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Modernizing the informal sector

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  • Victor E. Tokman
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    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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    File URL: http://www.un.org/esa/desa/papers/2007/wp42_2007.pdf
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    Bibliographic Info

    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
    Date of revision:
    Handle: RePEc:une:wpaper:42

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    Related research

    Keywords: informal sector; regulation and informality;

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    Cited by:
    1. Norbert Fiess & Marco Fugazza, 2008. "Trade Liberalisation and Informality: New stylized facts," Working Papers 2008_34, Business School - Economics, University of Glasgow.
    2. Gindling, T.H. & Newhouse, David, 2014. "Self-Employment in the Developing World," World Development, Elsevier, vol. 56(C), pages 313-331.
    3. de Mel, Suresh & McKenzie, David & Woodruff, Christopher, 2008. "Who are the microenterprise owners ? Evidence from Sri Lanka on Tokman v. de Soto," Policy Research Working Paper Series 4635, The World Bank.
    4. Carlyn Dobson & Antonio Rodríguez, 2010. "Is Corruption Really Bad for Inequality? Evidence from Latin America," Development Research Working Paper Series 02/2010, Institute for Advanced Development Studies.

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