MEASURING THE INFORMAL SECTOR IN MINDANAO

Regina Salve B. BaromaSharon Faye A. Piza

Anisabel SuitesDavao City19-20 March 2012

OUTLINE Operational definition of the informal sector Data sources Informal sector by location

Main island groupings Regions Provinces

Informal sector by industry Informal sector by demographic characteristics

Age Sex Educational attainment

Informal sector and welfare Poverty Conflict

THE INFORMAL SECTOR Defined by the class of worker

Worked for private households Worked without pay on own family-operated farm

or business Own account workers (self-employed)

Defined by the source of income (entrepreneurial income) entrepreneurial activities family operated businesses not formally

organized(any economic activity, business or enterprise whether in agriculture or in non-agriculture enterprise engaged in by any member of the family as operator or self employed)

DATA SOURCES1. Labor Force Survey (LFS)

quarterly household survey conducted by the National Statistics Office (NSO) that gathers data on labor and employment

Available Years: 1988-20092. Family Income and Expenditure Survey

(FIES) triennial household survey of the NSO that

collects data on income and expenditures of households

Available years: 1988, 1991, 1994, 1997, 2000, 2003, 2006 and 2009

SIZE OF INFORMAL SECTOR

19881990

1992199

41996

1998

20002002

2004200

62008

-

10

20

30

40

50

60

70

80

Philippines Luzon Visayas Mindanao

Perc

ent

1988 1991 1994 1997 2000 2003 2006 20090

10

20

30

40

50

60

70

80

Philippines LuzonVisayas Mindanao

employment income

REAL AVERAGE PER CAPITA INCOME IN THE INFORMAL SECTOR

1988 1991 1994 1997 2000 2003 2006 20090

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

PhilippinesLuzonVisayasMindanao

RELATIVE SHARE OF INFORMAL SECTOR BY MAIN ISLAND GROUPINGS

1988 1995 2000 2005 20090%10%20%30%40%50%60%70%80%90%

100%

Luzon Visayas Mindanao

1988

1991

1994

1997

2000

2003

2006

2009

0%10%20%30%40%50%60%70%80%90%

100%

Luzon Visayas Mindanao

Employment Income

INFORMAL EMPLOYMENT, BY REGION (2009)

Source: 2009 Labor Force Survey (LFS)

NCR

CAR

Iloco

s

Caga

yan

V

C. L

uzon

CALA

BARZ

ON

MIM

AROP

A

Bico

l

W. V

isaya

s

C. V

isaya

s

E. V

isaya

s

Zam

Pen

N. M

inda

nao

Dava

o

SOCC

SKSA

RGEN

ARM

M

CARA

GA

Luzon Visayas Mindanao

0102030405060708090

100

Perc

ent

SHARE TO TOTAL INCOME, BY REGION (2009)

NCR

CAR

Iloco

sCa

gaya

n V

C. L

uzon

CALA

BARZ

ONM

IMAR

OPA

Bico

lW

. Visa

yas

C. V

isaya

sE.

Visa

yas

Zam

Pen

N. M

inda

nao

Dava

oSO

CCSK

SARG

ENAR

MM

CARA

GA

Luzon Visayas Mindanao

0102030405060708090

100

Perc

ent

• ARMM also has the highest share of informal income while NCR has the lowest

AVERAGE PER CAPITA INCOME BY REGION, 2009

NCR

CAR

Iloco

sCa

gaya

n V

C. L

uzon

CALA

BARZ

ONM

IMAR

OPA

Bico

lW

. Visa

yas

C. V

isaya

sE.

Visa

yas

Zam

Pen

N. M

inda

nao

Dava

oSO

CCSK

SARG

ENAR

MM

Cara

ga

Luzon Visayas Mindanao

02,0004,0006,0008,000

10,00012,00014,00016,000

In p

esos

INFORMAL EMPLOYMENT, BY PROVINCE (1988 AND 2009)

SHARE TO TOTAL INCOME, BY PROVINCE (1988 AND 2009)

INFORMAL EMPLOYMENT BY INDUSTRY (%)

0

20

40

60

80

100

68.3

21.1

Service

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

0

20

40

60

80

100

72.0

29.4

Service

PHILIPPINES MINDANAO

REAL AVERAGE PER CAPITA INCOME BY INDUSTRY (2009 PRICES)

Agriculture Industry Services0

1000

2000

3000

4000

5000

6000

1988 2009

Agriculture Industry Services0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1988 2009

PHILIPPINES MINDANAO

INFORMAL EMPLOYMENT BY AGE GROUP (%)

15-24 25-49 50 and above

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

1988 2009

15-24 25-49 50 and above

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

1988 2009

PHILIPPINES MINDANAO

REAL PER CAPITA INCOME BY AGE GROUP (2009 PRICES)

15-24 25-49 50+0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1988 2009

15-24 25-49 50+0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1988 2009

Philippines Mindanao

Source: 1988-2009 Family Income and Expenditure Survey (FIES)

INFORMAL EMPLOYMENT BY SEX (%)

1988 20090

10

20

30

40

50

60

70

80

male female

1988 20090

10

20

30

40

50

60

70

80

male female

PHILIPPINES MINDANAO

Source: 1988-2009 Labor Force Survey (LFS)

REAL PER CAPITA INCOME BY SEX (2009 PRICES)

male female0

2,000

4,000

6,000

8,000

10,000

12,000

1988 2009

male female0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1988 2009

PHILIPPINES MINDANAO

Source: 1988-2009 Family Income and Expenditure Survey (FIES)

INFORMAL EMPLOYMENT BY EDUCATIONAL ATTAINMENT (%)

No Grad

e

Some e

lem

Elem gr

ad

Some H

S

HS grad

Some c

ollege

College

grad

0102030405060708090

1988 2009

No Grad

e

Some e

lem

Elem gr

ad

Some H

S

HS grad

Some c

ollege

College

grad

0102030405060708090

1988 2009

PHILIPPINES MINDANAO

REAL PER CAPITA INCOME BY EDUCATIONAL ATTAINMENT (2009 PRICES)

No grad

e

Some e

lem

Elem gr

ad

Some H

S

HS grad

Some c

ollege

College

grad

0

5,000

10,000

15,000

20,000

25,0001988 2009

No grad

e

Some e

lem

Elem gr

ad

Some H

S

HS grad

Some c

ollege

College

grad

0

5,000

10,000

15,000

20,000

25,0001988 2009

Philippines Mindanao

Source: 1988-2009 Family Income and Expenditure Survey (FIES)

INFORMAL EMPLOYMENT & POVERTY INCIDENCE

INFORMAL INCOME & POVERTY INCIDENCE

INFORMAL EMPLOYMENT AND POVERTY (2009)

20 30 40 50 60 70 80 900

10

20

30

40

50

60

Share of informal workers, (in %)

Pove

rty

Inci

denc

e, (

in %

)

INFORMAL EMPLOYMENT VS INCIDENCE OF CONFLICT

Source: 2009 Labor Force Survey (LFS) DSWD Disaster Response Operation Monitoring Information

System (DROMIC)

INFORMAL EMPLOYMENT & INCIDENCE OF CONFLICT

INFORMAL EMPLOYMENT AND CONFLICT (2009)

20 30 40 50 60 70 80 900

2

4

6

8

10

12

14

16

18

20

Source: 2000- 2009 Labor Force Survey (LFS) 2000- 2009 DSWD Disaster Response Operation Monitoring Information System (DROMIC)

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