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?
From the recent ILO (International Labour Organization) World Employment and Social Outlook – the changing nature of jobs publication. The part on labour and the increasing importance of international supply chains is a ‘must read’ – the economic history of today. Where are workers less likely to have a permanent contract? Increasing poverty for households … More World employment and social outlook 2015. The changing nature of jobs