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Understanding household business vulnerability and the challenge of social protection

Demenet, Axel (2017), Understanding household business vulnerability and the challenge of social protection, in Laure Pasquier-Doumer, Xavier Oudin, Nguyen Thang, The Importance of Household Businesses and the Informal Sector for Inclusive Growth in Vietnam, IRD : Paris, p. 229-248

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chap.9-understanding household business.pdf (2.302Mb)
Type
Chapitre d'ouvrage
Date
2017
2017
Book title
The Importance of Household Businesses and the Informal Sector for Inclusive Growth in Vietnam
Book author
Laure Pasquier-Doumer, Xavier Oudin, Nguyen Thang
Publisher
IRD
Published in
Paris
ISBN
9786047725397
Number of pages
326
Pages
229-248
Metadata
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Author(s)
Demenet, Axel
Laboratoire d'Economie de Dauphine [LEDa]
Abstract (EN)
Operating a small-scale household business is risky. A particular feature of HBs is that they largely rely on a single worker’s labour input (or in the best case scenario, a few). In addition to what are considered common risks for medium and large businesses, HB activity may be negatively impacted by any adverse event that affects the owner of a HB, and sometimes even by those that affect other members from the same household. While a construction company is unlikely to suffer from a worker being ill, even though s/he has major responsibilities, an informal bricklayer will lose income for any day spent in bed – and s/he will probably lose customers as well. In the first section of this chapter a framework for understanding HB vulnerability is developed. Exploiting a special module of the 2014/15 HB&IS survey, it describes the type of adverse events faced by HB owners, the frequency with which they occur and the coping strategies that are used. It appears that HBs frequently experience shocks and that health problems are by far the main vulnerability factor. Dealing with the resulting expenditures often implies borrowing or selling productive assets, which can have lasting consequences on a HB.
Subjects / Keywords
Informal sector; Social Networks
JEL
O15 - Human Resources; Human Development; Income Distribution; Migration
O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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