IDEAS home Printed from https://ideas.repec.org/p/une/wpaper/46.html
   My bibliography  Save this paper

Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment

Author

Listed:
  • Martha Alter Chen

Abstract

This paper explores the relationship of the informal economy to the formal economy and the formal regulatory environment. It begins with a discussion of the concept of the informal economy and its size, composition, and segmentation. It then discusses the linkages between the informal economy and the formal economy and the formal regulatory environment. The conclusion suggests why and how more equitable linkages between the informal economy and the formal economy should be promoted through an appropriate inclusive policy and regulatory environment.

Suggested Citation

  • Martha Alter Chen, 2007. "Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment," Working Papers 46, United Nations, Department of Economics and Social Affairs.
    • Handle: RePEc:une:wpaper:46
    as

    Download full text from publisher

    File URL: http://www.un.org/esa/desa/papers/2007/wp46_2007.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sethuraman, S. V.,, 1976. "Urban informal sector : concept, measurement and policy," ILO Working Papers 991667413402676, International Labour Organization.
    2. Moser, Caroline O. N., 1978. "Informal sector or petty commodity production: Dualism or dependence in urban development?," World Development, Elsevier, vol. 6(9-10), pages 1041-1064.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Swaminathan, M., 1991. "Understanding the "Informal Sector": A Survey," Research Paper 95, World Institute for Development Economics Research.
    2. Martha Alter Chen, 2012. "The Informal Economy in Comparative Perspective," Chapters, in: James G. Carrier (ed.), A Handbook of Economic Anthropology, Second Edition, chapter 28, Edward Elgar Publishing.
    3. Gasmi, Farid & Kouakou, Dorgyles & Sanni, Maruf, 2022. "The effect of firm informality on sustainable and responsible innovation in developing countries: Evidence from Nigeria," TSE Working Papers 22-1368, Toulouse School of Economics (TSE).
    4. Hanan Nazier & Racha Ramadan, 2015. "Informality and Poverty: A Causality Dilemma with Application to Egypt," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 5(4), pages 1-4.
    5. Graham Tipple, 2005. "The Place of Home-based Enterprises in the Informal Sector: Evidence from Cochabamba, New Delhi, Surabaya and Pretoria," Urban Studies, Urban Studies Journal Limited, vol. 42(4), pages 611-632, April.
    6. Marty Chen, 2005. "Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment," WIDER Working Paper Series RP2005-10, World Institute for Development Economic Research (UNU-WIDER).
    7. Snehashish Bhattacharya & Surbhi Kesar, 2020. "Precarity and Development: Production and Labor Processes in the Informal Economy in India," Review of Radical Political Economics, Union for Radical Political Economics, vol. 52(3), pages 387-408, September.
    8. Rafaela Bastidas & Nicolás Acosta, 2019. "Misallocation and manufacturing TFP in Ecuador: formal, semi-formal and informal firms," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-29, December.
    9. Njoya, Loudi & Ngouhouo, Ibrahim & Asongu, Simplice & Schneider, Friedrich, 2022. "The role of economic prosperity on informality in Africa: evidence of corruption thresholds from PSTR," MPRA Paper 119059, University Library of Munich, Germany.
    10. Jain, Varinder, 2020. "Vulnerability Exposure in Informal Manufacturing Sector A Reflection on Conceptual and Analytical Issues," MPRA Paper 103158, University Library of Munich, Germany.
    11. Gökçer Özgür & Ceyhun Elgin & Adem Y. Elveren, 2021. "Is informality a barrier to sustainable development?," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 45-65, January.
    12. Paul Wellings & Michael Sutcliffe, 1984. "‘Developing’ the Urban Informal Sector in South Africa: The Reformist Paradigm and its Fallacies," Development and Change, International Institute of Social Studies, vol. 15(4), pages 517-550, October.
    13. Josip Franic, 2019. "Undeclared Economy in Croatia during the 2004–2017 Period: Quarterly Estimates Using the MIMIC Method," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 21(1), pages 5-46, June.
    14. Mathan Satchi & Jonathan Temple, 2006. "Growth and labour markets in developing countries," Bristol Economics Discussion Papers 06/581, School of Economics, University of Bristol, UK.
    15. Ricardo A. Lagos, 1995. "Formalizing the Informal Sector: Barriers and Costs," Development and Change, International Institute of Social Studies, vol. 26(1), pages 111-131, January.
    16. Amin, A. T. M. Nurul & Singh, Andréa Menefee,, 2002. "The informal sector in Asia from the decent work perspective," ILO Working Papers 993551963402676, International Labour Organization.
    17. Pius B. Simon, 1998. "Informal Responses to Crises of Urban Employment: An Investigation into the Structure and Relevance of Small-scale Informal Retailing in Kaduna, Nigeria," Regional Studies, Taylor & Francis Journals, vol. 32(6), pages 547-557, August.
    18. Mohamed Amara, 2016. "The linkages between formal and informal employment growth in Tunisia: a spatial simultaneous equations approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 203-227, January.
    19. Nitya Rao, 1996. "Empowerment through Organisation," Indian Journal of Gender Studies, Centre for Women's Development Studies, vol. 3(2), pages 171-197, September.
    20. Lay, Jann & Wiebelt, Manfred, 2001. "Towards a dual education system - a labour market perspective on poverty reduction in Bolivia," Kiel Working Papers 1073, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    Keywords

    informal sector; informal economy; informal enterprises; informal workers; formal economy; formal regulatory environment; linkages; formalization;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:une:wpaper:46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aimee Gao (email available below). General contact details of provider: https://edirc.repec.org/data/desunus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.