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3-5 July 2017
International Labour Office (ILO)
Europe/Berlin timezone
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Contribution

III (R3 south)

TRANSITION TO FORMALITY: THE CASE OF ECUADOR

Speakers

  • Dr. Raúl LORENTE CAMPOS

Primary authors

Co-authors

Description

"One of the major challenges of the ILO is the transition of economic and labour activity from informality to formality (ILO 204 recommendation, adopted at the 104th Conference held on 12 June 2015). Regarding southern societies, where the informal economy and informal work are a structural obstacle to development, and more specifically Latin America, the regional office of ILO had already developed the Program for the Promotion of the Formalisation FORLAC (2013). Formalisation is certainly linked to the objective of decent work promotion and the development of productive structures in a context of more inclusive economic growth. In this context, Ecuador has become a very interesting case with significant changes in terms of formalisation, labour market composition and labour and social security legal framework evolution. Between 2006 and 2016 there were 2 million more workers affiliated to the IESS (Source: IESS administrative data). Although the progress has been significant the phenomenon of economic and labour informality continues to be a huge problem affecting half of the country's working population. The aim of this paper is to analyse the evolution of informal to formal labour in Ecuador during the last decade, focusing on two current challenges of public politics: a) the way towards the inclusion of self-employed workers in the social security system; b) the inclusion of unpaid home workers (TNRH) in the Social Security system. By way of concluding, the paper will present some proposals of public policies that could be implemented to promote formalisation and decent work, with a gender perspective."