Informality and the Development and Demolition of Urban Villages in the Chinese Peri-urban Area

The fate of Chinese urban villages (chengzhongcun) has recently attracted both research and policy attention. Two important unaddressed questions are: what are the sources of informality in otherwise orderly Chinese cities; and, will village redevelopment policy eliminate informality in the Chinese city? Reflecting on the long-established study of informal settlements and recent research on informality, it is argued that the informality in China has been created by the dual urban-rural land market and land management system and by an underprovision of migrant housing. The redevelopment of chengzhongcun is an attempt to eliminate this informality and to create more governable spaces through formal land development; but since it fails to tackle the root demand for unregulated living and working space, village redevelopment only leads to the replication of informality in more remote rural villages, in other urban neighbourhoods and, to some extent, in the redeveloped neighbourhoods. © 2012 Urban Studies Journal Limited

The Persistence of Informality: Evidence from Panel Data

Informality is a growing phenomenon in the developing and transition country labor market context. In particular, it is noticeable that working in an informal employment relationship is often not temporary. The degree of persistence of informality in the labor market might be due to different sources: structural state dependence due to past informality experiences and spurious state dependence due to time-invariant unobserved individual effects, which can alter the propensity of being in the informal sector independently from actual informality experiences. The purpose of our paper is to study the dynamics of informality using a genuine panel data set in the Ukrainian labor market. By estimating a dynamic panel data probit model with endogenous initial conditions, we find a highly significant degree of persistence due to previous informality experiences. This result implies that policies attempting to reduce current levels of informality may have a long-lasting effect on the labor market.unobserved heterogeneity, state dependence, transition countries, informality

On handling urban informality in southern Africa

In this article I reconsider the handling of urban informality by urban planning and management systems in southern Africa. I argue that authorities have a fetish about formality and that this is fuelled by an obsession with urban modernity. I stress that the desired city, largely inspired by Western notions of modernity, has not been and cannot be realized. Using illustrative cases of top–down interventions, I highlight and interrogate three strategies that authorities have deployed to handle informality in an effort to create or defend the modern city. I suggest that the fetish is built upon a desire for an urban modernity based on a concept of formal order that the authorities believe cannot coexist with the “disorder” and spatial “unruliness” of informality. I question the authorities' conviction that informality is an abomination that needs to be “converted”, dislocated or annihilated. I conclude that the very configuration of urban governance and socio-economic systems in the region, like the rest of sub-Saharan Africa, renders informality inevitable and its eradication impossible

Post-Soviet informality: towards theory-building

Purpose – The purpose of this paper is to suggest that informal practices and institutions of post-Soviet countries differ from informality in other post-socialist regions and, therefore, proposes categorizing it as “post-Soviet informality” – a composite definition that extends beyond the concept of “informal economy” and encompasses, along with economic activities, social and political spheres. Design/methodology/approach – The arguments of the paper are based on a comprehensive analysis of secondary sources. Findings – This paper shows that, owing to the effects of antecedent regime’s legacies and the problems of post-communist transition, for the proper analysis of informality in post-Soviet countries it needs to be based on an own concept. Originality/value – This study, in contrast to the existing literature on informality in post-communist spaces, specifically focuses on the informal sphere of post-Soviet countries, suggesting that the informal institutions and practices thriving across the vast post-Soviet space not only differ from the informal spheres elsewhere in the world, but also from informality in other post-communist regions

Informal Jobs and Trade Liberalisation in Argentina

Rapid trade liberalisation can exert profound effects on labour markets. Domestic firms, to sustain competitiveness for survival, could react through cutting labour benefits to achieve cost reductions. Alternatively, trade liberalisation may alter the industry composition of firms changing the aggregate formality rates. This paper studies the relationship between trade liberalisation and informality in Argentina. Using manufacturing industry-level data for 1992-2003, the results confirm the hypothesis that trade increases informality in industries that experience sudden foreign competition. This explains about a third of the increase in informality. Sectors with higher investment ratios are able to neutralize and reverse this effect

Urban informality and confinement: toward a relational framework

In the 21st century, a growing number of people live ‘informal’ lives within fissures between legality and informality. Concomitantly, power relations are increasingly expressed through devices of confinement. While urban informality and confinement are on the rise often occurring simultaneously, scholars have so far studied them separately. By contrast, this article proposes a new framework for analysing urban informality and confinement relationally. It generates new insights into the role of informality in the (re)production of confinement and, vice versa, the role of confinement in shaping informal practices. While these insights are valuable for urban studies in general, the article charts new lines of research on urban marginality. It also discusses how the six articles included in this special issue signal the heuristic potential of this relational framework by empirically examining distinct urban configurations of ‘confined informalities’ and ‘informal confinements’ across the Global North and the Global South

Informality in Latin America and the Caribbean

This paper studies the causes and consequences of informality and applies the analysis to countries in Latin America and the Caribbean. It starts with a discussion on the definition and measures of informality, as well as on the reasons why widespread informality should be of great concern. The paper analyzes informality's main determinants, arguing that informality is not single-caused but results from the combination of poor public services, a burdensome regulatory regime, and weak monitoring and enforcement capacity by the state. This combination is especially explosive when the country suffers from low educational achievement and features demographic pressures and primary production structures. Using cross-country regression analysis, the paper evaluates the empirical relevance of each determinant of informality. It then applies the estimated relationships to most countries in Latin America and the Caribbean in order to assess the country-specific relevance of each proposed mechanism.Labor Markets,Labor Policies,Population Policies,Economic Theory&Research,Debt Markets

Labor Informality in Latin America and the Caribbean: Patterns and Trends from Household Survey Microdata

This paper documents the main patterns and trends of alternative definitions of labor informality in Latin America and the Caribbean, by exploiting a large database of more than 100 household surveys covering the period 1989-2005. The evidence suggests that there are no signs of a consistent pattern of reduction in labor informality in the region. Regardless of the definition used, labor informality remains a pervasive characteristic of labor markets in LAC. In several countries the increase in labor informality seems to have been associated more to a sizeable increase in the propensity to set informal arrangements within groups, than to changes in the national employment structure toward more informal sectors.Informality, employment,Latinamerican, Caribean,Labor Market

The effects of the Saakashvili era reforms on informal practices in the Republic of Georgia

Since the 2003 Rose Revolution, the Georgian government implemented a number of major institutional reforms which have succeeded in modernising Georgia’s state institutions, reducing corruption and ‘formalising’ the public sector. While the effects of Saakashvili’s reforms on state and institution-building, corruption and the rule of law have been examined by a large and growing body of academic literature, there has been little discussion about the impact of institutional changes on the previously widespread culture of informality in Georgia. This article explores the effects of Georgian institution-building from such aspects of informality as the use of informal networks and connections in exchanges of favours, gift-giving and other types of informal activities. The findings of this study, based on the analysis of recent surveys and in-depth interviews, conclude that the reforms succeeded in undermining the overall importance of informal practices in dealings with state bureaucracy, education system, healthcare, law enforcement, judiciary and some other areas previously dominated by informality. However, the reliance on informality did not disappear, and informal networks are still employed as coping mechanisms and as social safety nets