Informal Economies

The informal economy comprises the parts of the economy that are not regulated. These parts include illicit activity like the sale of drugs, architects doing work under the table, hairdressers who operate in cash and don’t report their income, businesses employing illegal workers, and businesses operating without government required licenses. Informal economic actors are often self-employed, or are employed elsewhere and operating an informal business on the side as a means for supplemental income. Often, informal economic actors are undocumented immigrants who risk being discovered if documentation is heavy. Acting informally allows income to be generated without documentation

The global governance of informal economies : the International Labour Organisation in East Africa

This article develops a Gramscian approach to the governance of ‘informal’ economies through a historical study of International Labour Organization (ILO) programmes in East Africa. Drawing on Gramsci’s conception of the ‘subaltern’, the article highlights the ways in which the articulation of ‘informality’ in policy documents is coloured by broader struggles over the political organisation of labour. The article develops this argument through two case studies. The first examines the World Employment Programme mission to Kenya in the 1970s that popularised the concept of ‘informal’ labour. The second is a contemporary programme on apprenticeships in the informal economy that originated in Tanzania

Poverty and Informal Economies

International audienceInformal economic activity is a significant part of world production and distribution. This chapter reviews different core definitions (informal economic activities versus informal sector), different historical instances of "the" informal economy (in the Third World, under Communism and in contemporary Western cities), and different theoretical approaches (the dualist or development perspective, the legalist or neoliberal perspective, the structuralist or neomarxist perspective). We explore the different types mediation, dispute resolution and regulation that emerge out of informal economic transactions. We then focus more specifically on the informal economy in the everyday life of the poor, and argue that informal economic activities reward specific skills which are not valued on the formal labor market. We address methodological challenges to studying the informal economy in the conclusion

Introduction: Sustainable Development Goals and informal economies in Latin America

This special issue addresses the Sustainable Development Goals (SDGs) in relation with informal economies and explores how informal economies need to be conceptualized, understood and connected to the SDGs in order to enable innovative sustainable development models

Polish Households' Behavior in the Regular and Informal Economies

The paper analyzes characteristics of the informal economy in Poland in the context of transition using a specific survey carried out in the frame of the classic Labor Force Survey 1995 by the Polish National Statistical office (GUS). The participation probabilities of three types of informal activities (working, buying and hiring) are discussed. Their interdependencies are discussed the hypothesis of the network or neighborhood effects. The impact of the household's participation on informal markets on its regular consumption is estimated by imputing the informal activity probabilities to the consumption surveys and panel. Then, the specific consumption profiles of participants in the informal market can be identified. This participation does influence significantly more than half of the household's expenditure groups. Moreover, the participants of the informal economy distinguish themselves by the higher individual full prices (integrating non monetary constraints and resources).Informal economy participation, Consumer behavior, Cross-section-panel estimation

Polish Households' behavior in the Regular and Informal Economies

This paper analyzes characteristics of the informal economy in Poland in the context of transition, using a specific survey carried out in the framework of the classic Labour Force Survey, conducted by the Polish National Statistical office (GUS), in 1995. The participation probabilities of three types of informal activities (working, buying and hiring) are discussed. Their interdependencies are analyzed in the light of the hypothesis of network or neighborhood effects. The impact of a household's participation in informal markets on its regular consumption is estimated by imputing the probability of its informal activity in the consumption surveys and panels. Such participation does significantly influence more than half of household's expenditure on goods and services. Moreover, the participants of the informal economy distinguish themselves by higher individual full prices (integrating both monetary and non-monetary constraints and resources).Informal economy ; consumer behavior ; cross-section-panel estimation

Non-formal Institutions, Informal Economies, and the Politics of Inclusion

Informal economy, Non-formal institutions, Structural adjustment, Economic policy

The Impact of Cultural Values and Behaviours on Informal Economies

Objectives The thesis has two main objectives. The first one is to generalize the impact of culture on informal economies by classifying the various influences into broader groups. The second is to look for patterns in countries with high levels of informality. Summary The impact of cultural beliefs and behaviors has been an angle mostly neglected by the current research. A thematic network analysis was conducted, creating a tentative framework that identifies four organizing themes of how culture influences informal economies. In addition, 20 countries with high levels of informality were compared using Hofstede’s cultural dimensions framework, specifically the power distance, individualism vs collectivism, and uncertainty avoidance dimensions. Conclusions Influence on demand, perception of the government, labor markets, and status consumption are identified as ways in which culture can influence informal economies. The framework is tentative and is open to adjustments based on future research. The cultural dimensions analysis suggests a positive relationship between the combination of a high-power distance score and a low individualism vs collectivism score and the size of the informal economy. This applies to all part of the world expect Europe. The correlation between uncertainty avoidance and informal economies is unclear and determined to require further research