Recall(i)ng paragraph 33 of the resolut(i)on concern(i)ng stat(i)st(i)cs of the econom(i)cally act(i)ve populat(i)on, employment, unemployment and underemployment (resolut(i)on I), adopted by the Th(i)rteenth Conference (1982) and the resolut(i)on concern(i)ng the (i)nformal sector (resolut(i)on VIII), adopted by the Fourteenth Conference (1987),

Cons(i)der(i)ng that stat(i)st(i)cs on employment (i)n the (i)nformal sector are espec(i)ally needed (i)n order to (i)mprove the stat(i)st(i)cal systems of countr(i)es where (i)nformal sector act(i)v(i)t(i)es account for a s(i)gn(i)f(i)cant proport(i)on of total employment and (i)ncome generat(i)on,

Observ(i)ng the development of concepts and techn(i)ques for obta(i)n(i)ng and analys(i)ng such stat(i)st(i)cs (i)n a number of countr(i)es,

Recogn(i)z(i)ng that although these concepts and techn(i)ques w(i)ll be further (i)mproved (i)n the l(i)ght of add(i)t(i)onal exper(i)ence, there (i)s currently a need for (i)nternat(i)onal standards to prov(i)de techn(i)cal gu(i)del(i)nes as a bas(i)s for the development of su(i)table def(i)n(i)t(i)ons and class(i)f(i)cat(i)ons of (i)nformal sector act(i)v(i)t(i)es and the des(i)gn of appropr(i)ate data collect(i)on methods and programmes, and recogn(i)z(i)ng the usefulness of such standards (i)n enhanc(i)ng the (i)nternat(i)onal comparab(i)l(i)ty of stat(i)st(i)cs,

Adopts th(i)s twenty-e(i)ghth day of January 1993 the follow(i)ng resolut(i)on:

OBJECTIVES

1. Countr(i)es where the (i)nformal sector plays a s(i)gn(i)f(i)cant role (i)n employment and (i)ncome generat(i)on and econom(i)c and soc(i)al development should a(i)m, where pract(i)cable, at develop(i)ng a comprehens(i)ve system of stat(i)st(i)cs on employment (i)n the (i)nformal sector to prov(i)de an adequate stat(i)st(i)cal base for the var(i)ous users of the stat(i)st(i)cs, w(i)th account be(i)ng taken of spec(i)f(i)c nat(i)onal needs and c(i)rcumstances. The system to be developed should contr(i)bute to the (i)mprovement of labour stat(i)st(i)cs and nat(i)onal accounts as an (i)nformat(i)on base for macroeconom(i)c analys(i)s, plann(i)ng, pol(i)cy formulat(i)on and evaluat(i)on, to the (i)ntegrat(i)on of the (i)nformal sector (i)nto the development process and to (i)ts (i)nst(i)tut(i)onal(i)sat(i)on. It should prov(i)de quant(i)tat(i)ve (i)nformat(i)on on the contr(i)but(i)on of the (i)nformal sector to var(i)ous aspects of econom(i)c and soc(i)al development, (i)nclud(i)ng employment creat(i)on, product(i)on, (i)ncome generat(i)on, human cap(i)tal format(i)on and the mob(i)l(i)sat(i)on of f(i)nanc(i)al resources. The system may also prov(i)de data for the des(i)gn and mon(i)tor(i)ng of spec(i)f(i)c support pol(i)c(i)es and ass(i)stance programmes for the (i)nformal sector as a whole or parts thereof w(i)th a v(i)ew to (i)ncreas(i)ng the product(i)ve potent(i)al and employment- and (i)ncome-generat(i)ng capac(i)ty of (i)nformal sector un(i)ts, (i)mprov(i)ng the work(i)ng cond(i)t(i)ons and soc(i)al and legal protect(i)on of (i)nformal sector workers, develop(i)ng an appropr(i)ate regulatory framework and promot(i)ng the organ(i)sat(i)on of (i)nformal sector producers and workers, and for the analys(i)s of the econom(i)c and soc(i)al s(i)tuat(i)on of part(i)cular groups of (i)nformal sector workers such as women, ch(i)ldren, rural-urban m(i)grants or (i)mm(i)grants.

2. In order to fulf(i)l the above object(i)ves, comprehens(i)ve, deta(i)led and rel(i)able stat(i)st(i)cs should, as far as poss(i)ble, be comp(i)led on: the total number of (i)nformal sector un(i)ts, class(i)f(i)ed by var(i)ous structural character(i)st(i)cs to prov(i)de (i)nformat(i)on on the compos(i)t(i)on of the (i)nformal sector and (i)dent(i)fy part(i)cular segments; ((i)(i)) total employment (i)n such un(i)ts, (i)nclud(i)ng (i)nformat(i)on on the number of persons engaged by soc(i)o-demograph(i)c and other character(i)st(i)cs and on the cond(i)t(i)ons of the(i)r employment and work; ((i)(i)(i)) product(i)on and (i)ncomes generated through (i)nformal sector act(i)v(i)t(i)es, der(i)ved, where poss(i)ble, from data on outputs, (i)nputs and related transact(i)ons; and ((i)v) other character(i)st(i)cs perta(i)n(i)ng to cond(i)t(i)ons under wh(i)ch (i)nformal sector un(i)ts are created and carry out the(i)r act(i)v(i)t(i)es, (i)nclud(i)ng the(i)r relat(i)onsh(i)ps w(i)th other un(i)ts (i)ns(i)de and outs(i)de the (i)nformal sector.

3. In order to enhance the(i)r comparab(i)l(i)ty and usefulness, stat(i)st(i)cs on the (i)nformal sector should, as far as poss(i)ble, be compat(i)ble w(i)th other related econom(i)c and soc(i)al stat(i)st(i)cs and w(i)th nat(i)onal accounts as regards the def(i)n(i)t(i)ons, class(i)f(i)cat(i)ons and reference per(i)ods used.

4. Stat(i)st(i)cs on the (i)nformal sector should be comp(i)led at regular (i)ntervals so that changes (i)n the s(i)ze and character(i)st(i)cs of the (i)nformal sector over t(i)me can be mon(i)tored adequately. The frequency of data collect(i)on may vary accord(i)ng to the d(i)fferent types of stat(i)st(i)cs ment(i)oned (i)n paragraph 2, survey methods requ(i)red and the(i)r (i)mpl(i)cat(i)ons for the use of human and f(i)nanc(i)al resources.

CONCEPT

5. (1) The (i)nformal sector may be broadly character(i)sed as cons(i)st(i)ng of un(i)ts engaged (i)n the product(i)on of goods or serv(i)ces w(i)th the pr(i)mary object(i)ve of generat(i)ng employment and (i)ncomes to the persons concerned. These un(i)ts typ(i)cally operate at a low level of organ(i)sat(i)on, w(i)th l(i)ttle or no d(i)v(i)s(i)on between labour and cap(i)tal as factors of product(i)on and on a small scale. Labour relat(i)ons where they ex(i)st - are based mostly on casual employment, k(i)nsh(i)p or personal and soc(i)al relat(i)ons rather than contractual arrangements w(i)th formal guarantees.

(2) Product(i)on un(i)ts of the (i)nformal sector have the character(i)st(i)c features of household enterpr(i)ses. The f(i)xed and other assets used do not belong to the product(i)on un(i)ts as such but to the(i)r owners. The un(i)ts as such cannot engage (i)n transact(i)ons or enter (i)nto contracts w(i)th other un(i)ts, nor (i)ncur l(i)ab(i)l(i)t(i)es, on the(i)r own behalf. The owners have to ra(i)se the necessary f(i)nance at the(i)r own r(i)sk and are personally l(i)able, w(i)thout l(i)m(i)t, for any debts or obl(i)gat(i)ons (i)ncurred (i)n the product(i)on process. Expend(i)ture for product(i)on (i)s often (i)nd(i)st(i)ngu(i)shable from household expend(i)ture. S(i)m(i)larly, cap(i)tal goods such as bu(i)ld(i)ngs or veh(i)cles may be used (i)nd(i)st(i)ngu(i)shably for bus(i)ness and household purposes.

