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Coping strategies in developed and developing societies: the workings of the informal economy

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  • Madeleine Leonard

    (Dept of Sociology and Social Policy, Queen's University of Belfast, UK)

Abstract

The purpose of this paper is to examine the persistence and significance of informal economic activity in both the developed and developing world. Drawing on empirical work carried out in Belfast, the paper suggests that many similarities exist between the informal economic activities of people on low incomes in Belfast and the poor in developing countries. The paper illustrates these connections through an examination of three aspects of the informal economy: reciprocity between households, informal self-employment and informal paid employment. By examining the variety of ways in which people at the lower end of the economic scale attempt to secure their economic livelihoods in the absence of formal employment opportunities, the paper demonstrates the global nature of the informal economy. Copyright © 2000 John Wiley & Sons, Ltd.

Suggested Citation

  • Madeleine Leonard, 2000. "Coping strategies in developed and developing societies: the workings of the informal economy," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(8), pages 1069-1085.
    • Handle: RePEc:wly:jintdv:v:12:y:2000:i:8:p:1069-1085
    DOI: 10.1002/jid.696
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    References listed on IDEAS

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    1. Helzi Noponen, 1991. "The Dynamics of Work and Survival for the Urban Poor: A Gender Analysis of Panel Data from Madras," Development and Change, International Institute of Social Studies, vol. 22(2), pages 233-260, April.
    2. Cole, William E. & Fayissa, Bichaka, 1991. "The urban subsistence labor force: Toward a policy-oriented and empirically accessible taxonomy," World Development, Elsevier, vol. 19(7), pages 779-789, July.
    3. Portes, Alejandro & Blitzer, Silvia & Curtis, John, 1986. "The urban informal sector in Uruguay: Its internal structure, characteristics, and effects," World Development, Elsevier, vol. 14(6), pages 727-741, June.
    4. Assaad, Ragui, 1993. "Formal and informal institutions in the labor market, with applications to the construction sector in Egypt," World Development, Elsevier, vol. 21(6), pages 925-939, June.
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    Cited by:

    1. Devendra Jarwal & Anju Kahal, 2022. "Informal Economy: Why First- Generation Entrepreneurs Prefer it over Formal Economy?," Shanlax International Journal of Economics, Shanlax Journals, vol. 10(3), pages 14-22, June.
    2. Graham Tipple, 2006. "Employment and work conditions in home-based enterprises in four developing countries: do they constitute ‘decent work’?," Work, Employment & Society, British Sociological Association, vol. 20(1), pages 167-179, March.
    3. Ashley Gunter & Kenneth Manuel, 2016. "A role for housing in development: Using housing as a catalyst for development in South Africa," Local Economy, London South Bank University, vol. 31(1-2), pages 312-321, February.
    4. Tilman Brück, 2003. "Coping Strategies in Post-War Rural Mozambique," Discussion Papers of DIW Berlin 384, DIW Berlin, German Institute for Economic Research.
    5. N. S. Chiteji, 2002. "Promises kept: enforcement and the role of rotating savings and credit associations in an economy," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(4), pages 393-411.

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