Employment rate in the informal sector
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The indicator represents the percentage of employed persons in informal economic units, in relation to the total population of employed persons. The indicator includes independent and dependent workers who work in informal economic units, regardless of whether they have a formal or informal job. The number of these workers is expressed as a percentage of the total of employed persons. According to the updating data process, indicators with population projections based on 2017 Census will be gradually incorporated into the platform, for more information, see “Other comments” of this metadata.

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Click to expand Name of collection/source
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National Labour Force Survey (ENE).

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National Labour Force Survey. Suitable informant.

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Statistics of Labour Informality - Methodological Background.

Click to expand Source Periodicity
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Beginning in the July-September 2017 quarter.

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Household survey.

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Monthly.

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The week (Monday to Sunday) before the period of collection. The ENE can have four or five reference weeks, depending on the month. Each week of collection has a mobile reference week that varies according to the week of collection.

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Sampling of the ENE has two stages and is probabilistic. The two stages refer to the First Stage Sampling Unit (UPE), which is the block (urban) or section (rural), and the Second Stage Sampling Unit (USE), which is the private occupied dwelling. Probabilistic means that the selection of the UPE in each stratum is proportional to the size of the unit in relation to the number of dwellings (USE) and that the probability of selection of the USE is equal for all dwellings within the UPE.

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Percentage.

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Dictionary of variables available for download on the website of the database of the National Employment Survey.

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(1) ICSE classification: Classification of types of occupations, based on a relationship of dependency and subordination. (2) CIIU4.cl 2012, according to CAENES: Classification used to identify the branch of economic activity of the economic unit that pays the employed person or that the employed person owns.

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(Employed persons in units of the Informal Sector)*100/(Total number of employed persons).

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A "Yes" is imputed to the variable focused on knowing whether the company, business, or institution that pays the salary to the wage earners (i1) has registered with the Internal Revenue Service (SII), only under two scenarios. The first scenario includes all those cases where it is declared that the institution that pays the wages or salary has not registered with the SII or no information is available to answer this question (Does not know) or the informant refuses to answer (Does not answer), but the institution or organization belongs to the branches of economic activity "public administration" or "extraterritorial bodies". The second scenario includes those cases in which the company or business is declared to lack registration and accounting (i2), but a verifiable company or business name (variable i3) is provided in the National Directory of Companies (DNE) of INE.

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Informal Sector: Grouping of economic units engaged in the production of goods or the provision of services. The primary purpose of these economic units is to create jobs and generate income for persons who participate in their activities. These economic units are defined as belonging to the Informal Sector because they have not registered with the Internal Revenue Service (SII) and do not have accounting that separates work income and household income.

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Quarterly sampling weights (name in the database: "fact").

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Click to expand Other comments
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As part of the process of strengthening the National Labour Force Survey (ENE), which includes a new method of calibration of sampling weights according to the population projections based on 2017 Census, a process of updating the platform is being carried on in order to allow INE.Stat reflects the improvements in the updated figures that are published monthly, therefore, from now on, the platform will be updated gradually to provide our users with all the relevant information. At the moment, information is left available to users according to the old calibration method, that is, population projections based on 2002 Census, with information from January-March 2010 to October-December 2019 and, the update of the disaggregation: National and regional according to sex and mobile quarter of the unemployment rate, participation rate, occupation rate and informal occupation rate.

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The indicator refers to the percentage of employed persons in informal economic units, regardless of whether they are informal or formal employed persons. Thus, this indicator seeks to measure the quantity of jobs that the informal sector creates. In public policy, it is important to characterize the informal sector and create specific measures for the formalization of economic units and of the jobs they create. The definition of informal employment used by Chile is based on the ILO guidelines and recommendations for the measurement of labour informality statistics. The definition also incorporates international experience in the production of official statistics and the particularities of legislation and the Chilean labour market.

Employment rate in the informal sectorAbstract

The indicator represents the percentage of employed persons in informal economic units, in relation to the total population of employed persons. The indicator includes independent and dependent workers who work in informal economic units, regardless of whether they have a formal or informal job. The number of these workers is expressed as a percentage of the total of employed persons. According to the updating data process, indicators with population projections based on 2017 Census will be gradually incorporated into the platform, for more information, see “Other comments” of this metadata.

Contact person/organisation

Department of Labour Statistics - National Statistics Institute. Contract: Subdepartment of Citizen Information.

Citizen Informationmailto:ine@ine.cl
Data source(s) used

Household survey.

Name of collection/source

National Labour Force Survey (ENE).

Direct source

National Labour Force Survey. Suitable informant.

Source Periodicity

Beginning in the July-September 2017 quarter.

Source metadata

Statistics of Labour Informality - Methodological Background.

Statistics of Labour Informalityhttps://www.ine.cl/docs/default-source/informalidad-y-condiciones-laborales/metodologia/antecedentes-metodologicos/manual-conceptual-y-metodol%C3%B3gico-informalidad-laboral.pdf?sfvrsn=afad6bfc_5?len=en
Unit of measure used

Percentage.