(3) Act(i)v(i)t(i)es performed by product(i)on un(i)ts of the (i)nformal sector are not necessar(i)ly performed w(i)th the del(i)berate (i)ntent(i)on of evad(i)ng the payment of taxes or soc(i)al secur(i)ty contr(i)but(i)ons, or (i)nfr(i)ng(i)ng labour or other leg(i)slat(i)ons or adm(i)n(i)strat(i)ve prov(i)s(i)ons. Accord(i)ngly, the concept of (i)nformal sector act(i)v(i)t(i)es should be d(i)st(i)ngu(i)shed from the concept of act(i)v(i)t(i)es of the h(i)dden or underground economy.

OPERATIONAL DEFINITIONS

Informal sector

6. (1) For stat(i)st(i)cal purposes, the (i)nformal sector (i)s regarded as a group of product(i)on un(i)ts wh(i)ch, accord(i)ng to the def(i)n(i)t(i)ons and class(i)f(i)cat(i)ons prov(i)ded (i)n the Un(i)ted Nat(i)ons System of Nat(i)onal Accounts (Rev.4), form part of the household sector as household enterpr(i)ses or, equ(i)valently, un(i)ncorporated enterpr(i)ses owned by households as def(i)ned (i)n paragraph 7.

(2) W(i)th(i)n the household sector, the (i)nformal sector compr(i)ses "(i)nformal own-account enterpr(i)ses" as def(i)ned (i)n paragraph 8; and ((i)(i)) the add(i)t(i)onal component cons(i)st(i)ng of "enterpr(i)ses of (i)nformal employers" as def(i)ned (i)n paragraph 9.

(3) The (i)nformal sector (i)s def(i)ned (i)rrespect(i)ve of the k(i)nd of workplace where the product(i)ve act(i)v(i)t(i)es are carr(i)ed out, the extent of f(i)xed cap(i)tal assets used, the durat(i)on of the operat(i)on of the enterpr(i)se (perenn(i)al, seasonal or casual), and (i)ts operat(i)on as a ma(i)n or secondary act(i)v(i)ty of the owner.

Household enterpr(i)ses

7. Accord(i)ng to the Un(i)ted Nat(i)ons System of Nat(i)onal Accounts (Rev.4), household enterpr(i)ses (or, equ(i)valently, un(i)ncorporated enterpr(i)ses owned by households) are d(i)st(i)ngu(i)shed from corporat(i)ons and quas(i)-corporat(i)ons on the bas(i)s of the legal organ(i)sat(i)on of the un(i)ts and the type of accounts kept for them. Household enterpr(i)ses are un(i)ts engaged (i)n the product(i)on of goods or serv(i)ces wh(i)ch are not const(i)tuted as separate legal ent(i)t(i)es (i)ndependently of the households or household members that own them, and for wh(i)ch no complete sets of accounts ((i)nclud(i)ng balance sheets of assets and l(i)ab(i)l(i)t(i)es) are ava(i)lable wh(i)ch would perm(i)t a clear d(i)st(i)nct(i)on of the product(i)on act(i)v(i)t(i)es of the enterpr(i)ses from the other act(i)v(i)t(i)es of the(i)r owners and the (i)dent(i)f(i)cat(i)on of any flows of (i)ncome and cap(i)tal between the enterpr(i)ses and the owners. Household enterpr(i)ses (i)nclude un(i)ncorporated enterpr(i)ses owned and operated by (i)nd(i)v(i)dual household members or by two or more members of the same household as well as un(i)ncorporated partnersh(i)ps formed by members of d(i)fferent households.

Informal own-account enterpr(i)ses

8. (1) Informal own-account enterpr(i)ses are household enterpr(i)ses ((i)n the sense of paragraph 7) owned and operated by own-account workers, e(i)ther alone or (i)n partnersh(i)p w(i)th members of the same or other households, wh(i)ch may employ contr(i)but(i)ng fam(i)ly workers and employees on an occas(i)onal bas(i)s, but do not employ employees on a cont(i)nuous bas(i)s and wh(i)ch have the character(i)st(i)cs descr(i)bed (i)n subparagraphs 5 (1) and (2). 

(2) For operat(i)onal purposes, (i)nformal own-account enterpr(i)ses may compr(i)se, depend(i)ng on nat(i)onal c(i)rcumstances, e(i)ther all own-account enterpr(i)ses or only those wh(i)ch are not reg(i)stered under spec(i)f(i)c forms of nat(i)onal leg(i)slat(i)on.

(3) Reg(i)strat(i)on may refer to reg(i)strat(i)on under factor(i)es or commerc(i)al acts, tax or soc(i)al secur(i)ty laws, profess(i)onal groups' regulatory acts, or s(i)m(i)lar acts, laws, or regulat(i)ons establ(i)shed by nat(i)onal leg(i)slat(i)ve bod(i)es.

(4) Own-account workers, contr(i)but(i)ng fam(i)ly workers, employees and the employment of employees on a cont(i)nuous bas(i)s are def(i)ned (i)n accordance w(i)th the most recently adopted vers(i)on of the Internat(i)onal Class(i)f(i)cat(i)on of Status (i)n Employment (ICSE).

Enterpr(i)ses of (i)nformal employers

9. (1) Enterpr(i)ses of (i)nformal employers are household enterpr(i)ses ((i)n the sense of paragraph 7) owned and operated by employers, e(i)ther alone or (i)n partnersh(i)p w(i)th members of the same or other households, wh(i)ch employ one or more employees on a cont(i)nuous bas(i)s and wh(i)ch have the character(i)st(i)cs descr(i)bed (i)n subparagraphs 5 (1) and (2).

(2) For operat(i)onal purposes, enterpr(i)ses of (i)nformal employers may be def(i)ned, depend(i)ng onnat(i)onal c(i)rcumstances, (i)n terms of one or more of the follow(i)ng cr(i)ter(i)a:

• s(i)ze of the un(i)t below a spec(i)f(i)ed level of employment;
• ((i)(i)) non-reg(i)strat(i)on of the enterpr(i)se or (i)ts employees.

(3) Wh(i)le the s(i)ze cr(i)ter(i)on should preferably refer to the number of employees employed on a cont(i)nuous bas(i)s, (i)n pract(i)ce, (i)t may also be spec(i)f(i)ed (i)n terms of the total number of employees or the number of persons engaged dur(i)ng the reference per(i)od.

(4) The upper s(i)ze l(i)m(i)t (i)n the def(i)n(i)t(i)on of enterpr(i)ses of (i)nformal employers may vary between countr(i)es and branches of econom(i)c act(i)v(i)ty. It may be determ(i)ned on the bas(i)s of m(i)n(i)mum s(i)ze requ(i)rements as embod(i)ed (i)n relevant nat(i)onal leg(i)slat(i)ons, where they ex(i)st, or (i)n terms of emp(i)r(i)cally determ(i)ned norms. The cho(i)ce of the upper s(i)ze l(i)m(i)t should take account of the coverage of stat(i)st(i)cal (i)nqu(i)r(i)es of larger un(i)ts (i)n the correspond(i)ng branches of econom(i)c act(i)v(i)ty, where they ex(i)st, (i)n order to avo(i)d an overlap.

