Growth, economic structure and informality

Chacaltana, Juan; Bonnet, Florence; García, Juan Manuel Méjica

doi:10.54394/uqof2851

Cited by 10 publications

(4 citation statements)

References 14 publications

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“…75 Broadly dened, an informal economy is the unreported trade of goods and services that may or may not involve cash exchanges. 27,76 The informal economy accounts for a large but unquantied proportion of the rural Alaska economy, 27,77,78 30% of the global GDP 79 and 8% of the American GDP. 76 The ubiquity of the informal economy around the world makes our ndings relevant to communities outside of Alaska.…”

Section: Informal Economymentioning

confidence: 99%

The Alaska permanent fund dividend increases residential payments for water services

Johnson,

Molina,

Herrmann

et al. 2024

Environ. Sci.: Adv.

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Section: Informal Economymentioning

confidence: 99%

The Alaska permanent fund dividend increases residential payments for water services

Johnson,

Molina,

Herrmann

et al. 2024

Environ. Sci.: Adv.

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“…Various factors, such as the nature of economic growth, the legal framework, and integration into the global economy, offer potential explanations for the intricate connection between informal and formal sectors. In nations heavily reliant on capitalintensive methods for growth, formal employment might prove insufficient to absorb the labor force (Chacaltana et al, 2022). Furthermore, the absence of a suitable regulatory framework and its enforcement can dissuade firms from creating formal sector positions, even during periods of economic expansion (ibid).…”

Section: Economic Developmentmentioning

confidence: 99%

The Diversity of Informal Employment: a survey of drivers, outcomes, and policies

Duman

2024

Preprint

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Informal employment is widespread across many developing countries and remains to be the source of livelihood for billions of workers and their families. Even though diverse forms of informal employment can be seen globally, the paper mainly focuses on developing countries due to high share and endurance of the informal sector. The aim of the paper is to provide a comprehensive overview of the drivers and outcomes of informal employment by distinguishing between wage labor and self-employment. Additionally, the paper reviews potential policies that could incentivize workers and informal firms to transition to the formal sector. Given that the impact of informal employment on workers’ well-being is closely tied to individual characteristics and job status, the paper also examines the various types of informal employment that exist across different working groups. This includes informal employment among women, youth, and vulnerable groups such as migrant workers. Finally, the paper briefly discusses potential policies aimed at formalizing informal enterprises and offering greater protections to informal employees. This includes measures such as improving access to social protection benefits, promoting skills development, and training for informal workers, and creating more flexible and adaptable regulatory frameworks that can better accommodate the needs of informal firms.

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“…Although they are outside the legal framework, they represent an important sector in the generation of income and employment, while they contribute effectively to reducing poverty [International Monetary Fund (FMI), 2021]. The gross domestic product generated by informal activities is estimated to fluctuate between 15% and 35% for each country [Chacaltana et al , 2022; International Monetary Fund (FMI), 2021]. These informal businesses are characterized by being companies with low productivity and added value; they do not have more than five workers, and they even happen to be the only self-employed (Abramo, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

Informality as a choice to do legitimate business: evidence from Peruvian women in times of COVID-19

Silupu,

Reyes

2023

MRJIAM

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Purpose In developing countries, women microentrepreneurs are characterized as being informal, creating a challenge for the sustainability of their businesses. The purpose of this study is to analyze different businesses that adopt this form of operation arguing that formality is unnecessary because they are legitimate businesses (institutional reason). In addition, the role of gender in business management was incorporated, and the consistency of the results was validated in the context of COVID-19. Design/methodology/approach This study used data from the National Household Survey of Peru for the development of a compared analysis between the period 2018–2019 (pre-COVID-19), made up of a sample of 14,077 observations, and the period 2020–2021 (COVID-19), with 7,922 observations. The unit of analysis was the informal microenterprise with more than three years of operation, and the data was analyzed using a logistic model. Findings The probability of adopting informality for institutional reasons is more significant in the case of women in contrast to the men when it is a business belonging to the commerce sector and operating in a dwelling with basic services, while this probability decreases if the firm does not have a fixed location. These results are consistent in pre-COVID-19 and COVID-19 periods. Originality/value The purpose of this research was to contribute to closing gaps in the generation of evidence that helps to understand the behavior of informal microentrepreneurs in developing countries, allowing a better approach to this problem for the design and implementation of suitable public policies. All this will contribute to the accomplishment of the Sustainable Development Goals.

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Growth, economic structure and informality

Cited by 10 publications

References 14 publications

The Alaska permanent fund dividend increases residential payments for water services

The Alaska permanent fund dividend increases residential payments for water services

The Diversity of Informal Employment: a survey of drivers, outcomes, and policies

Informality as a choice to do legitimate business: evidence from Peruvian women in times of COVID-19

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