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As shown in the figure the formal sector sells a low quantity of high quality milk (i.e., pasteurised) at a high price, while the informal sector sells a large quantity of low quality milk at a lower price than the formal sector (note that this is at the retail level).
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Note that the formal sector wage premium is not signed.
On the other hand, JICA's strategy implies (though it should be noted that this is not explicitly stated) bypassing the ineffective formal sector to create a local supply of safe dairy products at affordable prices that can replace the informal sector.
Note that workers with ( l > bar{l} ) prefer to work in the formal sector,21 so workers with ( l le bar{l} ) operate informally while workers with ( bar{l} < l ) operate formally.
Note that if condition (10.4 holds and HI ≥ γ, all workers would prefer to work in the formal sector.
The formal sector is the enemy.
Without further improvement, employment growth in Africa's formal sector will remain depressingly stunted.
In 2004 and 2005, around 3m new jobs will be created in the formal sector.
This also highlights a second challenge: the imperative to create formal sector jobs.
And in the formal labour market 45% of the European descendant workforce is in the formal sector (still very low), only 33% of the indigenous or African descendant workforce is in the formal sector.
The protection is limited to formal sector workers only, however.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com