Compliance with labour regulations in West African countries: A multi-dimensional and dynamic analysis

Diallo, Thierno Malick; Ronconi, Lucas Working Paper Compliance with labour regulations in West African countries: A multi-dimensional and dynamic analysis ILO Working Paper, No. 152 Provided in Cooperation with: International Labour Organization (ILO), Geneva Suggested Citation: Diallo, Thierno Malick; Ronconi, Lucas (2025) : Compliance with labour regulations in West African countries: A multi-dimensional and dynamic analysis, ILO Working Paper, No. 152, ISBN 978-92-2-042770-5, International Labour Organization (ILO), Geneva, https://doi.org/10.54394/EBGO7731 This Version is available at: https://hdl.handle.net/10419/333542 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ XCompliance with Labour Regulations in West African Countries A Multi-Dimensional and Dynamic Analysis Authors / Thierno Malick Diallo, Lucas Ronconi October / 2025 ILO Working Paper 152 © International Labour Organization 2025 Attribution 4.0 International (CC BY 4.0) This work is licensed under the Creative Commons Attribution 4.0 International. See: https:// creativecommons.org/licenses/by/4.0/. The user is allowed to reuse, share (copy and redistribute), adapt (remix, transform and build upon the original work) as detailed in the licence. The user must clearly credit the ILO as the source of the material and indicate if changes were made to the original content. 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Compliance with Labour Regulations in West African Countries: A Multi-Dimensional and Dynamic Analysis, ILO Working Paper 152 (Geneva, ILO). https://doi. org/10.54394/EBGO7731 01 ILO Working Paper 152 Abstract This paper provides measures of compliance with labour regulations that vary across space, time, and type of regulation, allowing for a rich analysis of worker vulnerability. We compute a multidimensional index of labour violations that covers minimum wages, leave benefits and social security in eight West African countries (Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, Togo), and measure the persistence of labour violations experienced by employees over time (2019 to 2022). Overall, we find that 88% of employees in the region experience multiple violations of their labour rights. When restricting to longitudinal data, we observe that the multidimensional labour violations index is persistent over time, with only 21.5% of employees changing status over the three-year period. These results highlight the need to foster both workers’ wellbeing and the rule of law in West Africa. About the authors Thierno Malick Diallo is Lecturer at Gaston Berger University, Senegal; and has been involved in research collaborations with the Partnership for Economic Policy, Kenya (PEP) and the African Economic Research Consortium (AERC). His research centres around labour economics, gender, poverty, and rural economics. Lucas Ronconi is Professor of Economics at the University of Buenos Aires, Argentina. He is also a research fellow at the Argentine National Research Council, CONICET, a non-resident research fellow at the Institute for the Study of Labor (IZA), Germany, and at PEP, Kenya. His main research interest is labour market institutions in developing countries, with a focus on enforcement. 02 ILO Working Paper 152 Abstract 01 About the authors 01 XIntroduction 05 X1 Methodology and Data 07 Multidimensional Labour Violation Index (MVI) 07 Household Survey 08 Legal Analysis 11 Benin 11 Burkina Faso 12 Côte d’Ivoire 12 Guinea-Bissau 12 Mali 13 Niger 13 Senegal 13 Togo 14 X2 Measures of Compliance 15 Descriptive statistics 15 Econometric analysis 19 X3 Persistence 22 XConclusion 24 Appendix - EHCVM 25 References 26 Acknowledgements 28 Table of contents 03 ILO Working Paper 152 List of Figures Figure 1 – Multiple Violations Index (MVI) weighting 07 Figure 2 – Multidimensional Labour Violations Index, whole sample 17 Figure 3 – Multidimensional Labour Violations Index, by country-year 18 Figure 4 – Persistence of Multiple Labour Violations Index (MVI) over time 23 04 ILO Working Paper 152 List of Tables Table 1. Labour force descriptive statistics, WAEMU countries (2019 & 2022) 08 Table 2. Characteristics of Employees, WAEMU countries (2019 & 2022) 10 Table 3. Prevalence of labour law violations in West African countries (%) 16 Table 4 – Estimates of the determinants of Multidimensional Labour Violations Index 21 Table 5 – Persistence of MVI by sex 23 05 ILO Working Paper 152 XIntroduction Decent working conditions for all workers is a central objective of modern societies. To achieve this objective, governments implement labour regulations that provide protections to workers. Much of the academic and policy discussions have centred on how much labour protection is granted by the law, also called the level of labour protection. Some of the key contributions supporting the view that labour protection increases welfare are Galli and Kucera (2004), Deakin