Publication:
Informal Economy and the World Bank

Simple item page
dc.contributor.authorRecanatini, Francesca
dc.contributor.authorBenjamin, Nancy
dc.contributor.authorSantini, Massimiliano
dc.contributor.authorBeegle, Kathleen
dc.date.accessioned2014-06-26T21:34:21Z
dc.date.available2014-06-26T21:34:21Z
dc.date.issued2014-05
dc.description.abstractMany countries have expressed an interest in the size, performance and motivation of the informal sector, especially where the informal sector provides the livelihood and employment for a critical segment of the population. This essay reviews recent literature, methodologies, and relevant Bank studies as a way to share information with country teams interested in expanding their knowledge of the informal sector and related policy debates. Research in a number of regions points to four main areas where development policy can be improved by taking the informal sector into account. First, improvements should be made along a continuum; the heterogeneity among informal firms points to different policy approaches for different types of firms. Second, there should be public-private collaboration on mutual reforms. Many efforts to improve firm performance focus on elements of the production function (labor skills, credit) while treating government mainly as a cost (taxes, cost of compliance with regulations). Yet research reveals that many characteristics of the public regime strongly influence the decisions of firms regarding informality. Third, research indicates a strong relation between basic skills and labor outcomes, particularly in the informal sector, despite the sector's lower average returns. Research also indicates the benefits of targeted training programs. Business services programs have a decidedly mixed record, yet ongoing research is refining results on what works best. Fourth, informal trade is pervasive in developing countries and the networks developed in informal trade -- wholesalers, credit suppliers and money-changers, transporters -- are a strong presence in the informal sector. Yet these kinds of complex and nontransparent trading systems can be discouraging to foreign investors and can otherwise undermine trade policy and the international competitiveness of developing countries. The paper concludes with recommendations.en
dc.identifierhttp://documents.worldbank.org/curated/en/2014/04/19553386/informal-economy-world-bank
dc.identifier.doi10.1596/1813-9450-6888
dc.identifier.urihttps://hdl.handle.net/10986/18799
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6888
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO SERVICES
dc.subjectACCOUNTING
dc.subjectACTION PLAN
dc.subjectAGE GROUP
dc.subjectAGRICULTURE
dc.subjectBANKING SYSTEM
dc.subjectBARRIERS TO ENTRY
dc.subjectBILATERAL TRADE
dc.subjectBUSINESS CLIMATE
dc.subjectBUSINESS DEVELOPMENT
dc.subjectBUSINESS DEVELOPMENT SERVICES
dc.subjectBUSINESS ENTRY
dc.subjectBUSINESS ENVIRONMENT
dc.subjectBUSINESS REGISTRATION
dc.subjectBUSINESS REGULATIONS
dc.subjectBUSINESS SERVICE
dc.subjectBUSINESS SERVICES
dc.subjectBUYERS
dc.subjectCAPABILITY
dc.subjectCDS
dc.subjectCIVIL SERVICE
dc.subjectCOMMERCE
dc.subjectCOMMODITIES
dc.subjectCOMPETITIVENESS
