Is informal normal?: towards more and better jobs in developing countries

Shoe shine workers in Cairo, street vendors in Calcutta, badly-paid public officials driving their taxis at night in the streets of Moscow: this is informal employment - jobs or activities in the production and marketing of legal goods and services that are not regulated or protected by the state. Over half the non-agricultural jobs in developing and emerging economies come into this category. In some regions, sub-Saharan Africa and South Asia, for example, as many as 80 per cent of jobs are informal; in a few countries, it is even higher. The informal sector deprives states of revenues and workers of social protection. It also, however, frequently constitutes the most dynamic part of the economy and creates massive employment. Informal employment is ubiquitous and growing. The financial crisis that began in 2009 has made the management of informal employment even more challenging. Responding to this emerging challenge is critical, not only for the well-being of millions of workers but also for social development. This publication provides evidence for policy makers on how to deal with this issue of crucial importance for developing and developed countries alike.

Published abstract reprinted by permission of the copyright owner.

The chapters are: Employment, poverty reduction and development: what’s new? / Johannes Jutting and Juan R. de Laiglesia; Concepts, measurement and trends / Jacques Charmes; Persisting informal employment: what explains it? / David Kucera and Theodora Xenogiani; Women in informal employment: what do we know and what can we do? / David Kucera and Theodora Xenogiani; Moving out of bad jobs: more mobility, more opportunity / Jason Gagnon; Dealing with informal employment: towards a three-pronged strategy / Johannes Jutting and Juan R. de Laiglesia.

Shoe shine workers in Cairo, street vendors in Calcutta, badly-paid public officials driving their taxis at night in the streets of Moscow: this is informal employment - jobs or activities in the production and marketing of legal goods and services that are not regulated or protected by the state. Over half the non-agricultural jobs in developing and emerging economies come into this category. In some regions, sub-Saharan Africa and South Asia, for example, as many as 80 per cent of jobs are informal; in a few countries, it is even higher. The informal sector deprives states of revenues ...  [+] Show more