Accounting for informal sector in nati
onal accounts through indirect metho
ds: using labor input methods
Issaka NIANGAO
Ingénieur Statisticien Economiste
Email: [email protected]
11-14 January, 2016 Addis Ababa, Ethiopia
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Outline of the presentation
I. Introduction
II. Goal
III. Methodology
IV. Data Sources
V. Results
VI. Methods of integration in the national
accounts
VII.Conclusions
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I. Introduction
We note that the informal sector covers all
units or individuals that have at least
one of the following characteristics:
1. Units do not keep written accounts
2. Units are not recorded in the commercial
register
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I. Introduction (cont)
There are difficulties in effectively
assessing the informal economy.
That difficulties are linked:
1. Scoped to the informal sector
2. At the unavailability of data sources
3. The lack of financial and human
resources to collect information annually
to the relevant units.
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II. Goal
This study aims at providing a method
of accounting of the informal sector
according to the approach by the
workforce.
It will focus on Burkina Faso's nonagricultural informal economy in
2009.
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III. Methodology
The methodology that we will use
comprises three steps. It consists of:
1.
Developing a matrix of employment
2.
Estimating output per capita and per capita
wage;
3.
Estimate the value added and employment in the
informal sector by branches of activity.
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III. Methodology (cont)
1. Development of the
employment matrix
The approach is to use data from the
General Census of Population and Housing
(RGPH) and The ultimate survey on
household living conditions (EICVM).
.
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Indicators used
1.1 Population aged over 15 years in 2009.
(
).
1.2 working population in 2009 (
).
1.3 working population according to the
employer in 2009 (Public, para-public,
private formal, private informal).
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structural parameters used
1.4 Percentage of the employed labor force in
2009 (
).
1.5 structure of the working population by
employer.
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Estimation formulas used
1.6 working population in 2009 was equal to
the proportion of that population multiplied by
the population aged 15 years and older..
1.7 working population of area X (SectX) in 2009 is
equal to the proportion of that population
multiplied by the number of the employed
population.
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Distribution of employment by industry
according to employer (public, para - public and
private formal)
1.8 Employees of public workers and the para-public are
provided annually by administrative sources and additional
collections.
3.4 The number of formal private workers are provided
annually by the Statistics and Tax Statements (DSF) that
companies file with the Statistic Institute (INSD ) through
the General management of taxes (DGI).
3.5 Total employees found with previous formula allows
analysis and arbitration if possible of the estimate
provided by the sources and additional collections.
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Distribution of employment by
industry in the informal private
1.9 The numbers of non-formal private workers are provided
by the following formula.
The number of employed people in the informal sector is equal
to the proportion of the working population in the informal
sector multiplied by the total employed population.
3.7 The distribution of non-formal private workers by branch is
done using the structure provided by the Industrial and
Commercial Census.
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Distribution of employment by industry
in the informal private (cont)
The size of the working population of the branch i is the
proportion of workers in the informal sector of the industry
multiplied by the number of employed people in the informal
sector.
Where
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Distribution of workers by status of
employment
1.10 For each branch, the working population
in the informal sector can be broken down by
employees status (employees of informal
private, independent, employers, other assets).
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Distribution of workers by status of
employment (cont.)
1.11 The number of employees salaried in the
informal private of the branch i is equal to the
proportion of informal sector employees
salaried multiplied by the number of employed
people in the informal sector.
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Distribution of workers by status of
employment (cont.)
The same formula is used for all status with
following notation in formula
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2. Estimated production per head and per
capita wage
The ideal data source for estimating the parameters required
by this method is a survey type 1-2; The latest survey on the
informal sector are obsolete, we used the RIC(2009) and the
previous year's accounts.
Production of non-commercial branches is estimated with the
turnover of Informal production unit (IPU).
The production of commercial branches is estimated with
gross margins of IPU.
For the branches not covered by the RIC or branches for
which the RIC does not fully covered, the previous year's
accounts have been used as source of information.
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3.Estimate the value added and salary
in the informal sector by industries
The approach is to estimate the total production of
each branch by using the array of employment and
output per worker of each branch.
The value added of the branch i is obtained by
multiplying the total output of the industry through its
technical coefficient (CI/P).
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IV. Data sources
This approach is intended to use the
following data sources :
1. the General Census of Population and
Housing (RGPH)
2. the Industrial and Commercial Census (RIC)
3. the National Survey of Employment and the
Informal Sector (ENESI)
4. The ultimate survey on household living
conditions (EICVM).
5. National accounts of year 2008.
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V. Results
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V. Results
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V. Results (cont)
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Ababa, Ethiopia
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VI. Methods of integration in the
national accounts
It is a discussion that I propose to show a
methodology to integrate the following
results in the NA.
The methodology comprises four (4) steps.
Step1: Integrate production and employment as
calculated by the method during pre-arbitration work;
Step2: make corrections on the production during
balance between supply and use works;
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VI. Methods of integration in the
national accounts (cont.)
Step3: make a final adjudication on the value added
by analyzing the balance between supply and demand
for intermediate consumption;
Step4: deciding on the level of production and added
value and correct the actual job keeping unchanged
output per head before turning to account synthesis
work.
N.B. Steps 2,3 and 4 may be iterative
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VII. Conclusion
This study found:
• propose a method for assessing the
informal economy;
• This method is to improve; due to its
simple implementation, it can inspire
countries to take into account the
results of household survey in the
estimation of the informal economy.
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Thank you
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