The informal sector plays a very important role in economic development in both complex and simple economies alike. Informality embodies the spirit of entrepreneurship and it is the way people ensure their livelihoods even when excluded from the informal sector (Allen). Development literature puts most emphasis on the establishment of democratic capitalism as the only path to economic development in low and middle-income countries. This research largely ignores the fact that some rich countries with high HDI still have a large informal sector that fuels the economy; such as it is the case of Italy (with 33%) and Sweden (15%) of their economic activity coming from the informal sector. … More Should the Informal Sector be Regulated?
This chart illustrates the share of corporate income received by workers (in the form of wages and benefits) from January 1979 through April 2015. As the Economic Policy Institute explains, Typically, the labor share rises during recessions because profits fall much faster than wages during downturns … More Share of corporate income received by US workers from 1979 to 2015.