Determinants and Implications of Hopping Between Formal and Informal Jobs in Nigeria

Abstract

Job hopping between formal and informal sectors represents an important driver of welfare and productivity changes. The study investigates the patterns, forms, and drivers of informality and factors determining hopping between formal and informal jobs in Nigeria. The data obtained from the general household surveys (GHS) was estimated with binary logistic regression technique within and between waves of each GHS across 13 primary economic activities in the formal and informal employment. The authors found high hopping from informal to formal in six sectors including manufacturing, buying and selling, construction, financial services, professional services, and education. Focus was also on dividing the households into three stages of life course. There is a greater hopping among early adulthood than any other age categories. Hence, bottlenecks to performance and productivity of the identified sectors should be adequately tacked to engender an improved formal sector characterised with better remuneration and living standards of its workers.