Is Informal Normal?

Shoe shine workers in Cairo, street vendors in Calcutta, badly-paid public officials driving their taxis at night in the streets of Moscow: this is informal employment - jobs or activities in the production and marketing of legal goods and services that are not regulated or protected by the state. Over half the non-agricultural jobs in developing and emerging economies come into this category. In some regions, sub-Saharan Africa and South Asia, for example, as many as 80 per cent of jobs are informal; in a few countries, it is even higher. The informal sector deprives states of revenues and workers of social protection. It also, however, frequently constitutes the most dynamic part of the economy and creates massive employment. Informal employment is ubiquitous and growing. The financial crisis that began in 2008 has made the management of informal employment even more challenging. Responding to this emerging challenge is critical, not only for the well being of millions of workers but also for social development. Is Informal Normal? provides evidence for policy makers on how to deal with this issue of crucial importance for developing and developed countries alike. Professor Li Shi, Beijing Normal University: "In countries such as China, the exceptional scale of rural to urban migration amplifies the challenges from informality. This work provides valuable analytical results for understanding this major transformation, its problems and impacts." Professor Marty Chen, Harvard Kennedy School and WIEGO: "This volume is an important contribution to the current policy debates on the informal economy. It recommends providing support to the working poor in the informal economy, making formal structures more efficient and flexible and creating more formal jobs." Professor Gary Fields, Cornell University: "The strengths of this volume are many: evidence that "Informal Is Normal;" references to many newer studies and ways of thinking; the consistent three-pronged strategy; accessibility. Is Informal Normal? will serve as a reference in the literature on informality for years to come."
About the Author:

Johannes P. Jutting is Head of the Poverty Reduction and Social Development Unit at the OECD Development Centre. Juan Ramón de Laiglesia is an economist in the Poverty Reduction and Social Development group of the OECD.