A large percentage of workers and firms operate in the informal economy, outside the line of sight of governments in emerging market and developing economies. This may hold back the recovery in these economies from the deep recessions caused by the COVID-19 pandemic--unless governments adopt a broad set of policies to address the challenges of widespread informality. This study is the first comprehensive analysis of the extent of informality and its implications for a durable economic recovery and for long-term development. It finds that pervasive informality is associated with significantly weaker economic outcomes--including lower government resources to combat recessions, lower per capita incomes, greater poverty, less financial development, and weaker investment and productivity.
This paper documents the impact of the COVID-19 pandemic and associated lockdowns on the Colombian labor market using household micro-data. About a quarter of employment was temporarily disrupted at the height of the first pandemic-induced lockdown in 2020. Women, the young, and the less educated were the most affected groups. Since then, a remarkable recovery, led by a rebound in informal employment, has taken place. By adjusting both employment levels and hours faster, the informal sector acted as an important margin of adjustment, particularly in those industries most affected by the first lockdown. The informal sector also appears to have played a role in decreasing the sensitivity of aggregate employment to more recent lockdowns in 2021, as the economy has learned to cope with pandemic restrictions, although the possibility of higher informality rates becoming embedded remains an substantial downside risk for long-term productivity.
The Global Informal Workforce is a fresh look at the informal economy around the world and its impact on the macroeconomy. The book covers interactions between the informal economy, labor and product markets, gender equality, fiscal institutions and outcomes, social protection, and financial inclusion. Informality is a widespread and persistent phenomenon that affects how fast economies can grow, develop, and provide decent economic opportunities for their populations. The COVID-19 pandemic has helped to uncover the vulnerabilities of the informal workforce.
The author develops a view of the informal sector in developing countries primarily as an unregulated micro-entrepreneurial sector and not as a disadvantaged residual of segmented labor markets. Drawing on recent work from Latin America, he offers alternative explanations for many of the characteristics of the informal sector customarily regarded as evidence of its inferiority.
This book aims to delve into the application of feminist ethnography by engaging with the lived experiences of vulnerable workers, occupied by India’s informal workforce, across its deeply stratified labour-market landscape. Set up and organized in a diverse spatial trajectory through identified case studies from across India, the book, in a post pandemic context, aims to study, critically reflect on the vulnerable state of India’s workforce, capturing the daily emergencies, livelihood of marginalized communities. Case studies in the book feature the pandemic-crisis narratives of farmers, fisherfolk, factory workers, artisans, small scale entertainment providers, sanitation, and waste workers, to name a few. By understanding the intersectional dimensions of social structures like caste, gender, and class our case studies in the book also attempt to unpack the ‘dualities’ present in the contemporary understanding of India’s labour market. Reflective discussions with field ethnographers through first-person narratives help documenting their own observations from different case studies, while focusing on interactions on how to work through power dynamics and varied positionalities across dynamic field sites marked with different spatial characteristics. The text is primarily aimed at students and peer scholars of development studies, or for those who interested in learning about the application of ethnographic methods to studying/understanding the governing dynamics of informality across India and South Asia.
