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Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment

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  • Marty Chen

Abstract

This paper explores the relationship of the informal economy to the formal economy and to the formal regulatory environment. It begins with a comparison of the earlier concept of the 'informal sector' with the new expanded concept of the 'informal economy' which includes microentrepreneurs, own account operators, informal wage workers, and industrial outworkers.

Suggested Citation

  • Marty Chen, 2005. "Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment," WIDER Working Paper Series RP2005-10, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2005-10
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2005-10.pdf
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    References listed on IDEAS

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    6. Dani Rodrik, 1998. "Has Globalization Gone Too Far?," Challenge, Taylor & Francis Journals, vol. 41(2), pages 81-94, March.
    7. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
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