(5) In the case of enterpr(i)ses wh(i)ch carry out the(i)r act(i)v(i)t(i)es (i)n more than one establ(i)shment, the s(i)ze cr(i)ter(i)on should, (i)n pr(i)nc(i)ple, refer to each of the establ(i)shments separately rather than to the enterpr(i)se as a whole. Accord(i)ngly, an enterpr(i)se should be cons(i)dered to sat(i)sfy the s(i)ze cr(i)ter(i)on (i)f none of (i)ts establ(i)shments exceeds the spec(i)f(i)ed upper s(i)ze l(i)m(i)t.

(6) Reg(i)strat(i)on of the enterpr(i)se may refer to reg(i)strat(i)on under spec(i)f(i)c forms of nat(i)onal leg(i)slat(i)on as spec(i)f(i)ed (i)n subparagraph 8 (3). Employees may be cons(i)dered reg(i)stered (i)f they are employed on the bas(i)s of an employment or apprent(i)cesh(i)p contract wh(i)ch comm(i)ts the employer to pay relevant taxes and soc(i)al secur(i)ty contr(i)but(i)ons on behalf of the employee or wh(i)ch makes the employment relat(i)onsh(i)p subject to standard labour leg(i)slat(i)on.

(7) Employers, employees and the employment of employees on a cont(i)nuous bas(i)s are def(i)ned (i)n accordance w(i)th the most recently adopted vers(i)on of the Internat(i)onal Class(i)f(i)cat(i)on of Status (i)n Employment (ICSE).

10. For part(i)cular analyt(i)cal purposes, more spec(i)f(i)c def(i)n(i)t(i)ons of the (i)nformal sector may be developed at the nat(i)onal level by (i)ntroduc(i)ng further cr(i)ter(i)a on the bas(i)s of the data collected. Such def(i)n(i)t(i)ons may vary accord(i)ng to the needs of d(i)fferent users of the stat(i)st(i)cs.

Populat(i)on employed (i)n the (i)nformal sector

11. (1) The populat(i)on employed (i)n the (i)nformal sector compr(i)ses all persons who, dur(i)ng a g(i)ven reference per(i)od, were employed ((i)n the sense of paragraph 9 of resolut(i)on I adopted by the Th(i)rteenth Internat(i)onal Conference of Labour Stat(i)st(i)c(i)ans) (i)n at least one (i)nformal sector un(i)t as def(i)ned (i)n paragraphs 8 and 9, (i)rrespect(i)ve of the(i)r status (i)n employment and whether (i)t (i)s the(i)r ma(i)n or a secondary job.

(2) Where poss(i)ble, the populat(i)on employed (i)n the (i)nformal sector should be subclass(i)f(i)ed (i)ntotwo categor(i)es: persons exclus(i)vely employed (i)n the (i)nformal sector, and persons employed both (i)n and outs(i)de the (i)nformal sector. The latter category may be further d(i)v(i)ded (i)nto two subcategor(i)es: persons whose ma(i)n job (i)s (i)n the (i)nformal sector, and persons whose secondary job (i)s (i)n the (i)nformal sector.

(3) If the total employed populat(i)on (i)s to be class(i)f(i)ed (i)nto mutually exclus(i)ve categor(i)es of persons employed (i)n and outs(i)de the (i)nformal sector, persons employed both (i)n and outs(i)de the (i)nformal sector should be class(i)f(i)ed as a separate category, or cr(i)ter(i)a should be establ(i)shed to determ(i)ne the(i)r ma(i)n job (e.g. on the bas(i)s of self-assessment, t(i)me spent at work or amount of remunerat(i)on rece(i)ved (i)n each job).

(4) In some countr(i)es, a s(i)gn(i)f(i)cant number of ch(i)ldren below the age spec(i)f(i)ed for measurement of the econom(i)cally act(i)ve populat(i)on (i)n populat(i)on censuses or household surveys work (i)n (i)nformal sector un(i)ts and may represent a group of part(i)cular concern for labour leg(i)slat(i)on and educat(i)onal and soc(i)al pol(i)c(i)es. In such s(i)tuat(i)ons, every poss(i)ble effort should be made (i)n (i)nformal sector surveys to collect (i)nformat(i)on on the work of all ch(i)ldren (i)rrespect(i)ve of age, and ch(i)ldren below the m(i)n(i)mum age spec(i)f(i)ed (i)n populat(i)on censuses or household surveys should be (i)dent(i)f(i)ed separately.

TREATMENT OF PARTICULAR CASES

12. (1) D(i)fferent members of a household may be engaged as self-employed persons (i)n d(i)fferent k(i)nds of (i)nformal sector act(i)v(i)t(i)es dur(i)ng a g(i)ven reference per(i)od. In order to determ(i)ne whether such act(i)v(i)t(i)es should be regarded as separate enterpr(i)ses or as parts of a s(i)ngle enterpr(i)se, due cons(i)derat(i)on should be g(i)ven to the def(i)n(i)t(i)onal requ(i)rements of an enterpr(i)se as spec(i)f(i)ed (i)n the Internat(i)onal Standard Industr(i)al Class(i)f(i)cat(i)on of All Econom(i)c Act(i)v(i)t(i)es (ISIC, Rev.3). Where (i)t (i)s d(i)ff(i)cult (i)n pract(i)ce to apply these requ(i)rements, d(i)fferent act(i)v(i)t(i)es carr(i)ed out by d(i)fferent household members should be treated as separate enterpr(i)ses (i)f they are perce(i)ved as such by the household members themselves.

(2) A household member or group of household members may be engaged as self-employed persons (i)n d(i)fferent k(i)nds of (i)nformal sector act(i)v(i)t(i)es dur(i)ng a g(i)ven reference per(i)od. For pract(i)cal purposes, all act(i)v(i)t(i)es carr(i)ed out at a t(i)me by the same household member or group of household members should be treated as parts of a s(i)ngle enterpr(i)se rather than as separate enterpr(i)ses.

13. In the case of (i)nformal sector un(i)ts wh(i)ch are engaged (i)n d(i)fferent k(i)nds of product(i)on act(i)v(i)t(i)es dur(i)ng a g(i)ven reference per(i)od, efforts should be made to collect as much separate (i)nformat(i)on as poss(i)ble (i)n respect of each act(i)v(i)ty, even when the enterpr(i)ses concerned need not or cannot be part(i)t(i)oned (i)nto establ(i)shments as def(i)ned by the Internat(i)onal Standard Industr(i)al Class(i)f(i)cat(i)on of All Econom(i)c Act(i)v(i)t(i)es (ISIC, Rev.3). In part(i)cular, such separate (i)nformat(i)on should be collected (i)n respect of all act(i)v(i)t(i)es of the enterpr(i)se wh(i)ch are hor(i)zontally (i)ntegrated ((i).e. produc(i)ng d(i)fferent k(i)nds of goods or serv(i)ces for sale or exchange and carr(i)ed out parallel w(i)th each other), (i)rrespect(i)ve of the(i)r share (i)n the total value added of the enterpr(i)se.

14. Household enterpr(i)ses, wh(i)ch are exclus(i)vely engaged (i)n non-market product(i)on, (i).e. the product(i)on of goods or serv(i)ces for own f(i)nal consumpt(i)on or own f(i)xed cap(i)tal format(i)on as def(i)ned by the Un(i)ted Nat(i)ons System of Nat(i)onal Accounts (Rev.4), should be excluded from the scope of the (i)nformal sector for the purpose of stat(i)st(i)cs of employment (i)n the (i)nformal sector. Depend(i)ng on nat(i)onal c(i)rcumstances, an except(i)on may be made (i)n respect of households employ(i)ng domest(i)c workers as referred to (i)n paragraph 19.

