Informal employment in emerging and transition economies : reducing informality requires better enforcement, more reasonable regulation, and economic growth

Fabián Slonimczyk

In developing and transition economies as much as half the labor force works in the informal sector (or "shadow economy"). Informal firms congest infrastructure and other public services but do not contribute the taxes needed to finance them. Informal workers are unprotected against such negative shocks as ill-health, but for certain groups there can be scarce opportunities to enter the formal sector meaning informal employment is the only feasible option. Reducing informality requires better enforcement, more reasonable regulation, and economic growth

MoreLess

Year of publication:	March 2022
Authors:	Slonimczyk, Fabián
Publisher:	Bonn : Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Subject:	informality \| shadow economy \| mobility \| exclusion \| Schattenwirtschaft \| Underground economy \| Informelle Wirtschaft \| Informal economy \| Transformationsstaaten \| Transition countries \| Wirtschaftswachstum \| Economic growth \| Schwarzarbeit \| Moonlighting \| Schwellenländer \| Emerging economies \| Entwicklungsländer \| Developing countries