Informal Sector - Gender

Gender

Women tend to make up the greatest portion of the informal sector, often ending up in the most erratic and corrupt segments of the sector. Sixty percent of female workers in developing countries are employed by the informal sector. The reasoning behind why women make up majority of the informal sector is two-fold. Firstly, it could be attributed to the fact that employment in the informal sector is the source of employment that is most readily available to women. Secondly, a vast majority of women are employed from their homes (most likely due to the large number of women who are involved in care work) or are street vendors, which both are classified in the informal sector Furthermore, men tend to be overrepresented in the top segment of the sector and women overpopulate the bottom segment. For example, very few women are employers who hire others and more women are likely to be involved in smaller scale operations. Labor markets, household decisions, and states all propagate this gender inequality. The gender gap in terms of wage is even higher in the informal sector than the formal sector

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