Promoting formalization outcomes in Employment-Intensive Investment Programme

This guidance brief is designed to support practitioners and decision-makers in promoting formalization outcomes for informal workers and economic units in EIIP projects. While improving working and living conditions is recognized as part of the transition to formality, this brief adopts a pragmatic approach by focusing on measurable formalization outcomes, namely workers and economic units becoming part of the formal economy. Drawing on evidence from multiple studies, it presents effective pathways for formalization and examines the impacts of EIIP interventions on employment and development. It also highlights the challenges and key considerations involved in integrating formalization into EIIP projects. Finally, it offers practical recommendations for embedding formalization in project design and implementation.