Indian Journal of Industrial Relations: Economics & Social Dev.

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Informal Employment Revisited: Theories, Data & Policies


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1 WIEGO Network &Lecturer in Public Policy, Harvard Kennedy School, Cambridge, MA 02138, United States
     

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This paper provides a summary overview of recent rethinking and latest data on informal employment, particularly in developing countries. The paper begins with the examination of the two official international statistical definitions of the 'informal sector' and 'informal employment'. It then addresses the 'formalization of the informal economy' debate and presents a comprehensive framework for responding to informal enterprises and informal jobs. The paper analyzes why existing labor market models and regulations need to be re-examined in the light of the reality and complexity of informal employment today. The authors conclude that employment should be the cornerstone of the development agenda and that economic diversity should be the cornerstone of the future economy.
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  • International Labor Organization (2003), Scope of the Employment Relationship: Report IV, International Labor Conference, 91st Session, Geneva: ILO.

  • International Labor Organization (2002), Women and Men in the Informal Economy: A Statistical Picture. Geneva, Switzerland: ILO. Written by Marty Chen and Joann Vanek using multi-country data analyzed by Jacques Charmes and country studies by Debbie Budlender, Peter Buwembo, Nozipho Shabala, Jeemol Unni, Marge Guerrero, Rodrigo Negrete, Françoise Carré, and Joaquin Herranz, Jr.

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  • International Labor Organization (1972), Employment, Incomes and Equality: A Strategy for Increasing Productive Employment in Kenya, Geneva: ILO.

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  • Lewis, W.A. (1954), “Economic Development with Unlimited Supplies of Labor”, Manchester School of Economic and Social Studies, 23(2)

  • Singer, H.W. (1970), “Dualism Revisited: A New Approach to the Problems of Dual Society in Developing Countries”, Journal of Development Studies, 7(1 January)

  • Vanek, J, M. Chen, R. Hussmanns, J. Heintz, & F. Carre (2012), Women and Men in the Informal Economy: A Statistical Picture, Geneva: ILO & WIEGO.

  • World Bank (2012), World Development Report 2013 on Jobs, Washington, D.C: World Bank.


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  • Informal Employment Revisited: Theories, Data & Policies

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Authors

Joann Vanek
WIEGO Network &Lecturer in Public Policy, Harvard Kennedy School, Cambridge, MA 02138, United States

Abstract


This paper provides a summary overview of recent rethinking and latest data on informal employment, particularly in developing countries. The paper begins with the examination of the two official international statistical definitions of the 'informal sector' and 'informal employment'. It then addresses the 'formalization of the informal economy' debate and presents a comprehensive framework for responding to informal enterprises and informal jobs. The paper analyzes why existing labor market models and regulations need to be re-examined in the light of the reality and complexity of informal employment today. The authors conclude that employment should be the cornerstone of the development agenda and that economic diversity should be the cornerstone of the future economy.

References