and Sarkar (2008), Deakin et al. (2014), and Adams et al. (2019); while others argue that the effects are mostly negative (Botero et al., 2004; Djankov and Ramalho, 2009; Heckman and Pages, 2004). However, how the law is observed in practice – the degree of compliance – has paradoxically received less attention. This is particularly problematic in low-and-middle-income countries (LMIC), where there is usually a large gap between statutory requirements and their effective implementation (Diallo and Ronconi, 2024). Noncompliance with labour protections undermines the credibility of governments and respect for the law. More importantly, it hurts the well-being of workers and their families. Noncompliance with legally mandated labour benefits is the focus of the paper. We use the terms ‘violation’ as synonymous with noncompliance. We compute a multidimensional index of labour violations that covers minimum wages, leave benefits and social security in eight West African countries (Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, Togo); and measures the persistence of violations over time. That is, we cover variation in compliance across space, time, and type of regulation. This allows for a much richer analysis of worker vulnerability. Because informality is a dominant feature of the labour market in these countries, the initial literature was not concerned with labour violations, but rather with the low productivity of the informal sector, which was understood as a manifestation of poverty and underdevelopment. For this reason, early definitions of informality (or rather, the informal sector) included subsistence self-employees (own-account workers) as well as employees working in small firms, regardless of access to labour benefits (Hart 1973; Tokman 1978). More recently, research on informality has begun estimating the extent of violation of workers’ rights, measured either as the share of employees without contributions to legally mandated social security, or as the share of employees with earnings below the minimum wage (Williams and Schneider (2016), Gindling et al. (2015), Rani et al. (2013), and Ronconi (2010)). Few of these studies, however, have covered African countries due to data restrictions; but this is changing thanks to the work of Bhorat et al. (2015, 2017) who cover Kenya, Namibia, Mali, South Africa, Tanzania, Uganda, and Zambia; and Badaoui and Walsh (2022) who cover Burkina Faso, Côte d’Ivoire, Mali, and Niger. See also the estimates in ILO (2020) for the whole continent. Having precise estimates of compliance is a clear improvement in our understanding of informality. But a common characteristic of this literature is the focus on only one dimension at a time (typically minimum wages or social security). This is limited from a policy perspective since additional statutory protections, such as leave benefits, hours of work, safe and healthy working conditions, and protection against unfair dismissal, are of concern to workers. Once we take this broader perspective several questions emerge. Do labour violations co-occur? Are the same workers who suffer wage theft also excluded from social security and paid leave; that is, are workers subject to multiple violations of their rights? To answer these questions, it is necessary to analyse many dimensions and their distribution across workers. 12 ILO Working Paper 152 Burkina Faso ●From 2012 to 2023 MW was 34,664 CFA West African Franc per month. During that time MW was the same for farm and non-farm workers. Since 2023, MW is 45,000 CFA per month (or 260 CFA per hour) for non-farm workers, and 240 CFA per hour for farm workers. Apprentices are excluded from the minimum wage provisions. The standard working day is 8 hours, 40 per week. ●Annual Paid Leave: Yes. Employees are entitled to paid leave at the rate of two and a half calendar days per month of actual service, unless more favourable provisions are made in collective agreements or in the individual contract (art. 156). ● Maternity/Paternity Paid Leave: Women are entitled to fourteen weeks of maternity leave. The provisions relating to maternity leave in the labour code cover all women except civil servants, magistrates, military personnel, and local authority employees (who have better benefits). There is no specific provision for paternity leave. ●Paid Sick Leave: The labour code provides for paid sick leave for all employees (duration and amount of payment depends on the length of service). ●Contributions to Social Security are compulsory for all employees. Côte d’Ivoire ●MW from 2014 to 2023 was (for non-agricultural sectors) 60,000 CFA West African Francs per month. In the agricultural sector it is 36,000 CFA per month and has not been revised since 1994. The standard workweek is established at 40 hours. ●Annual Paid Leave: Employees are entitled to paid leave at the rate of 2.2 working days per month of actual service. ● Maternity/Paternity Paid Leave: Female employees are entitled to paid maternity leave