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Informality in the construction sector in developing countries

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  • Jill Wells

Abstract

Studies dating from the mid 1990s describe a rapid expansion of 'informal' construction activity in many parts of the developing world. This has been accompanied by increasing diversity in the interpretation of the concept, leading to considerable confusion. Through a wide review of the literature an attempt is made to bring some clarity to the debate. It is argued that the essence of informality is the absence of regulation. As construction activity is subject to a wide variety of regulations, different interpretations of informality in the construction industry are inevitable. Four aspects of regulation are highlighted: regulation of enterprises, of the terms and conditions of employment, of the process of construction and of the product. This suggests four areas of informality: the informal sector of enterprises, informal labour, the informal construction system and informal building/settlements. The four areas are frequently interrelated. But there are no hard and fast dividing lines between formal and informal, rather a gradation.

Suggested Citation

  • Jill Wells, 2007. "Informality in the construction sector in developing countries," Construction Management and Economics, Taylor & Francis Journals, vol. 25(1), pages 87-93.
    • Handle: RePEc:taf:conmgt:v:25:y:2007:i:1:p:87-93
    DOI: 10.1080/01446190600601339
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    References listed on IDEAS

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    1. repec:ilo:ilowps:375964 is not listed on IDEAS
    2. Jason, Arthur., 2005. "Informal construction workers in Dar es Salaam, Tanzania," ILO Working Papers 993759643402676, International Labour Organization.
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    4. repec:ilo:ilowps:481146 is not listed on IDEAS
    5. Lu, You-Jie. & Fox, P. W., 2001. "The construction industry in China: its image, employment prospects and skill requirements," ILO Working Papers 994811463402676, International Labour Organization.
    6. Mitullah, Winnie V. & Njeri Wachira, Isabella., 2003. "Informal labour in the construction industry in Kenya : a case study of Nairobi," ILO Working Papers 994869303402676, International Labour Organization.
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    Cited by:

    1. Lone Riisgaard & Nina Torm & Godbertha Kinyondo & Winnie Mitullah & Anne Kamau & Aloyce Gervas & Raphael Indimuli, 2024. "Challenging the formality bias: The organization of informal work, working relations, and collective agency in Kenya and Tanzania," Development Policy Review, Overseas Development Institute, vol. 42(1), January.
    2. Elijah Frimpong Boadu & Cynthia Changxin Wang & Riza Yosia Sunindijo, 2020. "Characteristics of the Construction Industry in Developing Countries and Its Implications for Health and Safety: An Exploratory Study in Ghana," IJERPH, MDPI, vol. 17(11), pages 1-20, June.
    3. Nihan Yıldırım & Derya Gultekin & Doğan Tilkici & Dilek Ay, 2022. "An Institutional System Proposal for Advanced Occupational Safety and Labor Standards in the Turkish Construction Industry," IJERPH, MDPI, vol. 19(22), pages 1-31, November.
    4. Omer Ozgen, 2020. "Impact of Slum Redevelopment Projects on Labour Market Outcomes: Evidence from Addis Ababa," CSAE Working Paper Series 2020-23, Centre for the Study of African Economies, University of Oxford.
    5. Godwin Boateng, Festival, 2021. "A critique of overpopulation as a cause of pathologies in African cities: Evidence from building collapse in Ghana," World Development, Elsevier, vol. 137(C).
    6. Samwel Alananga Sanga & Justine Mselle, 2018. "Informal Construction Practices as Knowledge Incubators: A Conceptual Framework," Business and Economic Research, Macrothink Institute, vol. 8(1), pages 13-37, March.
    7. Ajit Jha, 2021. "Vulnerability of Construction Workers During COVID-19: Tracking Welfare Responses and Challenges," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(4), pages 1043-1067, December.
    8. Kumar, Sunil & Fernández, Melissa, 2016. "The urbanisation-construction-migration nexus (UCMnSA) in 5 cities in South Asia," LSE Research Online Documents on Economics 65861, London School of Economics and Political Science, LSE Library.
    9. Priyansha Singh & Chitra Rawat & Varun Aggarwal & Manish Maskara, 2020. "“Employers” in a Migrant Intensive Industry: Organised Construction in Thane, Maharashtra," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(4), pages 1183-1201, December.

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