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1 – 10 of over 2000Aleksandra Webb, Ronald McQuaid and Sigrid Rand
Although the coronavirus (COVID-19) pandemic appears to disproportionately affect those in informal employment, they often receive less government support than the formally…
Abstract
Purpose
Although the coronavirus (COVID-19) pandemic appears to disproportionately affect those in informal employment, they often receive less government support than the formally employed. This paper considers definitions of the informal economy and informal employment, explores the rationale for participating in the informal economy and reflects on some effects of the pandemic on these workers.
Design/methodology/approach
The paper presents a narrative literature review with analysis of the selected academic and policy literature.
Findings
There are considerable short- and long-term implications of the pandemic for informal employment and the informal economy. This occurs against the background of unresolved tensions arising from informal workers' desire for more employment security and employers' striving for continued labour flexibility while transferring costs to government and workers. The COVID-19 pandemic might accelerate current trends and force new solutions to better protect basic work security while helping organisations to remain competitive. Government policies supporting work safety, income security, moves to formalisation of employment and fairness for informal employees are particularly important.
Research limitations/implications
As statistical and qualitative evidence is currently limited, it is too early to identify the full effects of COVID-19 on employment in the informal economy.
Practical implications
The results suggest that governments need to carefully consider explicit support for those in informal employment to create fair, resilient and ethical structures for workers, businesses, economies and wider societies.
Social implications
The paper identifies some of the social implications of COVID-19 for the informal sector.
Originality/value
The analysis offers initial insights into the impacts of a major health, economic and social shock on informal working.
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Joanna Shapland and Jason Heyes
Recent changes in the UK to the regulation and modes of work in the formal and informal economies are considered. Research in this field has tended to remain in silos (treating…
Abstract
Purpose
Recent changes in the UK to the regulation and modes of work in the formal and informal economies are considered. Research in this field has tended to remain in silos (treating formal economy working conditions separately from research on the informal economy). The question is whether the means of work and benefits to the worker for formal and informal work are now as different as the former images of formal and informal economy work imply under a “jobs-for-life” economy. The purpose of this paper is to consider whether the current aim of government regulation of the informal economy – to formalise it – is actually of benefit to workers, as might be supposed.
Design/methodology/approach
This paper considers recent research findings on the formal and informal economy, using official government statistics for the UK and more detailed European studies on the informal economy.
Findings
This paper argues that formal employment in the UK is becoming more casualised, with less associated benefits to employees. Though it is still of benefit to the state to formalise informal work (to increase tax take), some of the links between formalisation and a good working environment for workers are being broken, which may lead to the informal economy becoming more popular and requiring different priorities in its regulation.
Originality/value
This paper argues that we need to change our assumptions and image of work in the formal economy, compared to that in the informal economy.
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Bojan Dobovšek and Boštjan Slak
The purpose of this paper is to demonstrate the importance of studying the quasi-legal forms of informal economic behaviour that we know as the white informal economy. The paper…
Abstract
Purpose
The purpose of this paper is to demonstrate the importance of studying the quasi-legal forms of informal economic behaviour that we know as the white informal economy. The paper also sheds light on the role of the informal economy in the financial crisis that started in 2008. Finally, the aim of the paper is also to encourage empirical research about these concepts.
Design/methodology/approach
The paper is theoretical and based on a literature review.
Findings
The paper implies that when discussing about informal economy, different sub-categories should continue to be used in order to distinguish the various forms of informal economic practices. There is a particular need for research on practices of economic activities that are legal but not always moral, yet severely damaging. For such activities, the authors propose the term/categorisation the “white informal economy”. Additionally, the authors argue that in the causal links of events that brought about the financial crisis the role of the white informal economy was significant.
Practical implications
The paper wishes to encourage further research on the topic of (white) informal economy that in turn would also create the scenario for proper policy development for tackling tax avoidance, tax evasion and future financial crises.
