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Skill training for the informal sector : analyzing the success and the limitations of support programs (English)

The term " informal sector " is ususally reserved for those small enterprises which utilize the most rudimentary and traditional technology and business practices. These business are usually unlicenced, unregulated and are virtually unknown to the government, thereby allowing their owners to avoid minimum wage, social security, tax obligations and other labor regulations. Since large scale industrialization has failed to materialize in many developing countries, development planners have increasingly turned to the informal sector as a source of economic growth. This paper discusses the effectiveness and limitations of programs already in place, which support skill training for this sector. Several effective programs have the following 5 elements : 1) careful participant selection; 2) job placement assistance; 3) consideration of infrastructural needs or community concerns; 4) efforts to match labor supply requirements; and 5) practical technical skills instruction ( including apprenticeships ) attached to businesses. Some limitations include a mismatch between trainee's skills and assumed skill requirements, the urban bias of programs, the oversight of new training technologies, the high cost of training and the external constraints on employment growth such as the macroeconomy and the prices of raw materials and fuels.


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    McLaughlin, Stephen

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    Skill training for the informal sector : analyzing the success and the limitations of support programs

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    informal sector;small and medium size enterprise;traditional apprenticeship;vocational training program;skill training programs;informal sector worker;informal sector operator;informal labor force;vocational training institution;lack of education;rural small enterprise;tree nursery management;availability of capital;traditional apprenticeship system;informal sector enterprise;skill train program;school of thought;international development community;vocational school leaver;lack of capital;vocational training course;skill and technology;improvement in productivity;high quality goods;cost of training;formal sector employment;informal economic sector;secondary school education;formal vocational education;demand for skill;rural training program;Management Systems;business management;Labor Market;raw material;skill development;automotive repair;entrepreneur;entrepreneurial development;electrical wiring;productive activity;local area;wage employment;trained worker;small producer;skilled labor;skilled manpower;rural area;business practice;



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McLaughlin, Stephen

Skill training for the informal sector : analyzing the success and the limitations of support programs (English). Population and Human Resources Department. Education and Employment Division background paper series ; no. PHREE 89 / 05 Washington, D.C. : World Bank Group.