Lopez Mendez, María Auxiliadora; Flores Pavon, Luis Roberto (2014). 'MULTIDIMENSIONAL POVERTY OF HOUSEHOLDS WITH INFORMAL EMPLOYMENT' Paper presented at the annual conference of the HDCA, 2-5 September 2014, Athens, Greece.

This study will determine the multidimensional poverty of households in informal employment, seen from the perspective of deprivation and capabilities. In principle determinants of informal employment are estimated, because there is still a official measure of informality in the country, this research aims to reach consensus definition with the recommendations made by the ILO, which depends on many observable and unobservable variables.  In principle this research measures the probability that an individual is employed in the informal sector of the Honduran economy. Conditional on a set of observable characteristics, related to: sex, age, educational attainment levels, labor qualification by occupation, size of the establishment where the person works, if the person has social security and if the person is deducted from your income taxes, and finally a constant representing the net influence of all unobserved or not explicitly included in the individual, his probability function.

As the second phase, we have determined that households have informal jobs and the segment of them who are poor and non-poor, providing socio demographic characterization of them, measuring for one of the strata, the different levels of poverty through 4 domains, comprising: Health, Education and Quality of Life, and so also 3 Thresholds of deprivation. With the above, to assess these domains, with respect to the multiple indicators of which are formed, for example: Infant Mortality, Years of Education, Access to Electricity, Types of Flooring, Fuel for cooking, Access to Safe Water, access to Adequate Sanitation, Asset Ownership, Nutrition, School Attendance, and others, which allow us to disaggregate the analysis by region (urban-rural), by indicator, gap and intensity to show the inequality between the segment poor. The information used for this study is provided by the Permanent Household Survey of Multiple Purposes, relieved by INE-Honduras, using a time series 2007-2013 for rounds made in May, to evaluate their dynamics and evolution of the indicators considered in 3 domains.  Note that the DHS (2006.2011) survey was not used, because the survey does not provide information for accessing electricity, essential to analyze access to basic household services and quality of life.

The results reveal that the size of the informal sector in Honduras is considerably higher in the Central American region, and is known to the authorities of the country that the conditions of households are poor and untreated from the context of deprivation and capabilities in Honduras, the reach of this study aims to answer the key indicators to provide better assistance from the emphasis of public policy and social inclusion.

The added value, is focused on those with multiple deficiencies and those without access to basic servicesto develop integrally, and thus also reveals the joint distribution of these. The incentive of this work serves to reach the poorest condition no decent jobs. deprived of labor rights and others that determine the quality of life in their homes, and so also will view the joint distribution of all these,

A challenge that emerges from this study is to measure the context of Honduras to the Gross National Happiness Index in conjunction with the Multidimensional Poverty Index as the official measure for the country.

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