Rethinking employment formalization: Motivations and constraints through the lens of informal workers in Cambodia

Title (eng)
Rethinking employment formalization: Motivations and constraints through the lens of informal workers in Cambodia
Author
David Vuth
Advisor
Anna Matysek
Advisor
Frank Walsh
Description (eng)
In Cambodia, informal employment accounts for 88.3% of the total workforce. This phenomenon poses a critical issue for inclusive and sustainable development across the country. This thesis investigates the dynamics of employment formalization through subjective experiences of informal workers, examining policy narratives that prioritize economic incentives while neglecting the socio-cultural aspects that shape workers’ choices and realities. This study employs mixed-method approaches, combining quantitative surveys with 87 informal workers and semi-structured interviews with six participants across three sectors: construction, tuk-tuk driving and street vending. The findings reveal that formalization decisions in Cambodia are significantly shaped by social aspects, with 56.8% of respondents prioritizing social recognition, personal status and dignity over economic benefits. The research identifies remarkable sectoral variations: construction workers tend toward social protection benefits, street vendors prioritize legitimacy and cultural acceptance. At the same time, tuk-tuk drivers look more into professional recognition and career advancement. Relatively, the study illustrates a 67.8% trust deficit in government institutions that highlight systemic barriers beyond regulatory complexity. This research contributes theoretically by challenging the idea that formalization can be influenced solely by economic models; nevertheless, it demonstrates how informal workers’ decisions are shaped by complex social, cultural and personal factors. Policy implications suggest that effective formalization strategies must integrate social recognition frameworks, streamline bureaucratic procedures, and maximize institutional trust.
Keywords (eng)
Informal employmentinformal economymotivationsconstraintsdeveloping economiesformalization
Type (eng)
Master theses
Language
[eng]
Persistent identifier
https://door.donau-uni.ac.at/o:5733
Date created
2025
License
All rights reserved