of fourteen consecutive weeks, including six weeks before the expected date of delivery and eight weeks after the date of delivery. There is no paternity leave. ● Paid Sick Leave: Employees must be paid compensation equal to the amount of remuneration during the absence, within the normal limit of the notice period. If the illness requires longterm treatment, the employer must provide pay for a period of twelve months. EPLex notes no legal exclusion in Cote d’Ivoire in 2019 based on firm size and sector of activity. ●Contributions to Social Security are compulsory for all employees. Guinea-Bissau ●MW was 19,200 CFA in 2018 and increased to 59,000 CFA in 2022 (Africanews). The minimum wage should be supplemented with a bag of rice per month. The standard working week is 40 hours. For workers under 16 years, the MW is 60%; for workers 16 and 17 years old, it is 80%. ●Annual Paid Leave: It applies to all employees. If a fixed-term contract is below one year, then 2 days of paid leave for each month of work are required. ●Maternity/Paternity Paid Leave: Women are entitled to 60 days of paid maternity leave. There is no statutory paternity leave. ●Paid Sick Leave: Employees are entitled to paid sick leave (duration and amount of payment depends on the length of service). 13 ILO Working Paper 152 ●Contributions to Social Security: Employees are entitled to this benefit under Law 2/1986, which does not apply to public employees who have a specific regime with the same, or better benefits. Mali ●The current minimum wage in Mali is CFA 40,000 per month since January 2016. The standard working week is 40 hours. ●Annual paid leave: The labour code provides annual leave to an employee after 12 months of service. Source: §148-162 of the Labour Code, 1992 (Law No. 92–020 of the 23 September 1992); §86 (11 & 23) & 133 (6) of the Decree n° 1655/MEFPT-SG regarding special provisions in the application of the labour code. ● Maternity/Paternity Paid Leave: Female employees are entitled to 14 weeks of maternity leave, upon properly documented request, after nine months of continued service with an employer. Male employees are entitled to 3 days of fully paid paternity leave on the birth of a child. ● Paid Sick Leave: An employee is entitled to sick leave upon presentation of medical certification (stressing the necessity of leave) by a doctor approved by the employer. During sick leave, 100% of the employee’s earnings is paid during the first year of employment for a period of eight days to three months depending on the collective agreements or the type of employment. ●Contributions to Social Security are compulsory for all employees. Niger ● In 2024, the statutory minimum wage was raised to West African CFA francs 42,000 per month. Back in 2018 and 2022, when the surveys were carried out, the amount was CFA 30,047. Normal working hours vary by industry but generally start at 42 hours per week. ●The labour code provides for annual leave to all employees on completion of one year of service. An employee is entitled to 30 calendar days of paid annual leave at the rate of 2.5 calendar days per month. Schedule of annual leave is determined by mutual agreement between employee and employer. ● Maternity/Paternity Paid Leave: Female employees are entitled to 98 days (fourteen weeks) of fully paid maternity leave, including eight weeks of postnatal leave. There is paternity leave; immediately after delivery or miscarriage, male employees are entitled to one working day leave from work (consulted Africa Deployments Ltd). ●Paid Sick Leave: The labour code provides for paid sick leave for all employees (duration and amount of payment depends on the length of service). ●Contributions to Social Security are compulsory for all employees. Senegal ● In Senegal, the government divides employees into 2 categories: agricultural and non-agricultural. From 2018 to 2022, when the surveys for our study were carried out, the amount was CFA 302.89 per hour for the non-agricultural sector and CFA 213.39 per hour for the agricultural sector. No sector or firm size is legally excluded except for seafarers (who have higher MW). In Senegal, the standard working hours are 40 hours per week over a maximum of 6 days. 14 ILO Working Paper 152 ●Annual Leave must be provided to all employees on completion of one year of service. It is illegal to provide compensation in lieu of annual leave except in the case of termination of employment contract. ●Maternity/Paternity Paid Leave: Female employees are entitled to 14 weeks (98 days) of maternity leave including 8 weeks of post-natal maternity leave. For male employees, there is no provision in the law on paternity leave. ●Paid Sick Leave: The labour code provides for paid sick leave for all employees (duration and amount of payment depends on the length of service). ●Contributions to Social Security are compulsory for all employees. Togo ●The current minimum wage in Togo is set at West Africa CFA francs 52,500 per month, an increase that came