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Modernizing the informal sector

Author

Listed:
  • Victor E. Tokman

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.

Suggested Citation

  • Victor E. Tokman, 2007. "Modernizing the informal sector," Working Papers 42, United Nations, Department of Economics and Social Affairs.
  • Handle: RePEc:une:wpaper:42
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    File URL: http://www.un.org/esa/desa/papers/2007/wp42_2007.pdf
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    Citations

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    Cited by:

    1. 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.
    2. Maksimov, Vladislav & Wang, Stephanie Lu & Luo, Yadong, 2017. "Reducing poverty in the least developed countries: The role of small and medium enterprises," Journal of World Business, Elsevier, vol. 52(2), pages 244-257.
    3. Antonio Andres & Carlyn Ramlogan-Dobson, 2011. "Is Corruption Really Bad for Inequality? Evidence from Latin America," Journal of Development Studies, Taylor & Francis Journals, vol. 47(7), pages 959-976.
    4. Gindling, T.H. & Newhouse, David, 2014. "Self-Employment in the Developing World," World Development, Elsevier, vol. 56(C), pages 313-331.
    5. Norbert Fiess & Marco Fugazza, 2008. "Trade Liberalisation and Informality: New stylized facts," Working Papers 2008_34, Business School - Economics, University of Glasgow.
    6. repec:taf:cpprxx:v:32:y:2017:i:2:p:212-225 is not listed on IDEAS
    7. repec:taf:irapec:v:31:y:2017:i:4:p:437-467 is not listed on IDEAS

    More about this item

    Keywords

    informal sector; regulation and informality;

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • D39 - Microeconomics - - Distribution - - - Other

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