statistics€with€other€statistics,€any€such€sub„divisions€shouldÏbe€so€defined€that€the€data€can€be€aggregated€to€higher€level€categories€of€the€classification€without€cutting€acrossÏtheir€boundaries.€€Units€engaged€in€more€than€one€activity€during€the€reference€period€should€be€classifiedÏaccording€to€their€main€activity€which€may€be€defined€as€that€with€the€largest€value€added.ÌÌ€€à ø à(7)€The€size€intervals€used€for€the€sub„classification€by€number€of€persons€engaged€should€beÐ S! ! Ðconsistent€with€the€standard€size€intervals€recommended€for€the€1983€World€Programme€of€Industrial€Statistics,Ïi.e.€1„4,€5„9,€10„19,€etc.€persons€engaged.€€Depending€upon€the€intended€uses€of€the€statistics,€these€intervals€mayÏbe€further€subdivided.ÌÌÌò òFURTHER€ACTIONó óÐ &Æ' ÐÌà ø àò ò37.ó ó€(1)€In€view€of€the€particular€characteristics€of€informal€sector€units€and€their€owners,€specialÐ £'Z ) Ðefforts€should€be€made€in€the€design€and€operations€of€informal€sector€surveys€to€increase€response€rates€andÏobtain€the€required€information€as€accurately€as€possible.ÌÌà ø à(2)€Countries€collecting€data€on€the€informal€sector€should€share€their€experiences€with€theÏInternational€Labour€Office.ÌÌà ø àò ò38.ó ó€(1)€The€International€Labour€Office€should€follow€the€developments€in€designing€andÐ --ä%0 Ðimplementing€informal€sector€surveys,€as€well€as€surveys€of€household€economic€activities,€disseminate€andÏevaluate€information€about€the€lessons€being€learned€from€this€experience€for€discussion€at€the€next€InternationalÏConference€of€Labour€Statisticians,€prepare€a€manual€to€provide€technical€guidelines€on€the€contents€of€thisÏresolution€which€reflects€such€improvements€in€concepts€and€techniques€and,€if€necessary,€arrange€for€a€reviewÐ Y0)4 Ðof€this€resolution€by€a€future€International€Conference€of€Labour€Statisticians.ÌÌà ø à(2)€The€International€Labour€Office€should€co„operate,€as€far€as€possible,€with€countries€in€theÏdevelopment€of€statistics€of€employment€in€the€informal€sector€in€providing€technical€assistance€and€training.ÌÌÔ% €f Ôâ â