into effect on January 1, 2023. Before 2023, the minimum wage had remained unchanged for a decade at CFA 35,000 per month. Normal working hours are 40 hours per week. ●The labour code provides for annual leave to all workers on completion of one year of service. Employees may also enjoy this right (with reduced leave) after 6 months of service, on employer’s consent. ● Maternity/Paternity Paid Leave: The labour code provides 14 weeks (98 days) of maternity leave to female employees, including 6 weeks of post-natal leave. The maternity leave is awarded with full pay. There is no provision in the law on paternity leave. ●Paid Sick Leave: The labour code provides for paid sick leave for all employees (duration and amount of payment depends on the length of service). ●Contributions to Social Security are compulsory for all employees. 15 ILO Working Paper 152 X2 Measures of Compliance Descriptive statistics In this section we present measures of compliance using the whole cross-sectional sample of employees aged 15 to 64 in the eight WAEMU countries during the two analysed years (2019 and 2022). The sample includes almost 50,000 individuals. In the next section we restrict to employees who are followed over time (i.e., longitudinal sample). Table 3 shows the level of non-compliance with each of our five measures separately, for each country and year. The measures pertain specifically to a worker’s primary employment and are legally mandated. For capturing Minimum Wage Violations, we use the prevailing monthly minimum wage set by each country, combined with the standard working hours. For the leave benefits, we use survey questions that ask respondents a simple ‘yes/no’ question for each type of leave entitlement and whether the employee has completed 12 months of service to qualify for paid annual leave. To assess Social Security contributions, we use a straightforward question asking respondents to indicate with a 'yes' or 'no' whether their employer contributes to social security. The results show that labour standards are systematically violated in all eight countries. The share of employees with legally mandated annual leave is only 25%, and access to the other mandated leaves as well as social security is even lower. Our findings for minimum wage violations are similar to previous estimates. Using household survey data from the 2010s, ILO (2020) estimates that 21% of employees earn less than the minimum wage in 11 African countries (Cameroon, Cape Verde, Côte d’Ivoire, Egypt, Gambia, Madagascar, Malawi, Namibia, Niger, Tunisia, Tanzania). 16 ILO Working Paper 152 XTable 3. Prevalence of labour law violations in West African countries (%) Paid below minimum wage No paid annual leave No sick leave No social security contribution No maternity/ paternity leave Benin 2019 27.9 67.0 79.1 83.3 80.0 2022 20.6 71.6 73.1 86.7 79.6 Burkina Faso 2019 22.4 63.7 72.2 78.9 67.2 2022 18.2 74.9 79.8 85.7 76.0 Côte d'Ivoire 2019 37.0 77.2 76.2 85.7 79.2 2022 20.9 76.8 72.6 86.3 77.6 Guinea-Bissau 2019 3.8 74.1 81.4 94.8 85.2 2022 21.4 68.7 83.5 94.6 82.7 Mali 2019 20.8 68.4 66.8 79.4 76.7 2022 11.1 77.5 79.0 89.6 83.4 Niger 2019 20.0 58.1 69.0 87.5 77.3 2022 15.2 68.8 78.7 86.9 81.4 Senegal 2019 21.8 80.1 84.3 93.0 83.2 2022 16.1 81.6 87.6 95.3 86.4 Togo 2019 33.2 67.3 73.6 84.7 74.9 2022 24.3 69.3 74.1 84.6 79.4 WAEMU total 2019 25.7 71.5 76.6 77.0 81.2 2022 22.7 74.2 79.7 80.8 83.5 Source: Own calculations using EHCVM 2018/19 and 2021/22. Minimum wage violations are usually lower than other violations of labour regulations largely because the standards are set quite low. For example, the statutory minimum wage (PPP) does not provide an income matching the poverty line of US$5.50 (PPP) per day in Guinea-Bissau, Niger and Togo (ILO, 2020). Figure 2 presents the Index of multidimensional labour violations covering all countries and years. We find a clear spike at 0.67, indicating that almost 60% of employees receive only one third of mandated labour benefits. The most usual combination is that the employee gets a salary above the legal minimum but does not receive any of the three paid leaves, nor contributions to social security. The other spike occurs at 1, indicating that 20% of employees are excluded from all the analysed standards. Applying the 0.5 threshold to categorize each employee as ‘multiply 17 ILO Working Paper 152 deprived’ or not, implies that the estimated overall Violation Rate equals 88% in the region. This analysis could be complemented with the Adjusted Headcount Ratio. XFigure 2 – Multidimensional Labour Violations Index, whole sample Figure 3 presents the Index for each country-year separately. The figures have several core similarities. In every country-year sample the main spike occurs at 0.67; and in all cases most employees are severely excluded from labour benefits. The distribution of the index is always strongly negative (or left-skewed). An interesting difference is that some countries present a third spike, although smaller, at 0, producing a W-shaped curve distribution of labour violations. This is not the case, however, in Guinea-Bissau, Niger and Senegal. 