This landmark volume brings together leading scholars in the field to investigate recent conceptual shifts, research findings and policy debates on the informal economy as well as future challenges and directions for research and policy. Well over half of the global workforce and the vast majority of the workforce in developing countries work in the informal economy, and in countries around the world new forms of informal employment are emerging. Yet the informal workforce is not well understood, remains undervalued and is widely stigmatised. Contributors to the volume bridge a range of disciplinary perspectives including anthropology, development economics, law, political science, social policy, sociology, statistics, urban planning and design. The Informal Economy Revisited also focuses on specific groups of informal workers, including home-based workers, street vendors and waste pickers, to provide a grounded insight into disciplinary debates. Ultimately, the book calls for a paradigm shift in how the informal economy is perceived to reflect the realities of informal work in the Global South, as well as the informal practices of the state and capital, not just labour. The Informal Economy Revisited is the culmination of 20 years of pioneering work by WIEGO (Women in Informal Employment: Globalizing and Organizing), a global network of researchers, development practitioners and organisations of informal workers in 90 countries. Researchers, practitioners, policy-makers and advocates will all find this book an invaluable guide to the significance and complexities of the informal economy, and its role in today’s globalised economy. The Open Access version of this book, available at https://www.taylorfrancis.com/books/e/9780429200724, has been made available under a Creative Commons Attribution-Non Commercial-No Derivatives 4.0 license
This book describes the political, social, and economic connections between gender and the Covid-19 pandemic. The authors offer innovative ideas for recovery that will build a more prosperous, healthy, equitable, and sustainable future for African women and girls, targets identified under Goal 5 (Gender Equality and Women’s Empowerment) of the United Nations’ Sustainable Development Goals slated to be achieved by 2030. Within this context, authors identify issues related to the protection of women and girls from poverty, hunger, and gender-based violence; improved healthcare and healthcare workforce experiences; girl-child education; financial inclusion; and entrepreneurship opportunities for women in fintech, tourism, and information, communication and technology (ICT). The book concludes with a discussion of economic empowerment for women that focuses on normalising the ‘un-normal’ outcome of the pandemic. The book will be of value to policymakers, non-profit organisations, practitioners, and scholars who understand the importance of gender equality and women empowerment in the African continent.
This is an open access title available under the terms of a CC BY-NC-SA 3.0 IGO licence. It is free to read at Oxford Scholarship Online and offered as a free PDF download from OUP and selected open access locations. A key challenge for the post-COVID global economy is whether the disproportionate impact of the crisis on informal workers, who form the majority of the world's workforce, will be acknowledged. Or whether harmful and negative stereotypes will persist. Today, despite the role of these essential frontline workers - producing, processing, selling, cooking and delivering food, providing cleaning, childcare, eldercare, healthcare, transport, waste removal, and other essential services - many observers consider the informal economy to be non-compliant (resisting registration and taxation) and associate it with low productivity (a drag on the economy) or with crime (illegal activities) and grime (blight on modern cities). Yet, most informal workers are working poor trying to earn an honest living in often hostile environments. Most suffered severe declines in work and earnings during successive waves of the COVID pandemic, and related restrictions and recessions, and have gone deeper into debt and depleted their savings and assets in order to survive. This book explores and informs answers to that key challenge. It presents findings on the impact of the COVID crisis on informal workers in Asia, Africa, and North and Latin America. The chapters of the volume analyse the impact of the COVID crisis on informal workers, interrogate whether and which economic recovery plans and schemes include informal workers, and explore what a more inclusive economic recovery and reforms might look like.
From the erosion of state legitimacy in Lebanon to the use of smartphones in Kyrgyzstan, from a Polish suburb to the music scene in Azerbaijan, this volume attempts to explain why, in a variety of world regions, a substantial number of people tend to ignore or act against state rules. We propose to look at informality beyond simplistic associations of the phenomenon with a single category such as "informal labour" or "corruption". By doing this, we propose to look for a correlation between the emergence, and persistence, of some informal practices and the quality of governance in a given area. We also suggest that a better understanding of the variety of informal practices present in a region can help conceptualising more adequate interventions and eventually improve the socio-economic conditions of its inhabitants.
While supporting the livelihoods of most of the developing world’s urban poor, the informal sector also deprives them of basic services and social protection. Rendered vulnerable to socioeconomic threats, people in the urban informal sector have suffered disproportionately during the coronavirus disease (COVID-19) pandemic and face a highly uncertain future. Informal Services in Asian Cities explores informality’s forms and constraints. It describes the pandemic’s effects on the informal sector and how leveraging informal services can enable urban resilience. Drawing on interdisciplinary research, the book illustrates the transformative potential of urban planning and governance that addresses informality. It also details measures that could boost the informal sector’s inclusive and sustainable growth potential.