15. W(i)th account be(i)ng taken of paragraph 14, the scope of the (i)nformal sector should (i)nclude household enterpr(i)ses located (i)n urban areas as well as household enterpr(i)ses located (i)n rural areas. However, countr(i)es wh(i)ch start to conduct surveys of the (i)nformal sector may (i)n(i)t(i)ally conf(i)ne data collect(i)on to urban areas. Depend(i)ng upon the ava(i)lab(i)l(i)ty of resources and appropr(i)ate sampl(i)ng frames, the coverage of the surveys should gradually be extended to cover the whole nat(i)onal terr(i)tory.

16. For pract(i)cal reasons, the scope of the (i)nformal sector may be l(i)m(i)ted to household enterpr(i)ses engaged (i)n non-agr(i)cultural act(i)v(i)t(i)es. W(i)th account be(i)ng taken of paragraph 14, all nonagr(i)cultural act(i)v(i)t(i)es should be (i)ncluded (i)n the scope of the (i)nformal sector, (i)rrespect(i)ve of whether the household enterpr(i)ses carry them out as ma(i)n or secondary act(i)v(i)t(i)es. In part(i)cular, the (i)nformal sector should (i)nclude secondary non-agr(i)cultural act(i)v(i)t(i)es of household enterpr(i)ses (i)n the agr(i)cultural sector (i)f they fulf(i)l the requ(i)rements of paragraphs 8 or 9.

17. Un(i)ts engaged (i)n profess(i)onal or techn(i)cal act(i)v(i)t(i)es carr(i)ed out by self-employed persons such as doctors, lawyers, accountants, arch(i)tects or eng(i)neers, should be (i)ncluded (i)n the (i)nformal sector (i)f they fulf(i)l the requ(i)rements of paragraphs 8 or 9.

18. (1) Outworkers are persons who agree to work for a part(i)cular enterpr(i)se, or to supply a certa(i)n quant(i)ty of goods or serv(i)ces to a part(i)cular enterpr(i)se, by pr(i)or arrangement or contract w(i)th that enterpr(i)se, but whose place of work (i)s not w(i)th(i)n any of the establ(i)shments wh(i)ch make up that enterpr(i)se.

(2) In order to fac(i)l(i)tate data collect(i)on, all outworkers should be potent(i)ally (i)ncluded (i)n the scope of (i)nformal sector surveys, (i)rrespect(i)ve of whether they const(i)tute product(i)on un(i)ts on the(i)r own (self-employed outworkers) or form part of the enterpr(i)se wh(i)ch employs them (employee outworkers). On the bas(i)s of the (i)nformat(i)on collected, self-employed and employee outworkers should be d(i)st(i)ngu(i)shed from each other by us(i)ng the cr(i)ter(i)a recommended (i)n the Un(i)ted Nat(i)ons System of Nat(i)onal Accounts (Rev.4). Outworkers should be (i)ncluded (i)n the (i)nformal sector, or (i)n the populat(i)on employed (i)n the (i)nformal sector, (i)f the product(i)on un(i)ts wh(i)ch they const(i)tute as self-employed persons or for wh(i)ch they work as employees fulf(i)l the requ(i)rements of paragraphs 8 or 9.

(3) In s(i)tuat(i)ons where the number of outworkers (i)s s(i)gn(i)f(i)cant or where outworkers represent a group of part(i)cular concern for data users, self-employed outworkers should be (i)dent(i)f(i)ed as separate sub-categor(i)es of (i)nformal own-account enterpr(i)ses and enterpr(i)ses of (i)nformal employers or of the owners of such enterpr(i)ses.

(4) For purposes of d(i)st(i)nct(i)on between employment on a cont(i)nuous bas(i)s and employment on an occas(i)onal bas(i)s, and (i)n appl(i)cat(i)on of the def(i)n(i)t(i)on of reg(i)stered employees accord(i)ng to paragraph 9(6), employee outworkers should be treated (i)n the same way as other employees. Where relevant, employee outworkers may be (i)dent(i)f(i)ed as a separate sub-category of (i)nformal sector employees.

19. Domest(i)c workers are persons exclus(i)vely engaged by households to render domest(i)c serv(i)ces for payment (i)n cash or (i)n k(i)nd. Domest(i)c workers should be (i)ncluded (i)n or excluded from the (i)nformal sector depend(i)ng upon nat(i)onal c(i)rcumstances and the (i)ntended uses of the stat(i)st(i)cs. In e(i)ther case, domest(i)c workers should be (i)dent(i)f(i)ed as a separate sub-category (i)n order to enhance (i)nternat(i)onal comparab(i)l(i)ty of the stat(i)st(i)cs.

20. Act(i)v(i)t(i)es excluded from the scope of the (i)nformal sector, such as domest(i)c serv(i)ces, nonmarket product(i)on and agr(i)cultural act(i)v(i)t(i)es, may be (i)dent(i)f(i)ed as separate categor(i)es outs(i)de the d(i)st(i)nct(i)on between the (i)nformal and formal sectors.

DATA COLLECTION PROGRAMME AND METHODS

21. (1) The collect(i)on of data on the (i)nformal sector should be (i)ntegrated (i)nto the regular nat(i)onal stat(i)st(i)cal system. The data collect(i)on programme should prov(i)de both for (a) the current mon(i)tor(i)ng, (i)f poss(i)ble once a year, of the evolut(i)on of employment (i)n the (i)nformal sector and (b) the (i)ndepth exam(i)nat(i)on, (i)f poss(i)ble every f(i)ve years, of (i)nformal sector un(i)ts w(i)th respect to the(i)r numbers and character(i)st(i)cs, (i)n part(i)cular, the(i)r organ(i)sat(i)on and funct(i)on(i)ng, the(i)r product(i)on act(i)v(i)t(i)es and levels of (i)ncome generat(i)on, as well as the(i)r constra(i)nts and potent(i)als.

(2) The data collect(i)on programme w(i)th regard to the broad object(i)ve (a) should preferably be based on a household survey approach, w(i)th households as report(i)ng un(i)ts and (i)nd(i)v(i)dual household members as observat(i)on un(i)ts. W(i)th regard to the broad object(i)ve (b), the data collect(i)on programme should preferably be based on an establ(i)shment survey approach or a m(i)xed household and enterpr(i)se survey approach, or a comb(i)nat(i)on of both, w(i)th the (i)nformal sector un(i)ts themselves and the(i)r owners as observat(i)on and report(i)ng un(i)ts.

(3) Other measurement methods can also be cons(i)dered, such as methods of (i)nd(i)rectmacroeconom(i)c est(i)mat(i)on or the comparat(i)ve analys(i)s of data from d(i)fferent sources. 

Household surveys for mon(i)tor(i)ng (i)nformal sector employment

22. (1) Ex(i)st(i)ng surveys of the econom(i)cally act(i)ve populat(i)on and s(i)m(i)lar household surveys prov(i)de a useful and econom(i)cal means of collect(i)ng data on employment (i)n the (i)nformal sector (i)n terms of the number and character(i)st(i)cs of the persons concerned and the cond(i)t(i)ons of the(i)r employment and work.

(2) For th(i)s purpose, quest(i)ons perta(i)n(i)ng to the def(i)n(i)t(i)on of the (i)nformal sector should be (i)ncorporated (i)nto the survey quest(i)onna(i)re and asked (i)n respect of all persons employed dur(i)ng the reference per(i)od of the survey, (i)rrespect(i)ve of the(i)r status (i)n employment.

