> Promote decent and formal work, allowing to increasing social security coverage for everyone.

> Improve the ‘safety net’ for the ‘self-employed’ by making sure they have access to health benefits and retirement fund.

> Foster employers and employees awareness about social security benefits, which lead to a healthier and more capable labour market.

> Motivating employers to formalize their workers might lead to increased unemployment due to higher hiring costs and thus leaving population still unprotected and unaffiliated to health insurance.

> Gender inequality and/or marginalization risk: Increased formalization might lead employers to perceive female hiring as more expensive, thus reducing incentives to hire them and fostering inequalities.

> Broaden tax base and thus increase social spending: an increase of formal employment will include more tax payers in the system.

External risk: > Currently in Colombia there is no clear legal framework for the formalization of the gig-economy. > Administrative paper work could result costly and timely for entrepreneurs. > Lag in connection infrastructure in rural areas and the popularization of technology to encourage formalization could lead to even further inequalities in informality between urban and rural areas.

Drop off risk: > Low understanding of technologies and low skill set can hinder implementation and reduce positive impacts.

Shareholder participation risk: > There can be socio-cultural barriers when it comes to formalization because informal economies comprise strong networks of trust and independence .

This initiative intends to reduce unemployment and informality through digital solutions.

(Plan Nacional de Desarrollo): Generate services that help people acquire quality jobs, with an emphasis on groups with greater unemployment. Reduce job informality to 41.2%, contribute to connect 2 million job vacancies and reduce unemployment to 7.6% (16).

(Gig economy bill): The labour ministry coordinated a draft of a government bill (to be approved in 2020) that seeks to establish rules for workers in the ‘gig economy’ to make their contributions to social security.(17)

(Colombia se formaliza - Encadenamientos Productivos Formales): the Ministry of Industry, Commerce and Tourism has been fostering formalization through training programs for companies in the same supply chains (18).

Other incentives: Start-ups such as Collective Benefits raised £3.3 million seed round led by Stride.VC, alongside existing investors Delin Ventures, Insurtech Gateway and angels from executives at Uber.

Fiscal incentives: the government has incentives for formalization such as exception from registering fees and contributions to compensation funds for a year for companies willing to formalize (21).

Financial incentives: Credits for banks and other facilities are only available for formal companies, providing an incentive for companies to formalize.

(Decree number 1273(2018): It establishes the rules of social security and health payment for independent workers (19).

(T-722/17): The constitutional court declared that the domestic workers must receive the benefits of social security and therefore, employers must pay them according to the number of days worked (20).

(Law 1780 of 2016): seeks to promote entrepreneurships through exemptions in registration fees and compensation funds contribution (21).

Symplifica: It is a digital platform that facilitates the payment of wages and social security for employees. Banks providing credits for young enterprises as an incentive for formalization.

The national government is an important actor promoting fair work conditions and contributions to health and social security.

IDB, Fundación Corona, Prosperidad Social and SECO, led the successful structuring of a social impact bond to transform the way of addressing the challenges of employability in Colombia and achieve greater cost effectiveness of employability projects for difficult to place populations