IDEAS home Printed from https://ideas.repec.org/a/bla/intlab/v154y2015i3p373-392.html
   My bibliography  Save this article

Pressures towards and against formalization: Regulation and informal employment in Mozambique

Author

Listed:
  • Pauline DIBBEN
  • Geoffrey WOOD
  • Colin C. WILLIAMS

Abstract

The informal economy accounts for the bulk of employment in many emerging economies. Regulation theory suggests that all economic activity is characterized by a complex combination of formal and informal regulation. Looking at the case of Mozambique, this article explores the pressures towards and against formalization, and the forms regulation can take, drawing on qualitative research based on in-depth elite interviews and observation. The findings highlight how the State's role in promoting formalization of the informal economy is ambivalent; its approach incorporates both “progressive” elements, which focus on the modernization of regulations and institutions, and “conservative” elements, which inhibit this process of change.

Suggested Citation

  • Pauline DIBBEN & Geoffrey WOOD & Colin C. WILLIAMS, 2015. "Pressures towards and against formalization: Regulation and informal employment in Mozambique," International Labour Review, International Labour Organization, vol. 154(3), pages 373-392, September.
    • Handle: RePEc:bla:intlab:v:154:y:2015:i:3:p:373-392
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1564-913X.2014.00014.x
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Colin C. WILLIAMS & Mark A. LANSKY, 2013. "Informal employment in developed and developing economies: Perspectives and policy responses," International Labour Review, International Labour Organization, vol. 152(3-4), pages 355-380, December.
    2. Ravi KANBUR & Lucas RONCONI & Leigh WEDENOJA, 2013. "Labour law violations in Chile," International Labour Review, International Labour Organization, vol. 152(3-4), pages 431-444, December.
    3. Arndt, Channing & Benfica, Rui & Thurlow, James, 2011. "Gender Implications of Biofuels Expansion in Africa: The Case of Mozambique," World Development, Elsevier, vol. 39(9), pages 1649-1662, September.
    4. Carlos Oya & John Sender, 2009. "Divorced, Separated, and Widowed Women Workers in Rural Mozambique," Feminist Economics, Taylor & Francis Journals, vol. 15(2), pages 1-31.
    5. 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.
    6. Marcouiller, Douglas & Young, Leslie, 1995. "The Black Hole of Graft: The Predatory State and the Informal Economy," American Economic Review, American Economic Association, vol. 85(3), pages 630-646, June.
    7. Martha Alter Chen, 2007. "Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment," Working Papers 46, United Nations, Department of Economics and Social Affairs.
    8. Christine BISCHOFF & Geoffrey WOOD, 2013. "Selective informality: The self-limiting growth choices of small businesses in South Africa," International Labour Review, International Labour Organization, vol. 152(3-4), pages 493-505, December.
    9. Feige, Edgar L. & Urban, Ivica, 2008. "Measuring underground (unobserved, non-observed, unrecorded) economies in transition countries: Can we trust GDP?," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 287-306, June.
    10. Loayza, Norman V. & Rigolini, Jamele, 2011. "Informal Employment: Safety Net or Growth Engine?," World Development, Elsevier, vol. 39(9), pages 1503-1515, September.
    11. Wood, Geoffrey & Dibben, Pauline & Stride, Chris & Webster, Edward, 2011. "HRM in Mozambique: Homogenization, path dependence or segmented business system?," Journal of World Business, Elsevier, vol. 46(1), pages 31-41, January.
    12. Harriss-White, Barbara, 2010. "Work and Wellbeing in Informal Economies: The Regulative Roles of Institutions of Identity and the State," World Development, Elsevier, vol. 38(2), pages 170-183, February.
    13. Ilda Lindell, 2008. "The Multiple Sites of Urban Governance: Insights from an African City," Urban Studies, Urban Studies Journal Limited, vol. 45(9), pages 1879-1901, August.
    14. Pauline Dibben, 2010. "Trade union change, development and renewal in emerging economies: the case of Mozambique," Work, Employment & Society, British Sociological Association, vol. 24(3), pages 468-486, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rogerson Christian M., 2018. "Informality and migrant entrepreneurs in Cape Town’s inner city," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 40(40), pages 157-171, June.
    2. Mateo-Babiano, Iderlina & Recio, Redento B. & Ashmore, David P. & Guillen, Marie Danielle & Gaspay, Sandy Mae, 2020. "Formalising the jeepney industry in the Philippines – A confirmatory thematic analysis of key transitionary issues," Research in Transportation Economics, Elsevier, vol. 83(C).
    3. Daniil A. Sitkevich, 2022. "Shadow economy: To legalise or to tolerate?," Journal of New Economy, Ural State University of Economics, vol. 23(3), pages 6-22, October.
    4. Pallavi Roy & Mushtaq H. Khan, 2021. "Digitizing Taxation and Premature Formalization in Developing Countries," Development and Change, International Institute of Social Studies, vol. 52(4), pages 855-877, July.
    5. Jianshi Wang & Yu Cheng & Chengxin Wang, 2022. "Environmental Regulation, Scientific and Technological Innovation, and Industrial Structure Upgrading in the Yellow River Basin, China," IJERPH, MDPI, vol. 19(24), pages 1-17, December.
