Transitioning to the formal economy through technology, or E-formality

New technologies are continuously transforming the world of work. Technology is transforming not only the way we work but also how we work and even why we work, for workers and economic units. The role of new technologies and its relationship with informality has been addressed from different perspectives. For policymakers, it is important to know how new technologies can transform institutional public policies to address informality.

An increasing number of governments are promoting the application of new technologies to simplify and facilitate the transition from the informal to the formal economy. These policy innovations (”e formality”) will transform the way formalization policies will be implemented in the future.

News

  1. Economía informal

    OIT destaca el potencial de las tecnologías para impulsar la e-formalización en América Latina

    La informalidad laboral es un problema estructural en los mercados de trabajo de la región. OIT analiza el uso de las tecnologías como una vía para hacer más efectivas las estrategias de formalización, aunque para lograrlo será fundamental cerrar múltiples brechas.

  2. Podcast

    Employment and labour market policies: Can they profit from new technologies?

    Accelerating digitalization and technological change are having a big impact on informal employment and public and private employment services. In this podcast, ILO Employment Policy Department experts Vicky Leung, Technical and Programme Officer in the Transition to Formality Unit and, Michael Mwasikakata, Head of the Labour Market Services for Transitions Unit explain how.

  3. Podcast

    Breaking out of the informal economy: Does new technology hold the key?

    In this podcast, ILO Employment Policy Specialist Juan Chacaltana and Technical Officer, Vicky Leung discuss emerging policy trends in how technology can facilitate the transition to the formal economy, or e-formality, and some of the challenges.

  4. News

    Combatting informal employment goes digital: What can we learn from the Estonian experience?

    High rates of informal employment remain a challenge in most of Eastern Europe and range between 20% for Ukraine and 56% for Albania. A new ILO publication analyses how Estonia used modern information technology to promote the transition to formality.

  5. Article

    Is Asia ready for e-formalization?

    Technology can play an important role bringing workers in the Asia-Pacific region into the formal sector. Sara Elder, Senior Economist at ILO’s Regional Office for Asia and the Pacific explains why.

  6. Online event: 18 - 20 May 2021

    South-South Knowledge Sharing Forum on "What works in the e-formalization for Asia and the Pacific"

  7. News

    ILO issues call for ideas and solutions to support e-formality through skills development in Latin America and the Caribbean

  8. Article

    Transitioning to the formal economy through technology: The trends towards e-formality

Resources

  1. Presentation

    Electronic registration of domestic work in Uruguay

  2. Presentation 

    E-Estonia: The digital society

  3. Presentation

    Supporting the transition to formality: The case of informal female tanners in Senegal

  4. Working paper

    New technologies and the transition to formality: The trend towards e–formality

  5. Working paper

    Emerging trends in the use of technology as a driver of the transition to formality: Experiences from Asia and the Pacific

Publications

  1. Report

    E-formalization in Latin America: Accelerating in a region full of gaps

  2. Digital solutions and formalization: E-formalization case study on Republic of Korea

  3. E-formalization regional report

    Renewing the social contract through e-formalization in the world of work

  4. E-formalization regional report

    E-formalization in Europe

  5. E-formalization case study

    e-Estonia: A digital society for the transition to formality