The hidden penalties of informal work: Life-job satisfaction and negative affect

Abstract

The study of the subjective well-being of informal workers in the global South is new and scattered. Little is known about informal workers' job and life satisfaction or this group's positive and negative emotional experiences. Using an extensive population survey in Cali, Colombia, we analyze the subjective well-being of over 1,100 formal and informal workers. Two questions guided the analysis: i) how is life satisfaction for formal and informal workers, and ii) how satisfied are formal and informal workers with their jobs? Informal workers score lower in all factors analyzed. The same pattern is found in job-related factors like wages, daily activities, challenges, and interpersonal relationships in the work environment. Informal workers also experience more often negative emotions like worry, depression, and anger. The subjective well-being dimension of informal employment explored in this analysis aims to inform better policy-making in the global South.