    6. Hermanus Stephanus Geyer Jr, 2023. "Precarious and non-precarious work in the informal sector: Evidence from South Africa," Urban Studies, Urban Studies Journal Limited, vol. 60(10), pages 1915-1931, August.
    7. Estevão, João & Lopes, José Dias & Penela, Daniela, 2022. "The importance of the business environment for the informal economy: Evidence from the Doing Business ranking," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    8. Colin C. Williams & Abbi M. Kedir, 2019. "Explaining cross-country variations in the prevalence of informal sector competitors: lessons from the World Bank Enterprise Survey," International Entrepreneurship and Management Journal, Springer, vol. 15(3), pages 677-696, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Friedrich Schneider & Mangirdas Morkunas & Erika Quendler, 2021. "Measuring the Immeasurable: The Evolution of the Size of Informal Economy in the Agricultural Sector in the EU-15 up to 2019," CESifo Working Paper Series 8937, CESifo.
    2. Colombo, Emilio & Onnis, Luisanna & Tirelli, Patrizio, 2016. "Shadow economies at times of banking crises: Empirics and theory," Journal of Banking & Finance, Elsevier, vol. 62(C), pages 180-190.
    3. Stephen S. Golub & Janet Ceglowski & Ahmadou Aly Mbaye & Varun Prasad, 2018. "Can Africa compete with China in manufacturing? The role of relative unit labour costs," The World Economy, Wiley Blackwell, vol. 41(6), pages 1508-1528, June.
    4. Colin C. Williams & Jan Windebank, 2011. "Regional Variations in the Nature of the Shadow Economy: Evidence from a Survey of 27 European Union Member States," Chapters, in: Friedrich Schneider (ed.), Handbook on the Shadow Economy, chapter 5, Edward Elgar Publishing.
    5. Xing, Yijun & Liu, Yipeng & Tarba, Shlomo Yedidia & Cooper, Cary L., 2016. "Intercultural influences on managing African employees of Chinese firms in Africa: Chinese managers’ HRM practices," International Business Review, Elsevier, vol. 25(1), pages 28-41.
    6. 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.
    7. Ceyhun Elgin & Ferda Erturk, 2019. "Informal economies around the world: measures, determinants and consequences," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 221-237, June.
    8. Colin C. Williams & Abbi Kedir & Meryem Fethi & Sara Nadin, 2012. "Evaluating 'Varieties of Capitalism' by the Extent and Nature of the Informal Economy: The Case of South-Eastern Europe," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 10(2), pages 113-130.
    9. Oksana Nezhyvenko, 2018. "Informal Employment in Ukraine and European Union Transition Countries," Erudite Ph.D Dissertations, Erudite, number ph18-03 edited by Philippe Adair, December.
    10. Rothenberg, Alexander D. & Gaduh, Arya & Burger, Nicholas E. & Chazali, Charina & Tjandraningsih, Indrasari & Radikun, Rini & Sutera, Cole & Weilant, Sarah, 2016. "Rethinking Indonesia’s Informal Sector," World Development, Elsevier, vol. 80(C), pages 96-113.
    11. Ahmadou Aly Mbaye & Nancy Benjamin & Stephen Golub & Jean-Jacques Ekomie, 2014. "The Urban Informal Sector in Francophone Africa: Large Versus Small Enterprises in Benin, Burkina Faso and Senegal," Working Papers 201405, University of Cape Town, Development Policy Research Unit.
    12. Colin C. Williams & Youssef Youssef, 2014. "Is Informal Sector Entrepreneurship Necessity- or Opportunity-driven? Some Lessons from Urban Brazil," Business and Management Research, Business and Management Research, Sciedu Press, vol. 3(1), pages 41-53, March.
    13. Rashmi Venkatesan, 2019. "The UN Framework on Business and Human Rights: A Workers’ Rights Critique," Journal of Business Ethics, Springer, vol. 157(3), pages 635-652, July.
    14. Alan Finkelstein Shapiro, 2015. "Institutions, Informal Labor Markets, and Business Cycle Volatility," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2015), pages 77-112, October.
    15. Colin C. Williams, 2014. "Confronting the Shadow Economy," Books, Edward Elgar Publishing, number 15370.
    16. Amin, Mohammad & Islam, Asif, 2015. "Are Large Informal Firms More Productive than the Small Informal Firms? Evidence from Firm-Level Surveys in Africa," World Development, Elsevier, vol. 74(C), pages 374-385.
    17. Colin C. Williams & Friedrich Schneider, 2016. "Measuring the Global Shadow Economy," Books, Edward Elgar Publishing, number 16551.
    18. Josip Franic, 2019. "Undeclared Economy in Croatia during the 2004–2017 Period: Quarterly Estimates Using the MIMIC Method," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 21(1), pages 5-46, June.
    19. Mathilde Bouvier & François Roubaud & Mireille Razafindrakoto & Roberta Teixeira, 2022. "Labour market transitions in the time of Covid-19 in Brazil:a panel data analysis," Working Papers DT/2022/02, DIAL (Développement, Institutions et Mondialisation).
    20. repec:ces:ifodic:v:14:y:2017:i:4:p:19267788 is not listed on IDEAS
    21. Daniil A. Sitkevich, 2022. "Shadow economy: To legalise or to tolerate?," Journal of New Economy, Ural State University of Economics, vol. 23(3), pages 6-22, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:intlab:v:154:y:2015:i:3:p:373-392. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/ilounch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.