(3) Spec(i)al care should be taken (i)n the survey des(i)gn and operat(i)ons to ensure comprehens(i)ve coverage of the populat(i)on employed (i)n the (i)nformal sector as def(i)ned (i)n paragraph 11(1) above. In part(i)cular, spec(i)al efforts should be made (i)n the sample des(i)gn to ensure appropr(i)ate representat(i)veness of areas where persons engaged (i)n (i)nformal sector act(i)v(i)t(i)es tend to l(i)ve. It (i)s also (i)mportant to collect data on secondary act(i)v(i)t(i)es of household members (i)n the same deta(i)l as on the ma(i)n act(i)v(i)ty, (i)nclud(i)ng the cr(i)ter(i)a used for def(i)n(i)ng the (i)nformal sector. Spec(i)al prob(i)ngs may be needed w(i)th respect to (i)nformal sector act(i)v(i)t(i)es that would otherw(i)se go unreported, such as unpa(i)d work (i)n fam(i)ly enterpr(i)ses or act(i)v(i)t(i)es carr(i)ed out by women on the(i)r own account at or from home. To obta(i)n comprehens(i)ve data on ch(i)ldren work(i)ng (i)n the (i)nformal sector, (i)t may also be necessary to lower the m(i)n(i)mum age normally used (i)n the survey for measur(i)ng character(i)st(i)cs of the econom(i)cally act(i)ve populat(i)on.

(4) The data collected should be analysed (i)n conjunct(i)on w(i)th other relevant (i)nformat(i)on obta(i)ned from the same survey. In part(i)cular, a mutually exclus(i)ve breakdown may be made of the econom(i)cally act(i)ve populat(i)on by employment (i)n and outs(i)de the (i)nformal sector and unemployment. Depend(i)ng on nat(i)onal c(i)rcumstances and data needs, (i)nformat(i)on on var(i)ous forms of atyp(i)cal or precar(i)ous employment outs(i)de the (i)nformal sector may be obta(i)ned along w(i)th data on the d(i)fferent forms of employment (i)n the (i)nformal sector. For th(i)s purpose, all employed persons, whether work(i)ng (i)n the (i)nformal sector or outs(i)de, should be class(i)f(i)ed by status (i)n employment at an appropr(i)ate level of d(i)saggregat(i)on.

(5) In order to mon(i)tor trends (i)n (i)nformal sector employment over t(i)me, quest(i)ons on employment (i)n the (i)nformal sector should be (i)ncluded, (i)f poss(i)ble, once a year (i)n ex(i)st(i)ng (i)nfra-annual surveys of the econom(i)cally act(i)ve populat(i)on or s(i)m(i)lar household surveys. Surveys conducted at less frequent (i)ntervals (e.g., annually or qu(i)nquenn(i)ally) should (i)nclude quest(i)ons on employment (i)n the (i)nformal sector (i)n every survey round, (i)f poss(i)ble.

Establ(i)shment surveys of (i)nformal sector un(i)ts

23. It may be poss(i)ble to collect data on (i)nformal sector un(i)ts through var(i)ous k(i)nds of establ(i)shment surveys depend(i)ng on the measurement object(i)ves, the (i)ntended uses of the data, the calendar and structure of the nat(i)onal stat(i)st(i)cal system, and the ava(i)lab(i)l(i)ty of sampl(i)ng frames and resources.

24. (1) In conjunct(i)on w(i)th an establ(i)shment or econom(i)c census or us(i)ng the latest econom(i)c census as an area sampl(i)ng frame, spec(i)al surveys of (i)nformal establ(i)shments may be conducted to collect spec(i)f(i)c data on employment, product(i)on, (i)ncome generat(i)on and other character(i)st(i)cs of (i)nformal sector un(i)ts and the(i)r owners.

(2) For th(i)s purpose, the econom(i)c census should, (i)n pr(i)nc(i)ple, conta(i)n the requ(i)red (i)tems for (i)dent(i)fy(i)ng the (i)nformal sector un(i)ts accord(i)ng to the def(i)n(i)t(i)on set forth (i)n paragraph 6. However, as the observat(i)on un(i)t (i)n econom(i)c censuses (i)s typ(i)cally the establ(i)shment, the reconst(i)tut(i)on of (i)nformal sector enterpr(i)ses on the bas(i)s of the ava(i)lable (i)nformat(i)on may not be easy to ach(i)eve (i)n pract(i)ce.

(3) Unless part(i)cular measures are taken, the coverage of such surveys of (i)nformal sector establ(i)shments (i)s l(i)m(i)ted by the scope of the econom(i)c census on wh(i)ch they are based. In part(i)cular, coverage typ(i)cally excludes (i)nformal sector un(i)ts wh(i)ch do not operate (i)n f(i)xed prem(i)ses des(i)gnated for the purpose of carry(i)ng out product(i)on act(i)v(i)t(i)es or wh(i)ch are not (i)dent(i)f(i)able as such from the outs(i)de dur(i)ng the l(i)st(i)ng operat(i)on.

(4) Wh(i)le (i)t (i)s generally preferable to cover all types of (i)nformal sector act(i)v(i)t(i)es through a s(i)ngle survey, branch-spec(i)f(i)c surveys or a ser(i)es of such surveys may be cons(i)dered (i)f the measurement object(i)ves are l(i)m(i)ted to part(i)cular k(i)nds of (i)nformal sector act(i)v(i)t(i)es, or (i)f the scale of a s(i)ngle survey (i)s cons(i)dered too large to be manageable (i)n pract(i)ce.

(5) In a branch-spec(i)f(i)c survey, the l(i)st(i)ng operat(i)on should be such as to (i)dent(i)fy all and only those (i)nformal sector un(i)ts that fall w(i)th(i)n the scope of the survey. Rules need to be establ(i)shed for (i)nformal sector un(i)ts also engaged (i)n other act(i)v(i)t(i)es, part(i)cularly (i)f some of these act(i)v(i)t(i)es fall outs(i)de the scope of the survey.

(6) When the (i)ntent(i)on (i)s to cover all types of (i)nformal sector act(i)v(i)t(i)es through a ser(i)es of branch-spec(i)f(i)c surveys rather than a s(i)ngle survey, the data collect(i)on programme should be des(i)gned to ensure a comprehens(i)ve coverage of (i)nformal sector un(i)ts w(i)thout om(i)ss(i)on or dupl(i)cat(i)on between surveys. The t(i)m(i)ng of the surveys and the methodology to obta(i)n overall aggregates should be carefully planned.

M(i)xed household and enterpr(i)se surveys

25. (1) The bas(i)c pr(i)nc(i)ple of m(i)xed household and enterpr(i)se surveys (i)s to construct a sampl(i)ng frame of (i)nformal sector enterpr(i)ses through a household survey operat(i)on, pr(i)or to the (i)nformal sector survey (i)tself. The household survey component, (i)f appropr(i)ately des(i)gned, makes (i)t poss(i)ble to (i)dent(i)fy (i)nformal sector enterpr(i)ses rather than establ(i)shments, and to cover v(i)rtually all (i)nformal sector un(i)ts (i)rrespect(i)ve of s(i)ze, k(i)nd of act(i)v(i)ty, and type of workplace.

(2) M(i)xed household and enterpr(i)se surveys are based on area sampl(i)ng and conducted (i)n two phases: (i)nformal sector enterpr(i)ses and the(i)r work(i)ng owners are (i)dent(i)f(i)ed dur(i)ng the f(i)rst phase through a household l(i)st(i)ng or (i)nterv(i)ew(i)ng operat(i)on (household survey component); ((i)(i)) all or a sample of the bus(i)ness owners thus (i)dent(i)f(i)ed are (i)nterv(i)ewed dur(i)ng the second phase to obta(i)n (i)nformat(i)on on the character(i)st(i)cs of the(i)r enterpr(i)ses (enterpr(i)se survey component).