Variables collected

Dictionary of variables available for download on the website of the database of the National Employment Survey.

ENE Databasehttp://www.ine.cl/estadisticas/laborales/ene/base-de-datos?len=en
Sampling

Sampling of the ENE has two stages and is probabilistic. The two stages refer to the First Stage Sampling Unit (UPE), which is the block (urban) or section (rural), and the Second Stage Sampling Unit (USE), which is the private occupied dwelling. Probabilistic means that the selection of the UPE in each stratum is proportional to the size of the unit in relation to the number of dwellings (USE) and that the probability of selection of the USE is equal for all dwellings within the UPE.

Periodicity

Monthly.

Reference period

The week (Monday to Sunday) before the period of collection. The ENE can have four or five reference weeks, depending on the month. Each week of collection has a mobile reference week that varies according to the week of collection.

Link to Release calendar

Statisctical Agendahttp://www.ine.cl/inicio/agendaestadistica?len=enStatistical population

Total of employed persons.

Geographic coverage

The population living in Chile, excluding collective housing. Also excluded, because of operational problems, are areas of difficult access (ADA) and blocks with seven or fewer dwellings.

Sector coverage

All economic sectors used in the classification CIIU4.cl 2012, according to CAENES are covered. It should be noted that the branch of economic activity refers to the sector of the economic unit, company, or business that pays the wages of the employed person (in the case of dependent workers) or that the employed persons owns (in the case of independent workers). Thus, the branch of economic activity or sector may differ from the one in which the employed person works, if the employed person works in a subcontracted economic unit.

Classifier of economic activitieshttp://www.ine.cl/docs/default-source/laborales/ene/publicaciones/clasificador-de-actividades-econ%C3%B3micas-nacional-para-encuestas-sociodemogr%C3%A1ficas-(caenes).pdf?sfvrsn=4?len=en
Population coverage

Total of employed persons.

Key statistical concept

Informal Sector: Grouping of economic units engaged in the production of goods or the provision of services. The primary purpose of these economic units is to create jobs and generate income for persons who participate in their activities. These economic units are defined as belonging to the Informal Sector because they have not registered with the Internal Revenue Service (SII) and do not have accounting that separates work income and household income.

Classification(s) used

(1) ICSE classification: Classification of types of occupations, based on a relationship of dependency and subordination. (2) CIIU4.cl 2012, according to CAENES: Classification used to identify the branch of economic activity of the economic unit that pays the employed person or that the employed person owns.

Estimation

(Employed persons in units of the Informal Sector)*100/(Total number of employed persons).

Imputation

A "Yes" is imputed to the variable focused on knowing whether the company, business, or institution that pays the salary to the wage earners (i1) has registered with the Internal Revenue Service (SII), only under two scenarios. The first scenario includes all those cases where it is declared that the institution that pays the wages or salary has not registered with the SII or no information is available to answer this question (Does not know) or the informant refuses to answer (Does not answer), but the institution or organization belongs to the branches of economic activity "public administration" or "extraterritorial bodies". The second scenario includes those cases in which the company or business is declared to lack registration and accounting (i2), but a verifiable company or business name (variable i3) is provided in the National Directory of Companies (DNE) of INE.

Weights

Quarterly sampling weights (name in the database: "fact").

Dissemination format(s)

Monthly Bulletin of the ENE - Quarterly Bulletin of Labour Informality - Database - Tabulations.

Statistics of Labour Informalityhttp://www.ine.cl/estadisticas/laborales/informalidad-laboral?len=en
Recommended uses and limitations

The indicator refers to the percentage of employed persons in informal economic units, regardless of whether they are informal or formal employed persons. Thus, this indicator seeks to measure the quantity of jobs that the informal sector creates. In public policy, it is important to characterize the informal sector and create specific measures for the formalization of economic units and of the jobs they create. The definition of informal employment used by Chile is based on the ILO guidelines and recommendations for the measurement of labour informality statistics. The definition also incorporates international experience in the production of official statistics and the particularities of legislation and the Chilean labour market.

Quality comments

Reliability Criterion of the estimator (CV): unreliable estimator: Coefficient of variation greater than 20%. Descriptive use: Coefficient of variation between 15% and 20%. Reliable estimator: Coefficient of variation between 5% and 15% or Coefficient of variation between 0% and 5%.

Statistics of Labour Informalityhttp://www.ine.cl/estadisticas/laborales/informalidad-laboral?len=en
Other comments

As part of the process of strengthening the National Labour Force Survey (ENE), which includes a new method of calibration of sampling weights according to the population projections based on 2017 Census, a process of updating the platform is being carried on in order to allow INE.Stat reflects the improvements in the updated figures that are published monthly, therefore, from now on, the platform will be updated gradually to provide our users with all the relevant information. At the moment, information is left available to users according to the old calibration method, that is, population projections based on 2002 Census, with information from January-March 2010 to October-December 2019 and, the update of the disaggregation: National and regional according to sex and mobile quarter of the unemployment rate, participation rate, occupation rate and informal occupation rate.