The informal economy is a sector of the economy that isn’t monitored or taxed. It forms a large part of developing countries, and while it provides work and wages, it’s much less secure or safe. The International Labor Organization estimates that around 60% of the world’s labor force works (at least part-time) in the informal economy. Why is this a gender issue? In low-income countries, 92.1% of employed women work in the informal economy compared to 87.5% of employed men. When the pandemic hit, women’s employment suffered the most. As an example, home-based workers earned 2% of their median pre-pandemic income in the middle of 2021 while in sub-Saharan Africa, 41% of women-owned businesses closed (compared to 34% of businesses owned by men). By supporting those in informal employment, countries can make progress on gender inequality. How? which type of support?
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