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Beyond the formal/informal economy binary hierarchy

Author

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  • Colin C. Williams
  • John Round
  • Peter Rodgers

Abstract

Purpose - This paper aims to evaluate critically the conventional binary hierarchical representation of the formal/informal economy dualism which reads informal employment as a residual and marginal sphere that has largely negative consequences for economic development and needs to be deterred. Design/methodology/approach - To contest this depiction, the results of 600 household interviews conducted in Ukraine during 2005/2006 on the extent and nature of their informal employment are reported. Findings - Informal employment is revealed to be an extensively used form of work and, through a richer and more textured understanding of the multiple roles that different forms of informal employment play, a form of work that positively contributes to economic and social development, acting both as an important seedbed for enterprise creation and development and as a primary vehicle through which community self‐help is delivered in contemporary Ukraine. Research limitations/implications - This survey reveals that depicting informal employment as a hindrance to development and deterring engagement in this sphere results in state authorities destroying the entrepreneurial endeavour and active citizenship that other public policies are seeking to nurture. The paper concludes by addressing how this public policy paradox might start to be resolved. Originality/value - This paper is one of the first to document the role of informal employment in nurturing enterprise creation and development as well as community exchange.

Suggested Citation

  • Colin C. Williams & John Round & Peter Rodgers, 2007. "Beyond the formal/informal economy binary hierarchy," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 34(6), pages 402-414, May.
    • Handle: RePEc:eme:ijsepp:v:34:y:2007:i:6:p:402-414
    DOI: 10.1108/03068290710751812
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    Citations

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    Cited by:

    1. Zoran Slavnic, 2011. "Struggle for Survival in the Deregulated Market: Re-commodification and Informalisation of the Taxi Sector in Stockholm," Forum for Social Economics, Taylor & Francis Journals, vol. 40(2), pages 233-251, January.
    2. Colin C. Williams & Abbi Kedir & Meryem Fethi & Sara Nadin, 2012. "Evaluating 'Varieties of Capitalism' by the Extent and Nature of the Informal Economy: The Case of South-Eastern Europe," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 10(2), pages 113-130.
    3. Serge Francis Simen, 2018. "Dynamique de l'entrepreneuriat informel au Sénégal : caractéristiques et particularités," Post-Print halshs-01782037, HAL.
    4. Walid Merouani & Rana Jawad, 2022. "Political Attitudes and Participation among Young Arab Workers: A Comparison of Formal and Informal Workers in Five Arab Countries," Social Sciences, MDPI, vol. 11(11), pages 1-24, October.
    5. Colin C. Williams, 2010. "Beyond the market/non‐market divide: a total social organisation of labour perspective," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(6), pages 402-414, May.
    6. Zoran Slavnic, 2011. "Struggle for Survival in the Deregulated Market: Re-commodification and Informalisation of the Taxi Sector in Stockholm," Forum for Social Economics, Springer;The Association for Social Economics, vol. 40(2), pages 233-251, July.
    7. Soldatos, Gerasimos T., 2016. "A Short “Second Best” Narrative of the Ukrainian Economy/ Una Breve “Segunda Mejor Opción” de Narrativa de la Economía Ucraniana," MPRA Paper 81714, University Library of Munich, Germany, revised Dec 2016.
    8. Colin C. Williams & Jan Windebank, 2011. "Regional Variations in the Nature of the Shadow Economy: Evidence from a Survey of 27 European Union Member States," Chapters, in: Friedrich Schneider (ed.), Handbook on the Shadow Economy, chapter 5, Edward Elgar Publishing.

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