Impact Assessment of Formal Employment in Senegal

I&P and FERDI (Foundation for Studies and Research on International Development) carried out a study on the social and economic impacts of employment and explored the impacts of an employment contract in the Senegalese context. Over 200 employees were interviewed in 6 portfolio companies, covering several sectors, hierarchical levels and types of contractualization.

Download the executive summary: In English | In French

Download the complete study (in French)

Context

• 97% of companies in Senegal are informal

• Nearly 17% of Senegalese are officially considered unemployed in 2017 (a low figure compared to the actual situation, due to the large scale of the underground economy)

Main findings: what are the impacts of formalization?

→ A higher salary to sustain the entire household

• Wages are 60% higher than the national average
• Nearly 9 people on average per household

→ A greater inclusion in the labour market

• 60% of employees have signed their first employment contract

→ Essential social benefits

• 73% of employees accessing for the first to an health insurance
• A first participation to the retirement system for 78% of employees

→ Integration into the financial system

• 82% of formal employees have a bank account (versus 42% of informal employees)
• 50% of formal employees obtained a bank credit (versus 20% of informal employees)