Defining informality vs mitigating its negative effects

Elizabeth Ruppert Bulmer
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Elizabeth Ruppert Bulmer: World Bank, USA

IZA World of Labor, 2018, No 442, 442

Abstract: There are more informal workers than formal workers across the globe, and yet there remains confusion as to what makes workers or firms informal and how to measure the extent of it. Informal work and informal economic activities imply large efficiency and welfare losses, in terms of low productivity, low earnings, sub-standard working conditions, and lack of social insurance coverage. Rather than quibbling over definitions and measures of informality, it is crucial for policymakers to address these correlates of informality in order to mitigate the negative efficiency and welfare effects.

Keywords: definition of informality; informal employment; measurement; correlates of being informal (search for similar items in EconPapers)
JEL-codes: E26 J08 J32 J46 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (4)

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