Originality/value
The paper adds to scholarship that takes a critical standpoint towards the financial crisis and to scholarship on the informal economy. It presents an attempt to stimulate further discussion about the connectivity of the informal economy and the financial crisis.
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The purpose of this paper is to challenge the default portrayal of street trade as an informal occupation and spatial practice, by examining comparatively the changes in the…
Abstract
Purpose
The purpose of this paper is to challenge the default portrayal of street trade as an informal occupation and spatial practice, by examining comparatively the changes in the regulatory frameworks of two politically distinct city administrations in Latin America since the introduction of the informal economy debate.
Design/methodology/approach
This paper draws from a comparative case study design to synthesize evidence from historical administrative records, secondary research and materials from a two-year fieldwork carried out in Lima and Bogotá in 2008 and 2009.
Findings
The author argues that the incorporation of the informal economy framework into local governments’ policymaking has reframed street trade as a subject of policy. Since the 1970s, the author traces a shift from worker-centered initiatives, through the deregulation of street trade, to entrepreneurial-centered approaches. Nowadays, both, Lima’s neoliberal governance focusing on “formalizing” and Bogotá’s socialist/progressive governance aiming at “upgrading” street trade respond more explicitly to distinct assessments about the informal economy – legalist and dualist, respectively. Yet, both cities converge in that the closer street trade is perceived as an informal occupation; the more likely policy initiatives decouple the right to work from the right to access public space, spurring more marginal forms of street vending.
Originality/value
Even though the informal economy framework has helped to draw attention to important policy issues locally, nationally and internationally, this paper calls for a critical revision of such framing at the local level to allow for inclusive urban governance.
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The purpose of this paper is to contribute original evidence about the conditions for formal and informal contracts for commodities and labour in the waste economy of a South…
Abstract
Purpose
The purpose of this paper is to contribute original evidence about the conditions for formal and informal contracts for commodities and labour in the waste economy of a South Indian town.
Design/methodology/approach
Field research was exploratory, based on snowball sampling and urban traversing. The analysis follows capital and labour in the sub-circuits of capital generating waste in production, distribution, consumption, the production of labour and the reproduction of society.
Findings
Regardless of legal regulation, which is selectively enforced, formal contracts are limited to active inspection regimes; direct transactions with or within the state; and long-distance transactions. Formal labour contracts are least incomplete for state employment, and for relatively scarce skilled labour in the private sector.
Research limitations/implications
The research design does not permit quantified generalisations.
Practical implications
Waste management technology evaluations neglect the social costs of displacing a large informal labour force.
Social implications
While slowly dissolving occupational barriers of untouchability, the waste economy is a low-status labour absorber of last resort, exit from which is extremely difficult.
Originality/value
The first systematic exploration of formal and informal contracts in an Indian small-town waste economy.
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Informal street vending is traditionally widespread and studied concerning developing countries. Nevertheless, recently, interest in the study of this practice has also increased…
Abstract
Purpose
Informal street vending is traditionally widespread and studied concerning developing countries. Nevertheless, recently, interest in the study of this practice has also increased regarding specific developed countries. The aim of the article is to contribute to overcoming the tendency to investigate this informal economy sector with different analytical lenses between the global South and global North and to highlight the usefulness of analyzing the phenomenon from a comparative perspective.
Design/methodology/approach
Therefore, the article represents a comparative review of the existing literature on informal street vending considering both the global South and global North.
Findings
The analysis revealed similarities and differences in the characteristics the phenomenon assumes in the two areas of the world while at the same time, showing how there are aspects mainly explored in the literature of southern countries and little explored in the literature of northern countries and vice-versa.
Research limitations/implications
This analytical attempt allows us to highlight any gaps present in the literature, which may represent the basis for future comparative research on the topic. Comparative research will improve both theoretical and empirical knowledge of the phenomenon.
Originality/value
On the one hand, the article represents an innovative literature review attempt, as it explicitly compares the street vending between developing and developed countries. On the other hand, it represents the first academic contribution to review street vending in the global North.