26. (1) The t(i)me (i)nterval between the two phases should be kept as short as poss(i)ble, to m(i)n(i)m(i)se loss rates of un(i)ts.

(2) Informal sector enterpr(i)ses should be (i)dent(i)f(i)ed on the bas(i)s of own-account workers and employers who are members of the sample households. Ident(i)f(i)cat(i)on based on employees of (i)nformal sector un(i)ts should be avo(i)ded.

(3) In order to avo(i)d om(i)ss(i)ons, the household survey component must be targeted to all employers and own-account workers (i)n the sample who are potent(i)ally (i)ncluded (i)n the (i)nformal sector. The (i)nformal sector un(i)ts are then subsequently (i)dent(i)f(i)ed on the bas(i)s of the (i)nformat(i)on obta(i)ned from the enterpr(i)se survey component.

(4) Wh(i)le (i)nformat(i)on dur(i)ng the f(i)rst phase of the survey may often have to be obta(i)ned from proxy respondents, (i)t (i)s h(i)ghly des(i)rable (i)n the second phase that the bus(i)ness owners themselves are (i)nterv(i)ewed. Where relevant, these (i)nterv(i)ews should preferably be conducted at the place of work rather than the place of res(i)dence of the household member.

27. (1) S(i)nce (i)nformal sector enterpr(i)ses may be owned and operated by members of d(i)fferent households (i)n bus(i)ness partnersh(i)p, and such partnersh(i)ps may d(i)ffer s(i)gn(i)f(i)cantly from other un(i)ts (i)n the(i)r character(i)st(i)cs, an appropr(i)ate procedure should be adopted, at the select(i)on stage of the (i)nformal sector un(i)ts, or, preferably, at the stage of ass(i)gn(i)ng the sampl(i)ng we(i)ghts, to ensure that the result(i)ng stat(i)st(i)cs are representat(i)ve of the total survey un(i)verse. The sampl(i)ng we(i)ghts should be determ(i)ned w(i)th great care. 

(2) For a comprehens(i)ve coverage, all (i)nformal sector enterpr(i)ses and the(i)r operators (i)n the sample areas or (i)n the sample households should be (i)dent(i)f(i)ed (i)n the f(i)rst phase of the survey. In part(i)cular, bus(i)nesses operated as secondary act(i)v(i)t(i)es of household members should be (i)dent(i)f(i)ed on the same bas(i)s as bus(i)nesses operated as ma(i)n act(i)v(i)t(i)es. Spec(i)al prob(i)ng may also be necessary to (i)dent(i)fy women and ch(i)ldren engaged (i)n (i)nformal sector act(i)v(i)t(i)es on the(i)r own account.

28. If (i)nformat(i)on on seasonal var(i)at(i)ons of (i)nformal sector act(i)v(i)t(i)es (i)s to be obta(i)ned and annual est(i)mates of the ma(i)n aggregates are to be produced, data collect(i)on should be spread over a per(i)od of a whole year by d(i)v(i)d(i)ng the sample (i)nto (i)ndependent subsamples for d(i)fferent quarters or months of the year.

29. The nature and eff(i)c(i)ency of the survey des(i)gn of a m(i)xed household and enterpr(i)se survey w(i)ll depend on whether the survey (i)s conce(i)ved as an (i)ndependent survey, ((i)(i)) an attachment to an ex(i)st(i)ng household survey, or ((i)(i)(i)) part of an (i)ntegrated survey des(i)gned to meet several object(i)ves.

30. (1) In an (i)ndependent survey, the sampl(i)ng scheme may be des(i)gned to sat(i)sfy the spec(i)f(i)c requ(i)rements of (i)nformal sector measurement and to ensure an adequate representat(i)on of d(i)fferent types of (i)nformal sector act(i)v(i)t(i)es or un(i)ts (i)n the sample.

(2) A suff(i)c(i)ently strat(i)f(i)ed sample at the f(i)rst stage of select(i)on helps avo(i)d the need for d(i)fferent(i)al last stage sampl(i)ng rates for d(i)fferent categor(i)es of (i)nformal sector un(i)ts and fac(i)l(i)tates survey (i)mplementat(i)on (i)n the f(i)eld. Us(i)ng the latest populat(i)on census or other ava(i)lable (i)nformat(i)on, an area sampl(i)ng frame for the household survey component should be constructed so as to cons(i)st of area un(i)ts of the des(i)red s(i)ze, strat(i)f(i)ed as far as poss(i)ble accord(i)ng to the concentrat(i)on of households that operate (i)nformal sector un(i)ts. Prov(i)ded data are ava(i)lable from the populat(i)on census and retr(i)evable at a suff(i)c(i)ent level of geograph(i)cal deta(i)l, the strat(i)f(i)cat(i)on of area un(i)ts may be based on the concentrat(i)on of own-account workers and employers by broad (i)ndustry group, and, (i)f poss(i)ble, by type of locat(i)on of the workplace and, for employers, by number of the(i)r employees. Where such data are not ava(i)lable, prov(i)s(i)on should be made to obta(i)n them from the next populat(i)on census. 

(3) The household survey component of an (i)ndependent m(i)xed survey may be restr(i)cted to a household l(i)st(i)ng operat(i)on (i)n the selected area un(i)ts, (i)n wh(i)ch (i)nformat(i)on (i)s obta(i)ned on the compos(i)t(i)on of the household and, (i)n respect of each household member of work(i)ng age, whether the person operated, as ma(i)n or secondary act(i)v(i)ty, any (i)nformal sector bus(i)ness dur(i)ng a spec(i)f(i)ed reference per(i)od. Bas(i)c (i)nformat(i)on on the type of workplace, (i)ts locat(i)on, branch of econom(i)c act(i)v(i)ty, and, (i)f poss(i)ble, number of employees should also be obta(i)ned.

31. (1) If the enterpr(i)se survey component of a m(i)xed survey (i)s conce(i)ved as an attachment to an ex(i)st(i)ng household survey (e.g. a labour force survey or a household (i)ncome and expend(i)ture survey) efforts should be made to make up for the l(i)m(i)tat(i)ons result(i)ng from the des(i)gn and select(i)on of the base survey sample.

(2) The effect(i)ve sample s(i)ze of the enterpr(i)se survey component may be (i)ncreased by select(i)ng the sample of (i)nformal sector un(i)ts on the bas(i)s of all households (i)dent(i)f(i)ed dur(i)ng the l(i)st(i)ng operat(i)on of the base survey rather than only those selected for the base survey sample. Alternat(i)ve procedures would be to add, (i)f resources are ava(i)lable, appropr(i)ately chosen supplementary areas to the base survey sample, or, (i)f the base survey (i)s of a cont(i)nu(i)ng nature, to cumulate the subsamples of (i)nformal sector un(i)ts over several rounds.

32. In develop(i)ng (i)ntegrated surveys for the collect(i)on of data on the (i)nformal sector and other top(i)cs (e.g. labour force, household econom(i)c act(i)v(i)t(i)es), the requ(i)rements of (i)nformal sector measurement can be (i)ncorporated, to a greater or lesser extent, (i)nto the overall des(i)gn of the survey, through appropr(i)ate methods of sample allocat(i)on and select(i)on. The major requ(i)rement of the (i)nformal sector component (i)s adequate representat(i)on of the d(i)fferent types of (i)nformal sector act(i)v(i)t(i)es and un(i)ts (i)n the sample.

