Informal Economy

Question 0

Hart 2007

Answer 0

Coined the term informal. Informality as a paradox that allows freedom and flexibility.

Question 1

Potter et al 2012, Chant 2008, Kabeer 2008

Answer 1

Connection between poverty, vulnerability and the availability of decent work

Question 2

Lewis 1954

Answer 2

Dualism: 2 distinct economies in third world countries.

Modern/industrial versus traditional/backward

Question 3

Potter et al 2012

Answer 3

2 economies seen as separate unlinked with traditional sector acting as a barrier to development.

Question 4

Chant 2008, Thomas 2008

Answer 4

Dualism fails to recognise that the economies are inextricably linked through backward and forward linkages.

Question 5

Daniels 2004

Answer 5

Formal/ Informal continuum

Question 6

Lloyd Evans 2008

Answer 6

Enterprise approach versus worker based approach

Integrated approach

Question 7

Tokman 1991

Answer 7

3 divisions of legality: legal recognition, legality of tax and legality of labour regulations.

Question 8

Maloney 2004

Answer 8

Urban informal economy should be viewed as a micro-enterprise voluntary small firm sector not a disadvantaged residual of a segmented labour market

Question 9

Chant 2008

Answer 9

Informal employment has economic potential, not always a poverty trap.

Question 10

Thomas 2002

Answer 10

Globalisation has increased informal employment in 3 ways:

• top down processes
• jobless growth
• bottom up informality

Question 11

Chant 2008

Answer 11

Informality has increased because:

• recession and neoliberal economic restructuring relocates work
• plucky entrepreneurs use it for tax avoidance
• demonstration of the poor (DeSoto)

Question 12

Chant 2008

Answer 12

Crisis and restructuring have made the interconnectedness of formal and informal more visible.

Question 13

McIlwaine, Chant and Lloyd Evans 2002

Answer 13

Informal economy seen as a rear army of labour connected to formal sector through exploitation of vulnerable workers in global supply chains

Question 14

Carr and Chen 2004

Answer 14

Trade liberalisation and globalisation have cause social exclusion through unemployment, precarious work and long term participation in the informal economy.

Question 15

Kabeer 2008

Answer 15

Reconceptualisation of informal sector - working conditions and labour relations exclusive to informal sector are expanding into formal sector including a shift towards flexibility.

Question 16

Cox and Wyatt 2002

Answer 16

Informal economy a globalised concept - economic restructuring in developing economy has encouraged growth in informal economy and low level work, example of migrant workers in London.

Question 17

Scott 1994

Answer 17

Informal/ Formal axis of segmentation too blind to gender.

Further axis of segmentation reveal that women often are employed in highest risk lowest paid work regardless of formality.

Question 18

Chen et al 2006

Answer 18

‘Iceberg model’

Gender sensitive model of the informal labour force which depicts least visible lowest waged at the bottom. Gender division in both earnings and status.

Question 19

Chant and Pedwell 2008

Answer 19

While gender differentiation can be a result of structural disadvantage ie low education and low skill but women also often choose informal employment as a positive opportunity to balance reproductive and market roles - triple burden of paid, household, care work.

Question 20

Heintz 2008

Answer 20

Gender division of labour places less value in women’s paid work, reinforces dependency of male breadwinners and decreasing women’s access and influence over distribution of resources.

Question 21

Kabeer 2005

Answer 21

Women most vulnerable therefore have most to gain!

Question 22

Chant and McIlwaine 2009

Answer 22

Feminisation of labour and women’s increases participation in the workforce only to be marginalised

Question 23

Kabeer 2008

Answer 23

Comparative advantage in women’s disadvantage

Question 24

Razari 2007, Moser 2006

Answer 24

Importance of unpaid reproductive work - care economy and reproductive tax

Question 25

Fernandez-Kelly 2006

Answer 25

To merge formal and informal would create a cheap reproduction of the working class.

Question 26

Potts 2008

Answer 26

State policy depends on whether the informal economy is seen as entrepreneurial and empowering or damaging to development. Different degrees of tolerance

Question 27

Robertson 2007

Answer 27

Example of South Africa what has ‘first’ and ‘second’ economies in effort to recognise contribution of informal economy.

Criticised for legitimising business needs over unequal development. Largely unsuccessful though as informal economy still lacks support, seen as lower.