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Prevalence of the informal economy in global perspective

In: A Modern Guide to the Informal Economy

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Abstract

This chapter documents the prevalence of the informal economy across the globe and explains the cross-national variations in its magnitude. Using International Labour Organisation (ILO) harmonised data from national labour force surveys or similar national household surveys, across 112 countries representing 90 per cent of the global workforce, it reveals that 61.2 per cent of the total global workforce are in informal employment as their main job, although this varies across global regions from 85.8 per cent in Africa to 25.1 per cent in Europe and Central Asia. To explain the higher prevalence and intensity of the informal economy in some countries than others, and drawing upon institutionalist theory, this chapter reveals the formal institutional failings that lead to greater institutional asymmetry and a higher prevalence of the informal economy.

Suggested Citation

  • ., 2023. "Prevalence of the informal economy in global perspective," Chapters, in: A Modern Guide to the Informal Economy, chapter 4, pages 66-95, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:18668_4
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