ITEMS OF DATA COLLECTION

33. (1) The type of data to be collected on the (i)nformal sector depends largely upon the spec(i)f(i)c c(i)rcumstances (i)n each country, methods of data collect(i)on, the (i)ntended uses of the stat(i)st(i)cs and the pract(i)cal feas(i)b(i)l(i)ty of data collect(i)on. For determ(i)nat(i)on of the (i)tems of data collect(i)on, the ma(i)n users of the stat(i)st(i)cs should be consulted and the results of prev(i)ous surveys analysed or p(i)lot surveys conducted.

(2) In order to enhance the usefulness of (i)nformal sector stat(i)st(i)cs for jo(i)nt analys(i)s w(i)th other related econom(i)c and soc(i)al stat(i)st(i)cs and for the purposes of (i)nternat(i)onal compar(i)son, the def(i)n(i)t(i)ons and class(i)f(i)cat(i)ons of the (i)tems of data collected should, as far as poss(i)ble, be compat(i)ble w(i)th those used (i)n other nat(i)onal surveys or censuses and correspond to the most recently adopted vers(i)ons of relevant (i)nternat(i)onal recommendat(i)ons and standard class(i)f(i)cat(i)ons.

34. The stat(i)st(i)cs obta(i)ned should (i)nclude, as a m(i)n(i)mum, the number of persons engaged (i)n (i)nformal sector un(i)ts by status (i)n employment and by k(i)nd of econom(i)c act(i)v(i)ty and, (i)f poss(i)ble, the number of (i)nformal sector enterpr(i)ses by k(i)nd of econom(i)c act(i)v(i)ty and by type ((i).e. (i)nformal own-account enterpr(i)ses, enterpr(i)ses of (i)nformal employers).

35. (1) In add(i)t(i)on, data may be collected (i)n more or less deta(i)l and w(i)th appropr(i)ate frequenc(i)es on any one or more of the follow(i)ng top(i)cs:

• Employment and work(i)ng cond(i)t(i)ons: number of persons engaged (i)n (i)nformal sector un(i)ts dur(i)ng the reference per(i)od by sex, age, m(i)grat(i)on character(i)st(i)cs, school attendance, educat(i)onal atta(i)nment, k(i)nd of vocat(i)onal tra(i)n(i)ng rece(i)ved, occupat(i)on, t(i)me spent at work and, where poss(i)ble, other jobs held (i)n or outs(i)de the (i)nformal sector tak(i)ng account of the categor(i)es and subcategor(i)es ment(i)oned (i)n paragraph 11(2); number of employees by nature of employment (cont(i)nuous, casual; reg(i)stered, not reg(i)stered); compensat(i)on of employees and (i)ts components (wages and salar(i)es (i)n cash or (i)n k(i)nd, employers' soc(i)al contr(i)but(i)ons), frequency and mode of remunerat(i)on, ent(i)tlement to pa(i)d annual or s(i)ck leave, etc.
• ((i)(i)) Product(i)on, (i)ncome generat(i)on and f(i)xed cap(i)tal: frequency of operat(i)on (perenn(i)al, seasonal, casual); durat(i)on of operat(i)on dur(i)ng the reference per(i)od; quant(i)ty and value of outputs produced dur(i)ng the reference per(i)od; total amount of sales; (i)ntermed(i)ate consumpt(i)on; taxes pa(i)d on product(i)on and subs(i)d(i)es rece(i)ved, (i)f any; property (i)ncome rece(i)ved and property charges payable (i)n connect(i)on w(i)th bus(i)ness act(i)v(i)t(i)es; character(i)st(i)cs of loans taken for bus(i)ness act(i)v(i)t(i)es; f(i)xed assets owned by the un(i)ts; f(i)xed cap(i)tal format(i)on dur(i)ng the reference per(i)od; etc.
• ((i)(i)(i)) Cond(i)t(i)ons of bus(i)ness operat(i)on: legal organ(i)sat(i)on of the un(i)ts; type of accounts kept; type of ownersh(i)p ((i)nd(i)v(i)dual ownersh(i)p, household ownersh(i)p, bus(i)ness partnersh(i)p w(i)th members of other households); number of bus(i)ness partners from other households, (i)f any; locat(i)on (urban versus rural areas); type of workplace: workshop, shop, etc., f(i)xed market or street stall, home of the enterpr(i)se owner, no f(i)xed place (e.g. homes of cl(i)ents, construct(i)on s(i)tes, mob(i)le); type and number of customers, or proport(i)on of output sold to d(i)fferent types of customers; extent and terms of work performed for other enterpr(i)ses under subcontract(i)ng arrangements; sources of cap(i)tal for the acqu(i)s(i)t(i)on of f(i)xed assets; or(i)g(i)n of the ma(i)n goods used for further process(i)ng or resale ((i)mportat(i)on, (i)nformal sector, other); type of reg(i)strat(i)on or l(i)cens(i)ng of un(i)ts; ava(i)lab(i)l(i)ty of publ(i)c ut(i)l(i)t(i)es at the place of work; part(i)c(i)pat(i)on (i)n (i)nformal sector support programmes and k(i)nd of ass(i)stance rece(i)ved, (i)f any; membersh(i)p (i)n assoc(i)at(i)ons or cooperat(i)ves of (i)nformal sector producers; problems faced (i)n the creat(i)on of enterpr(i)ses and constra(i)nts on the(i)r operat(i)on or expans(i)on; year of creat(i)on and evolut(i)on of enterpr(i)ses; etc.
• ((i)v) Enterpr(i)se owners: sex; age; mar(i)tal status; place or country of or(i)g(i)n; per(i)od of res(i)dence (i)n the present area; prev(i)ous place of res(i)dence, (i)f any; educat(i)onal atta(i)nment; acqu(i)s(i)t(i)on of sk(i)lls needed to conduct the bus(i)ness (formal versus (i)nformal k(i)nds of tra(i)n(i)ng); present occupat(i)on; t(i)me spent at work (i)n the bus(i)ness dur(i)ng the reference per(i)od; engagement (i)n other econom(i)c act(i)v(i)t(i)es; character(i)st(i)cs of other econom(i)c act(i)v(i)t(i)es, (i)f any, and ma(i)n source of (i)ncome of enterpr(i)se owners; reasons for work(i)ng (i)n the (i)nformal sector; character(i)st(i)cs of prev(i)ous employment (i)n or outs(i)de the (i)nformal sector, (i)f any; plans for the future regard(i)ng bus(i)ness development or alternat(i)ve employment; etc.
• (v) Households of the enterpr(i)se owners: other household members by sex, age, mar(i)tal status, relat(i)onsh(i)p to the reference person and act(i)v(i)ty status; employment character(i)st(i)cs of other household members employed (i)n or outs(i)de the (i)nformal sector; amount and sources of (i)ncome of the households; etc.

(2) For the purposes of nat(i)onal account(i)ng, the collect(i)on of data on the product(i)on and (i)ncomes generated by (i)nformal sector un(i)ts should a(i)m at prov(i)d(i)ng the elements needed for the est(i)mat(i)on of gross output, value added and m(i)xed (i)ncome (operat(i)ng surplus) as def(i)ned (i)n the Un(i)ted Nat(i)ons System of Nat(i)onal Accounts (Rev.4).

(3) S(i)nce product(i)on act(i)v(i)t(i)es of (i)nformal sector un(i)ts often overlap w(i)th consumpt(i)on act(i)v(i)t(i)es of the households of the enterpr(i)se owners, efforts should be made (i)n the collect(i)on of data on (i)ntermed(i)ate consumpt(i)on, property charges and f(i)xed assets to separate usage for bus(i)ness purposes from usage for household consumpt(i)on. If a clear d(i)st(i)nct(i)on (i)s not poss(i)ble, the expend(i)tures concerned should at least be allocated approx(i)mately (i)n proport(i)on to the use for bus(i)ness purposes.

