Impact Assessment of Formal Employment in MadagascarSubmitted by Admin on Wed, 04/17/2019 - 16:20
I&P and FERDI (Foundation for Studies and Research on International Development) carried out a study on the social and economic impacts of employment and explored the impacts of an employment contract in Madagascar. 280 employees were interviewed in 5 portfolio companies, covering several sectors, hierarchical levels and types of contractualization.
Main findings: what are the impacts of formalization?
→ A higher salary to sustain the entire household
- Wages are 60% higher than the national average
- About 4 people on average per household
→ A greater inclusion in the labour market
- 23% of employees have signed their first employment contract
- 57% of employees experienced a period of unemployment before working in the company
→ Essential social benefits
- 56% of employees accessing for the first to an health insurance
- A first participation to the retirement system for 55% of employees
→ Integration into the financial system
- 80% of formal employees have a bank account (versus 20% of informal employees)
- 48% of formal employees obtained a bank credit (versus 6% of informal employees)