Main Informality Indicators

Quality employment that provides fair wages, social protection and safe working conditions is central to reducing poverty and inequality, securing livelihoods and supporting inclusive growth. Yet, despite recent progress in the formalisation agenda globally, evidence from the KIIbIH shows that informality remains the norm in most developing countries. 

The KIIbIH, which covers developing and developed countries, was established by the OECD Development Centre in 2017 to support the analysis and monitoring of the informal economy across countries. The data inform many actors, ranging from policy makers to researchers, analysts and international organisations. 

The last major KIIbIH update was released in June 2026. 

The KIIbIH is designed to analyse informality within a broad socio-economic context. It rests on the idea that understanding the vulnerability of informal economy workers and designing effective policy responses requires capturing not only the diversity of their individual labour situations but also the characteristics of their households. By combining individual- and household-level information, the KIIbIH's unique approach makes it possible to examine informal employment in the broader context of workers' households and to assess vulnerabilities beyond individual circumstances. 

Informality is a structural outcome shaped by the interaction between multiple factors, including labour regulations, tax systems, business conditions, labour market institutions and social protection arrangements. It is highly heterogeneous and its persistence over time means that it cannot be a secondary labour market category addressed through formalisation alone.  

To capture the diverse realities of informal workers, the KIIbIH disaggregates information on informal workers by many key characteristics – age, gender, location, education, poverty status, labour income and household welfare, as well as access to different social protection programmes. 

This evidence serves to support policies that address structural barriers to formalisation while recognising the diversity of the informal economy.