The Function Of The Urban Informal Sector In Employment
The aim of this paper is to analyze the function of the informal sector in employment, its relationship to urban employment, with illustrative evidence from Colombia. The analysis is done for the period 1984 - 2000, which includes phases of boom and economic crisis as well as the implementation of neoliberal reforms to national development. The paper summarizes four competingapproaches to the conceptualization of the informal sector, and describes their measurement strategies. It argues that elements of state regulation are fundamental whereas firm size should not be considered as a defining element. Subsequently, it analyzes how the internal composition of the informal sector evolved, considering elements of state regulation, firm size, and dynamism ofthe economic activities. It examines the function of the informal sub-sectors in the urban labor market, using indicators such as relative earnings and size, and a crude indicator of labor mobility. At least three sub-sectors conforming theinformal sector are identified: salaried workers of large and small firms, entrepreneurs and subsistence workers. It is argued that each sub-sector of the informal sector responds in different ways to prevailing economic conditions. The subsistence sub-sector supports the dualistic view, whereas the other twoare integrated to the formal sector. No dominant sub-sector permits broadrange generalizations about the" informal sector."
|Date of creation:||31 Mar 2002|
|Contact details of provider:|| |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eduardo Lora & Carmen Pagés-Serra, 1997.
"La legislación laboral en el proceso de reformas estructurales de América Latina y el Caribe,"
Research Department Publications
4065, Inter-American Development Bank, Research Department.
- Eduardo Lora & Carmen Pagés, 1997. "La legislación laboral en el proceso de reformas estructurales de América Latina y el Caribe," IDB Publications (Working Papers) 7625, Inter-American Development Bank.
- William Maloney & Jairo Mendez, 2004. "Measuring the Impact of Minimum Wages. Evidence from Latin America," NBER Chapters,in: Law and Employment: Lessons from Latin America and the Caribbean, pages 109-130 National Bureau of Economic Research, Inc.
- Maloney, William F. & Nunez, Jairo & Cunningham, Wendy & Fiess, Norbert & Montenegro, Claudio & Murrugarra, Edmundo & Santamaria,Mauricio & Sepulveda, Claudia, 2001. "Measuring the impact of minimum wages : evidence from Latin America," Policy Research Working Paper Series 2597, The World Bank.
- William F. Maloney & Jairo Nunez Mendez, 2003. "Measuring the Impact of Minimum Wages: Evidence from Latin America," NBER Working Papers 9800, National Bureau of Economic Research, Inc.
- Fajnzylber, Pablo & Maloney, William F. & Ribeiro, Eduardo, 2001. "Firm entry and exit, labor demand, and trade reform : evidence from Chile and Colombia," Policy Research Working Paper Series 2659, The World Bank.
- Maloney, William F., 2004. "Informality Revisited," World Development, Elsevier, vol. 32(7), pages 1159-1178, July.
- Maloney, William, 2003. "Informality revisited," Policy Research Working Paper Series 2965, The World Bank.
- Maloney, William F, 1999. "Does Informality Imply Segmentation in Urban Labor Markets? Evidence from Sectoral Transitions in Mexico," World Bank Economic Review, World Bank Group, vol. 13(2), pages 275-302, May. Full references (including those not matched with items on IDEAS)