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

Martha Chen

Working Papers from United Nations, Department of Economics and Social Affairs

Abstract: This paper explores the relationship of the informal economy to the formal economy and the formal regulatory environment. It begins with a discussion of the concept of the informal economy and its size, composition, and segmentation. It then discusses the linkages between the informal economy and the formal economy and the formal regulatory environment. The conclusion suggests why and how more equitable linkages between the informal economy and the formal economy should be promoted through an appropriate inclusive policy and regulatory environment.

Keywords: informal sector; informal economy; informal enterprises; informal workers; formal economy; formal regulatory environment; linkages; formalization (search for similar items in EconPapers)
JEL-codes: J01 J08 K23 K31 L22 L25 L26 O17 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2007-07
New Economics Papers: this item is included in nep-dev, nep-law and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (91)

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Persistent link: https://EconPapers.repec.org/RePEc:une:wpaper:46

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