Informal employment is a widespread phenomenon in Romania and a key challenge for the country’s development. Policies should target two distinct groups: those who voluntarily opt out of the formal system and those with no alternative. Transforming people’s attitudes towards the state and...

This paper provides a fresh look at informal employment, a phenomenon of renewed interest to policy makers and researchers alike. It finds that informal employment is likely to stay, is sometimes a voluntary choice, can offer better working conditions than formal employment and is very...

Informal employment persists, even when the economy is growing. Understanding the phenomenon is necessary to “tame the beast” of informality. Coherent policies are needed to create decent jobs and provide social protection