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employment relations and health inequalities: a conceptual and empirical overvieW<br />

injuries, but also in terms of aid for dependent family members.<br />

Similarly, regarding contributions to social insurance systems, if a<br />

contract does not involve any contributory obligations, there is far<br />

less incentive for voluntary contributions, especially when <strong>low</strong>-wage<br />

workers are expected to channel some of their current income into<br />

a system from which they may receive benefits in the future.<br />

In middle- and <strong>low</strong>-income countries there has been an<br />

increasing informalisation of labour markets, indicated by a decline<br />

in the number of employees with formal working agreements.<br />

according to the IlO, out of every 100 workers worldwide, only 6 are<br />

fully employed, and another 16 are unable to earn enough to get<br />

their families over the poverty line of US$1 per day (IlO, 2001). In<br />

latin america, despite the lack of information on indicators that<br />

define the quality of employment, it is still possible to describe some<br />

of the main characteristics of jobs. a small number of countries<br />

show a downward trend in hiring with formal or written contracts. In<br />

those countries which have information available from the beginning<br />

of the 1990s, formal hiring fell by four percentage points between<br />

1990 and 2005 (EClaC, 2007). In 2005, 12 countries in the region<br />

reported that 49 per cent of their wage workers had a formal<br />

contract with their employers, with one in four having a permanent<br />

contract (i.e., one in every eight wage workers overall) (Figure 6).<br />

Figure 6. Wage workers with formal and permanent contracts in latin america (12 countries) in 2002<br />

and 2005.<br />

60<br />

50<br />

48.7 49.3<br />

54.4 54.2<br />

50.3 51.5<br />

46.4 46.3<br />

40<br />

Percentage<br />

30<br />

20<br />

10<br />

16.5<br />

13.3<br />

16.3<br />

14.5<br />

25.5<br />

24.9<br />

6.1 6.3<br />

14.9<br />

13.5<br />

18.6<br />

13.1<br />

0<br />

2002 2005 2002 2005 2002 2005 2002 2005 2002 2005<br />

Total wage workers Wage workers in mediumand<br />

Wage workers in <strong>low</strong>-<br />

Male wage workers Female wage workers<br />

high- productivity productivity sectors<br />

sectors<br />

Total wage workers with formal contracts Wage workers with permanent contracts<br />

source: economic commission for latin america and the caribbean. (2007). social panorama of latin america 2006. santiago de<br />

chile: united nations.<br />

135

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