18 ILO Working Paper 152 XFigure 3 – Multidimensional Labour Violations Index, by country-year 19 ILO Working Paper 152 Econometric analysis In this section we econometrically explore how the multidimensional labour exclusion Index varies across workers’ and firms’ characteristics, sectors, occupations, and countries. The basic model we estimate is in equation 2: where Worker_Ci is a vector of worker’s i characteristics including Age, Age squared, Sex (female=1), Educational attainment, and place of residence (rural=1); Firm_C i is a vector of characteristics of the firm and occupation where worker i is employed. We first run a regression where we include the whole sample of employees (and include country fixed effects); and then compute separate models for workers in each country. All models are computed using OLS with robust standard errors. 20 ILO Working Paper 152 The results are in Table 4. All the results we find are consistent with findings for other developing countries (Kanbur et al., 2013). We find that there is a U-shaped relationship between age and the index of labour exclusions, wherein both young and old employees are more likely to suffer exclusions compared to middle-aged workers. Women are more likely to suffer exclusions compared to men, although the results are not significant in all countries. Employees with more years of schooling, working in urban areas, and in the public sector are, as expected, significantly less likely to suffer labour violations. The only result that differs compared to LMIC in other regions, is that employees working in the manufacturing sector are not less likely to suffer labour violations compared to agricultural employees (Kanbur et al., 2013). Moreover, in some countries such as Burkina Faso, Guinea-Bissau and Senegal, working in the manufacturing sector is positively and significantly correlated with suffering from labour exclusion. This is mostly because in these countries there are more large and productive firms in the agricultural sector compared to the manufacturing sector. Finally, a positive finding is that, after controlling for observables, the coefficient for the year 2022 dummy is negative and statistically significant for most countries, indicating that labour violations have declined over time, although the size of the reduction is rather modest. 21 ILO Working Paper 152 XTable 4 – Estimates of the determinants of Multidimensional Labour Violations Index (1) (2) (3) (4) (5) (6) (7) (8) (9) WAEMU Benin Burkina Faso Côte d’Ivoire Guinea-Bissau Mali Niger Senegal Togo Age -0.012*** -0.012*** -0.017*** -0.010*** -0.003** -0.016*** -0.011*** -0.012*** -0.014*** Age square 0.0001*** 0.0001*** 0.0002*** 0.0001*** 0.00001 0.0002*** 0.0001*** 0.0001*** 0.0001*** Female 0.013*** 0.017 0.052*** 0.022*** -0.012*0.023*** 0.013 0.028*** -0.003 Education Secondary -0.105*** -0.103*** -0.135*** -0.159*** -0.0266*** -0.127*** -0.140*** -0.134*** -0.0724*** Tertiary -0.153*** -0.128*** -0.128*** -0.209*** -0.0683*** -0.168*** -0.125*** -0.180*** -0.114*** Rural 0.015*** 0.014 0.018 0.011 0.024*** 0.002 0.078*** 0.011*0.059*** Occupational status Skilled workers 0.038*** 0.070** 0.008 0.054** 0.055*** 0.075*** 0.030 0.015 0.069* Unskilled workers 0.181*** 0.182*** 0.185*** 0.261*** 0.177*** 0.177*** 0.131*** 0.115*** 0.275*** Employed private sector 0.274*** 0.290*** 0.309*** 0.311*** 0.223*** 0.323*** 0.261*** 0.243*** 0.304*** Sector activity Mining -0.006 0.011 -0.024 -0.050 0.010 -0.017 -0.017 0.312*** Manufacturing 0.038*** -0.006 0.045** 0.010 0.056*** 0.032** 0.017 0.044*** 0.057* Services 0.054*** -0.026*0.054*** 0.067*** 0.035*** 0.039*** 0.039** 0.081*** 0.024 Year 2022 -0.008*** -0.060*** -0.012 -0.068*** 0.070*** 0.001 -0.023*0.002 -0.044*** _cons 0.551*** 0.617*** 0.545*** 0.436*** 0.335*** 0.501*** 0.493*** 0.571*** 0.507*** N32,334 2,531 2,526 6,787 5,500 4,393 1,675 7,478 1,594 R20.520 0.503 0.599 0.578 0.478 0.626 0.598 0.473 0.539 Notes: Each column represents a different regression. In all cases the dependent variable is the multidimensional Index of labour violations. The regression in column (1), which uses the whole sample, includes country FE. The omitted categories are: ‘Primary education or less’; ‘Senior managers’; and ‘Agriculture’. * Statistically significant at the 10%, ** at the 5%, *** at the 1%. 28 ILO Working Paper 152 Acknowledgements We thank Janine Berg, Abdoulaye Dieye, Fabiola Mieres, and Thiané Tall for their useful comments and the ILO for the support. Research Department (RESEARCH) International Labour Organization Route des Morillons 4 1211 Geneva 22 Switzerland T +41 22 799 6530 resear[email protected] www.ilo.org/research XAdvancing social justice, promoting decent work The International Labour Organization is the United Nations agency for the world of work. 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