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Re‐thinking the Nature of the Informal Economy: Some Lessons from Ukraine

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  • COLIN C. WILLIAMS
  • JOHN ROUND

Abstract

This article provides a critical evaluation of the competing discourses that variously represent the informal economy as a residue or leftover of some pre‐capitalist era, a by‐product of a new type of emergent formal economy, an alternative mode of work organization or a complement to the formal economy. Drawing upon evidence from a study of 600 households in Ukraine that unravels the heterogeneous forms of work in the informal economy, the finding is that although each and every representation is wholly valid in relation to specific types of informal work, no one articulation fully captures the diverse nature and multiple meanings of the informal economy. Here, in consequence, it is contended that only by using all of them will a finer‐grained and more comprehensive understanding of the complex and multifarious character of the informal economy be achieved. To display how this can be achieved, a conceptual framework is then presented that couples together these contrasting representations in order to provide a more multi‐layered and nuanced depiction of the informal economy, followed by a discussion of the implications for urban and regional development and policy of recognizing the multiple and diverse types of informal work. Résumé Cet article donne une appréciation critique des différents discours selon lesquels l’économie informelle apparaît respectivement comme un résidu ou un vestige d’une ère précapitaliste, un sous‐produit issu d’un nouveau genre d’économie officielle émergente, un mode alternatif d’organisation du travail ou un complément à l’économie officielle. A partir des résultats d’une étude effectuée sur 600 foyers ukrainiens, qui décortique les formes hétérogènes du travail au sein de l’économie informelle, il est déduit que, même si chacune des représentations est tout à fait exacte pour des types donnés de travail informel, aucune explication n’appréhende entièrement la nature diverse et les sens multiples de cette économie. En conséquence, ce n’est qu’en les utilisant toutes qu’on obtiendra une compréhension plus fine et plus exhaustive du caractère complexe et varié de l’économie informelle. Pour ce faire, il est présenté un cadre conceptuel qui associe ces représentations contradictoires afin d’aboutir à un tableau plus nuancé, composé de plusieurs niveaux. Suit une étude des implications pour la politique et l’aménagement urbains et régionaux si les divers et multiples types de travail informel étaient reconnus.

Suggested Citation

  • Colin C. Williams & John Round, 2007. "Re‐thinking the Nature of the Informal Economy: Some Lessons from Ukraine," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 31(2), pages 425-441, June.
  • Handle: RePEc:bla:ijurrs:v:31:y:2007:i:2:p:425-441
    DOI: 10.1111/j.1468-2427.2007.00730.x
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    References listed on IDEAS

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    1. Chernyshev, Igor., 2006. "Socio-economic security and decent work in Ukraine : a comparative view and statistical findings," ILO Working Papers 993870323402676, International Labour Organization.
    2. repec:ilo:ilowps:387032 is not listed on IDEAS
    3. Colin C. Williams, 2006. "The Hidden Enterprise Culture," Books, Edward Elgar Publishing, number 3948.
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    Cited by:

    1. Makovicky, Nicolette & Henig, David, 2022. "Economies and favours: What's in a word?," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 23(3), pages 42-48.
    2. Colin. C. Williams, 2008. "Illegitimate wage practices in Eastern Europe: - The case of 'envelope wages'," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 13(3), pages 253-270.
    3. Gengzhi Huang & Desheng Xue & Bo Wang, 2020. "Integrating Theories on Informal Economies: An Examination of Causes of Urban Informal Economies in China," Sustainability, MDPI, vol. 12(7), pages 1-16, March.
    4. Usman Ladan & Colin C. Williams, 2019. "Evaluating Theorizations Of Informal Sector Entrepreneurship: Some Lessons From Zamfara, Nigeria," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-18, December.
    5. repec:kqi:journl:2017-1-1 is not listed on IDEAS
    6. Floridi, Andrea & Demena, Binyam Afewerk & Wagner, Natascha, 2020. "Shedding light on the shadows of informality: A meta-analysis of formalization interventions targeted at informal firms," Labour Economics, Elsevier, vol. 67(C).
    7. Gengzhi Huang & Hong-ou Zhang & Desheng Xue, 2018. "Beyond unemployment: Informal employment and heterogeneous motivations for participating in street vending in present-day China," Urban Studies, Urban Studies Journal Limited, vol. 55(12), pages 2743-2761, September.
    8. John Round & Colin C. Williams & Peter Rodgers, 2008. "Corruption in the post-Soviet workplace: the experiences of recent graduates in contemporary Ukraine," Work, Employment & Society, British Sociological Association, vol. 22(1), pages 149-166, March.
    9. Floridi, A. & Demena, B.A. & Wagner, N., 2019. "Shedding light on the shadows of informality," ISS Working Papers - General Series 642, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.

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