Informal and Non-Standard Employment: A Look at the Impact on Social Protection Policy

Abstract

The objective of this working paper is to review the literature on informal and non-standard employment and to highlight the increased awareness of the global society about trends in labor markets and their implications for workers and social protection policy. This paper presents information on developing, emerging, and advanced economies, especially the United States. Evidence and hypothetical findings suggest that working-life poverty and retirement income insecurity are the main consequences of the growth in informal and non-standard employment arrangements. High risks of poverty and vulnerability among workers emphasize the important role of the state and in particular public social insurance and non-contributory pension programs.