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Modernizing the informal sector

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Author Info
Victor E. Tokman
Abstract

The multiplicity of policies proposed to support the informal sector reflects the lack of a common definition. Although they may produce positive effects, these are limited and fail to constitute a comprehensive strategic approach. The different interpretations in the absence of a common definition as well as the strategies emerging from them are reviewed. The identification of informality with illegality and labour precariousness, although conceptually related, is often misleading. Lastly, it explores a strategic option to regulate the informal sector, tracing the different approaches to formalizing informal activities, to facilitate their full integration into the modernization process.

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Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 42.

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Length: 15 pages
Date of creation: Jun 2007
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Handle: RePEc:une:wpaper:42

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Related research
Keywords: informal sector; regulation and informality;

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Find related papers by JEL classification:
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
D39 - Microeconomics - - Distribution - - - Other

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  1. de Mel, Suresh & McKenzie, David & Woodruff, Christopher, 2008. "Who Are the Microenterprise Owners? Evidence from Sri Lanka on Tokman v. de Soto," IZA Discussion Papers 3511, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Norbert Fiess & Marco Fugazza, 2008. "Trade Liberalisation and Informality: New stylized facts," Working Papers 2008_34, Department of Economics, University of Glasgow. [Downloadable!]
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This page was last updated on 2009-11-23.


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