Unpaid family workers and poverty reduction: a macro perspective

While the significance of unpaid family workers (unpaid workers) to the social fabric of family-based economic activities is well acknowledged, their role in mitigating poverty at the macro level has received less attention. Achieving sustainable and inclusive growth that aligns with Sustainable Development Goals (SDGs) requires understanding their role in poverty reduction. The study examines the role of unpaid workers on poverty dynamics using macro-level data from 64developing countries covering the period 1990–2021. While poverty incidence, depth and severity are measured using revised thresholds of $2.15 and $3.65 per day, unpaid workers are disaggregated by gender. Findings based on dynamic panel data analysis suggest that while unpaid workers reduce poverty, such effects are modest, nuanced and gender-specific. These findings gain significance in light of developing countries’ efforts to achieve SDG 1 (poverty reduction) and SDG 8 (decent work and economic growth) and highlight the need for targeted policy interventions to value and support these workers