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Sinhle Thwala, Tyanai Masiya and Stellah N. Lubinga
This study aims to investigates the contribution of the informal sector towards secure livelihoods. Using a case study design, the study focusses on Mandela park, situated in…
Abstract
Purpose
This study aims to investigates the contribution of the informal sector towards secure livelihoods. Using a case study design, the study focusses on Mandela park, situated in Khayelitsha Township, Cape Town, in the Western Cape province of South Africa. Khayelitsha is predominantly an old township established by the apartheid government using unjust segregation laws to foster spatial planning that isolated people of colour in areas with insufficient infrastructure and informal economic activities. Therefore, informal trading became a survival strategy in Khayelitsha, attracting an increasing number of informal traders in public spaces within the township in pursuit of livelihoods. Informal activities are generally conducted to generate income and secure sustainable livelihoods.
Design/methodology/approach
This study uses a qualitative research design, incorporating structured interviews instrumental in data collection and in-depth thematic analysis.
Findings
The study findings reveal that the informal sector positively contributes to the sustainable livelihoods of those involved in the informal sector and the relatives of those through income generation, family support, wealth creation, source of employment, business incubation and innovation and creativity.
Originality/value
The study concludes that given the increasing unemployment rate in South Africa, caused by the stagnant economic growth rate, policymakers should rethink their policies on the informal economy, acknowledge the sector's relevance and support the sector.
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This paper aims at assessing the impact of a number of behavioral interventions on the willingness of informal businesses, in the Egyptian informal sector, to join the formal…
Abstract
Purpose
This paper aims at assessing the impact of a number of behavioral interventions on the willingness of informal businesses, in the Egyptian informal sector, to join the formal sector.
Design/methodology/approach
This paper uses an experimental methodology to examine the impact of behavioral interventions on the formalization of the Egyptian informal sector. Specifically, it conducts a survey experiment on a total of 240 informal businesses, operating in the Egyptian informal sector. The primary data collected from the survey experiment is then analyzed using a binary logistic regression to assess the impact of the behavioral primes on the probability of joining the formal market.
Findings
The empirical findings of the survey experiment indicate that the biggest obstacle facing informal businesses is finding a formal source of finance that could help them in penetrating the market. Providing informal businesses with information on funding opportunities offered by the ministry of micro, small and medium enterprises (MSME) significantly increased the probability of joining the formal sector to benefit from this opportunity.
Originality/value
This paper is the first to apply behavioral primes, in the form of informational cues, to the Egyptian case of informal business owners. Previous research on the use of behavioral nudges and primes has focused mainly on the western economies.
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Segun Thompson Bolarinwa and Munacinga Simatele
The paper validates the threshold argument in the informality–poverty nexus. Recent literature and policy have argued the existence of a threshold in the relationship.
Abstract
Purpose
The paper validates the threshold argument in the informality–poverty nexus. Recent literature and policy have argued the existence of a threshold in the relationship.
Design/methodology/approach
The study adopts dynamic panel threshold analysis, estimated within the framework of system Generalized Method of Moments (SGMM) to control for endogeneity and simultaneity. Data from 40 selected sub-Saharan African countries between 1991 and 2018 are used for the study.
Findings
Empirical results confirm the existence of an average threshold of 31% share of informality in GDP. Also, the paper finds that threshold of informality that addresses mild and severe poverty varies between 24.32 and 36.75%.
Research limitations/implications
The work is limited to African economies. Evidence from other emerging and developed economies is suggested for further research.
Practical implications
Overall, the empirical results indicate a threshold in the informality–poverty nexus. Therefore, an excessive informality level does not benefit the African growth process. Policymakers and governments are advised to operate within the bounds of the threshold of informality that reduces poverty and improve the African economic growth process.
Originality/value
The paper is the first study to provide empirical findings on the nonlinear and threshold argument in the informality–poverty nexus, as far as the authors know.