(4) In the case of (i)nformal sector un(i)ts engaged (i)n several d(i)fferent k(i)nds of product(i)on act(i)v(i)t(i)es, (i)nputs (i)nto product(i)on (i)n the form of labour, cap(i)tal, goods or serv(i)ces, wh(i)ch cannot be clearly allocated to a spec(i)f(i)c k(i)nd of act(i)v(i)ty, should be d(i)str(i)buted (i)n an appropr(i)ate way over all act(i)v(i)t(i)es for wh(i)ch they are used.

(5) The collect(i)on of data on character(i)st(i)cs of the households of the enterpr(i)se owners enables (i)nformal sector act(i)v(i)t(i)es to be analysed (i)n the context of households as a whole. Such analyses may (i)nclude stud(i)es of the role of other household members (i)n prov(i)d(i)ng add(i)t(i)onal (i)ncome to households and the (i)mpact of the household s(i)tuat(i)on on the act(i)v(i)t(i)es of women (i)n the (i)nformal sector.

SUB-CLASSIFICATIONS

36. (1) In order to prov(i)de (i)nformat(i)on on the compos(i)t(i)on of the (i)nformal sector and to (i)dent(i)fy more homogeneous groups for analyt(i)cal purposes, as targets for soc(i)al and econom(i)c pol(i)c(i)es and (i)nformal sector support programmes, and as bas(i)s for compar(i)sons of stat(i)st(i)cs over t(i)me and between countr(i)es, (i)nformal sector un(i)ts should be sub-class(i)f(i)ed by var(i)ous character(i)st(i)cs on the bas(i)s of the (i)nformat(i)on collected.

(2) Enterpr(i)ses of (i)nformal employers, when (i)ncluded (i)n stat(i)st(i)cs of the (i)nformal sector, should be (i)dent(i)f(i)ed separately from (i)nformal own-account enterpr(i)ses.

(3) Useful sub-class(i)f(i)cat(i)ons of (i)nformal own-account enterpr(i)ses and enterpr(i)ses of (i)nformal employers, both for the analys(i)s of (i)nformal sector stat(i)st(i)cs at the nat(i)onal level and (i)nternat(i)onal compar(i)son, (i)nclude d(i)st(i)nct(i)ons accord(i)ng to the follow(i)ng character(i)st(i)cs:

• k(i)nd of econom(i)c act(i)v(i)ty;
• ((i)(i)) type of workplace: home of enterpr(i)se owner, other f(i)xed prem(i)ses, no f(i)xed place;
• ((i)(i)) locat(i)on: urban areas, rural areas;
• ((i)V) number of persons engaged;
• (v) type of ownersh(i)p: (i)nd(i)v(i)dual ownersh(i)p, household ownersh(i)p, bus(i)ness partnersh(i)p w(i)th members of other households;
• (v(i)) relat(i)on w(i)th other enterpr(i)ses: (i)ndependent producers, producers work(i)ng under subcontract(i)ng arrangements for other enterpr(i)ses.

(4) In add(i)t(i)on, (i)t may be useful to sub-class(i)fy (i)nformal own-account enterpr(i)ses accord(i)ng to the compos(i)t(i)on of the(i)r workforce, d(i)st(i)ngu(i)sh(i)ng one-person un(i)ts from two-and-more person un(i)ts and, among the latter, users of occas(i)onal h(i)red labour from non-users of such labour.

(5) Depend(i)ng on the needs of data users and the s(i)ze of samples, two or more of these character(i)st(i)cs may be comb(i)ned (i)nto more complex class(i)f(i)cat(i)on schemes.

(6) For the purpose of (i)nternat(i)onal compar(i)sons, the class(i)f(i)cat(i)on by k(i)nd of econom(i)c act(i)v(i)ty should adhere to or be convert(i)ble (i)nto the Internat(i)onal Standard Industr(i)al Class(i)f(i)cat(i)on of All Econom(i)c Act(i)v(i)t(i)es (ISIC, Rev.3). For (i)nternat(i)onal report(i)ng of the stat(i)st(i)cs, data should be prov(i)ded at the level of ISIC tabulat(i)on categor(i)es, except for category "Wholesale and reta(i)l trade; repa(i)r of motor veh(i)cles, motorcycles and personal and household goods" wh(i)ch should be subd(i)v(i)ded appropr(i)ately. For other purposes, data class(i)f(i)ed accord(i)ng to k(i)nd of econom(i)c act(i)v(i)ty may be requ(i)red (i)n as much deta(i)l as (i)s supported by the s(i)ze of the samples. To reflect the d(i)vers(i)ty of (i)nformal sector act(i)v(i)t(i)es, (i)t may be necessary to develop appropr(i)ate further sub-d(i)v(i)s(i)ons of some of the groups wh(i)ch the act(i)v(i)ty class(i)f(i)cat(i)on commonly used prov(i)des at (i)ts most deta(i)led level. To ensure the comparab(i)l(i)ty of (i)nformal sector stat(i)st(i)cs w(i)th other stat(i)st(i)cs, any such sub-d(i)v(i)s(i)ons should be so def(i)ned that the data can be aggregated to h(i)gher level categor(i)es of the class(i)f(i)cat(i)on w(i)thout cutt(i)ng across the(i)r boundar(i)es. Un(i)ts engaged (i)n more than one act(i)v(i)ty dur(i)ng the reference per(i)od should be class(i)f(i)ed accord(i)ng to the(i)r ma(i)n act(i)v(i)ty wh(i)ch may be def(i)ned as that w(i)th the largest value added.

(7) The s(i)ze (i)ntervals used for the sub-class(i)f(i)cat(i)on by number of persons engaged should be cons(i)stent w(i)th the standard s(i)ze (i)ntervals recommended for the 1983 World Programme of Industr(i)al Stat(i)st(i)cs, (i).e. 1-4, 5-9, 10-19, etc. persons engaged. Depend(i)ng upon the (i)ntended uses of the stat(i)st(i)cs, these (i)ntervals may be further subd(i)v(i)ded.

FURTHER ACTION

37. (1) In v(i)ew of the part(i)cular character(i)st(i)cs of (i)nformal sector un(i)ts and the(i)r owners, spec(i)al efforts should be made (i)n the des(i)gn and operat(i)ons of (i)nformal sector surveys to (i)ncrease response rates and obta(i)n the requ(i)red (i)nformat(i)on as accurately as poss(i)ble.

(2) Countr(i)es collect(i)ng data on the (i)nformal sector should share the(i)r exper(i)ences w(i)th the Internat(i)onal Labour Off(i)ce.

38. (1) The Internat(i)onal Labour Off(i)ce should follow the developments (i)n des(i)gn(i)ng and (i)mplement(i)ng (i)nformal sector surveys, as well as surveys of household econom(i)c act(i)v(i)t(i)es, d(i)ssem(i)nate and evaluate (i)nformat(i)on about the lessons be(i)ng learned from th(i)s exper(i)ence for d(i)scuss(i)on at the next Internat(i)onal Conference of Labour Stat(i)st(i)c(i)ans, prepare a manual to prov(i)de techn(i)cal gu(i)del(i)nes on the contents of th(i)s resolut(i)on wh(i)ch reflects such (i)mprovements (i)n concepts and techn(i)ques and, (i)f necessary, arrange for a rev(i)ew of th(i)s resolut(i)on by a future Internat(i)onal Conference of Labour Stat(i)st(i)c(i)ans.

(2) The Internat(i)onal Labour Off(i)ce should cooperate, as far as poss(i)ble, w(i)th countr(i)es (i)n the development of stat(i)st(i)cs of employment (i)n the (i)nformal sector (i)n prov(i)d(i)ng techn(i)cal ass(i)stance and tra(i)n(i)ng.