Impact Assessment of Formal Employment in SenegalSubmitted by Admin on Wed, 04/17/2019 - 16:16
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 the Senegalese context. Over 200 employees were interviewed in 6 portfolio companies, covering several sectors, hierarchical levels and types of contractualization.
• 97% of companies in Senegal are informal
• Nearly 17% of Senegalese are officially considered unemployed in 2017 (a low figure compared to the actual situation, due to the large scale of the underground economy)
Main findings: what are the impacts of formalization?
→ A higher salary to sustain the entire household
- Wages are 60% higher than the national average
- Nearly 9 people on average per household
→ A greater inclusion in the labour market
- 60% of employees have signed their first employment contract
→ Essential social benefits
- 73% of employees accessing for the first to an health insurance
- A first participation to the retirement system for 78% of employees
→ Integration into the financial system
- 82% of formal employees have a bank account (versus 42% of informal employees)
- 50% of formal employees obtained a bank credit (versus 20% of informal employees)