Challenging the formality bias: The organization of informal work, working relations, and collective agency in Kenya and Tanzania

Abstract

Motivation

Formal social protection systems, such as health insurance and representation, are often biased in favour of formal workers, thereby excluding most of the world's working population who make a living in the informal economy.

Purpose

The article extends existing critiques of formality bias by investigating the reality of work for people in the informal economy in Kenya and Tanzania and analysing related social protection challenges. Specifically, we look at: (1) the governance of work; (2) the organization of work relations; and (3) collective agency. In terms of social protection, we focus on formal and informal forms of social insurance and representation.

Methods and approach

We draw on interview and survey data from people working in micro trading, transport, and construction in Nairobi and Kisumu in Kenya, and Dar es Salaam and Dodoma in Tanzania. A total of 1,462 workers were surveyed and 24 focus group discussions were held with such workers. Interviews were conducted with 120 key informants: leaders and members of informal workers' associations in the three sectors, as well as representatives of authorities, trade unions, and business associations. Data were collected from June 2018 to December 2019.

Findings

Formal social insurance and representation do not fit the real experience of most people working in the informal economy. They have been modelled on and designed to support workers in formal standard employment relations. At the same time, informal workers' associations play important roles in meeting—albeit inadequately—the social insurance and representational needs of their members.

Policy implications

Meaningful engagement with the reality of work and collective agency in the informal economy is necessary to inform more appropriate policies and measures to provide informal workers with appropriate social protection measures, particularly social insurance and representation. Their reality should not have to conform to an inadequate model; rather, the model should fit their reality.