Social Security Enrollment as an Indicator of State Fragility and legitimacy: A Field Experiment in Maghreb Countries

State legitimacy and effectiveness could be seen by the way to deliver welfare to citizens to mitigate social grievances, that could eventually lead to conflicts (Kivimäki, 2021). Social security systems in Maghreb countries are quite similar in their architecture and aims to provide social insurance to all the workers in the labor market. However, they suffer from the same main problem: the low rate of enrollment of workers. Many workers (employees and self-employed) work informally without any social security coverage. The issue of whether informal jobs are chosen voluntarily by workers or as a strategy of last resort is controversial. Many authors recognize that the informal sector is heterogeneous and it is made up of workers who voluntary choose it and others who are pushed inside because of entry barriers to the formal sector (Günther & Launov, 2012). Using the SAHWA survey and discrete choice models, this article confirms the heterogeneity of the informal labor market in three Maghreb countries: Algeria, Morocco, and Tunisia. Furthermore, this article highlights the profiles of workers who voluntarily choose informality, which is missing from previous studies. Finally, this article proposes policy recommendations in order to extend social security to informal workers and to include them in the formal labour market.