This Modern Guide presents a comprehensive synthesis of contemporary thought on the informal economy, which, as the author demonstrates – far from being a peripheral feature of the global economy – is a system in which the majority of the global workforce are employed and which has pervasive detrimental effects. Formalising it is therefore a priority for most governments.
Employing theoretical and empirical methodologies, Colin C. Williams explores the latest research on methods of understanding and measuring the informal economy in its various forms, and discusses the rationale behind its participants. Its rigorous discussion of the need to shift away from solely using tools that punish the practice and towards aligning social norms with the regulations of formal institutions is complemented by a rich analysis of how jobs and enterprises across the world can be encouraged to make the transition towards formalism. Incentives, education and reform are among the strategies advocated in this Modern Guide’s compelling and lucid roadmap for the transition to formality.
An invaluable resource for policymakers involved in tax, social security and labour policies, belonging to both governments and supra-national institutions, the book will also be valuable for academics and researchers in sociology, economics and business studies, especially those with an interest in taxation, industrial relations, entrepreneurship and labour economics.
Author(s): Colin C. Williams
Series: Elgar Modern Guides
Publisher: Edward Elgar Publishing
Year: 2023
Language: English
Pages: 410
City: Cheltenham
Front Matter
Copyright
Contents
Figures
Tables
Acknowledgements
1. Introduction to the informal economy
PART I Theoretical and methodological perspectives
2. Evolution of theories explaining the informal economy
3. Methods for measuring the size of the informal economy
PART II Magnitude and character of the informal economy
4. Prevalence of the informal economy in global perspective
5. Types of work in the informal economy
6. Who participates in the different types of informal work and why?
PART III Policy approaches
7. Policy options for tackling the informal economy: objectives and policy measures
8. Deterring participation in the informal economy
9. Incentives to operate in the formal economy
10. Education and awareness raising to encourage formalisation
11. Reforming formal institutions to encourage formalisation
12. Conclusions and a future roadmap for the transition to formality
References
Index
