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

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  • Marty Chen

Abstract

This paper explores the relationship of the informal economy to the formal economy and to the formal regulatory environment. It begins with a comparison of the earlier concept of the 'informal sector' with the new expanded concept of the 'informal economy' which includes microentrepreneurs, own account operators, informal wage workers, and industrial outworkers.

Suggested Citation

  • 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).
    • Handle: RePEc:unu:wpaper:rp2005-10
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2005-10.pdf
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    References listed on IDEAS

    as
    1. Peattie, Lisa, 1987. "An idea in good currency and how it grew: The informal sector," World Development, Elsevier, vol. 15(7), pages 851-860, July.
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    3. Dani Rodrik, 1998. "Has Globalization Gone Too Far?," Challenge, Taylor & Francis Journals, vol. 41(2), pages 81-94, March.
    4. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    5. Sethuraman, S. V.,, 1976. "Urban informal sector : concept, measurement and policy," ILO Working Papers 991667413402676, International Labour Organization.
    6. Rakowski, Cathy A., 1994. "Convergence and divergence in the informal sector debate: A focus on Latin America, 1984-92," World Development, Elsevier, vol. 22(4), pages 501-516, April.
    7. Maloney, William F., 2004. "Informality Revisited," World Development, Elsevier, vol. 32(7), pages 1159-1178, July.
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