dc.subjectCOMPETITORS
dc.subjectCONSUMER GOODS
dc.subjectCONSUMERS
dc.subjectCONTRACTUAL ARRANGEMENTS
dc.subjectCUSTOMER BASE
dc.subjectCUSTOMS
dc.subjectCUSTOMS DECLARATIONS
dc.subjectDAY LABORERS
dc.subjectDEBT
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDISADVANTAGED GROUPS
dc.subjectDISTRIBUTION NETWORK
dc.subjectDOMESTIC WORKERS
dc.subjectDRIVERS
dc.subjectECONOMIC ACTIVITIES
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC COOPERATION
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC PROGRAMS
dc.subjectECONOMIC SURVEYS
dc.subjectELASTICITY
dc.subjectELECTRICAL ENERGY
dc.subjectEMPLOYEE
dc.subjectEMPLOYMENT
dc.subjectEMPLOYMENT GROWTH
dc.subjectEMPLOYMENT PROSPECTS
dc.subjectEMPLOYMENT STATUS
dc.subjectENTERPRISE SURVEY
dc.subjectENTERPRISE SURVEYS
dc.subjectENTREPRENEURS
dc.subjectENTREPRENEURSHIP
dc.subjectESTIMATED WAGE PREMIUM
dc.subjectEXPANSION
dc.subjectEXPORTS
dc.subjectFIRM ENTRY
dc.subjectFIRM LEVEL
dc.subjectFIRM PERFORMANCE
dc.subjectFIRM PRODUCTIVITY
dc.subjectFIRM SIZE
dc.subjectFIRM SURVEYS
dc.subjectFIRM-LEVEL ANALYSIS
dc.subjectFLOW OF GOODS
dc.subjectFLOW OF INFORMATION
dc.subjectFOREIGN TRADE
dc.subjectFORMAL SECTOR WAGE
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGLOBAL ECONOMY
dc.subjectGOVERNMENT REVENUES
dc.subjectGROWTH POTENTIAL
dc.subjectHOUSEHOLD ENTERPRISE
dc.subjectHOUSEHOLD ENTERPRISES
dc.subjectHOUSEHOLD SURVEYS
dc.subjectHUMAN CAPITAL
dc.subjectIMPORT QUOTAS
dc.subjectINCOME
dc.subjectINCOME LEVELS
dc.subjectINFORMAL ECONOMY
dc.subjectINFORMAL EMPLOYMENT
dc.subjectINFORMAL SECTOR
dc.subjectINFORMAL SECTOR WORKERS
dc.subjectINFORMATION GAP
dc.subjectINTERNATIONAL COMPETITIVENESS
dc.subjectJOB CREATION
dc.subjectJOBS
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET
dc.subjectLABOR MIGRATION
dc.subjectLABOR MOBILITY
dc.subjectLABOR ORGANIZATION
dc.subjectLABOR PRODUCTIVITY
dc.subjectLABOR REGULATIONS
dc.subjectLABOUR
dc.subjectLAWS
dc.subjectLDCS
dc.subjectLEGAL ENVIRONMENT
dc.subjectLEVEL PLAYING FIELD
dc.subjectLICENSE
dc.subjectLOCAL GOVERNMENT
dc.subjectMANUFACTURING
dc.subjectMARGINAL PRODUCTS
dc.subjectMARKET PLACES
dc.subjectMARKET RESEARCH
dc.subjectMICROENTERPRISES
dc.subjectMIDDLE INCOME COUNTRIES
dc.subjectNATIONAL ECONOMIES
dc.subjectNATIONAL ECONOMY
dc.subjectNETWORKS
dc.subjectNON-FARM EMPLOYMENT
dc.subjectONE-STOP SHOP
dc.subjectOPEN ACCESS
dc.subjectPAYMENT OF TAXES
dc.subjectPENSIONS
dc.subjectPERFORMANCES
dc.subjectPRIMARY OBJECTIVE
dc.subjectPRIVATE FIRMS
dc.subjectPRIVATE SECTOR
dc.subjectPRIVATE SECTOR DEVELOPMENT
dc.subjectPRIVATE SECTOR JOBS
dc.subjectPRIVATE SECTOR WAGE
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTIVE FIRMS
dc.subjectPRODUCTIVITY DIFFERENTIAL
dc.subjectPRODUCTIVITY GAP
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPROFIT MARGINS
dc.subjectPROFITABILITY
dc.subjectPROPERTY RIGHTS
dc.subjectPROTECTING WORKERS
dc.subjectPUBLIC AGENCIES
dc.subjectPUBLIC EMPLOYMENT
dc.subjectPUBLIC SECTOR EMPLOYMENT
dc.subjectPUBLIC SECTOR JOB
dc.subjectPUBLIC SERVICES
dc.subjectPUBLIC UTILITIES
dc.subjectREGISTRIES
dc.subjectREGULATORY BURDEN
dc.subjectREGULATORY ENVIRONMENT
dc.subjectREGULATORY FRAMEWORKS
dc.subjectRESULT
dc.subjectRESULTS
dc.subjectRETAIL TRADE
dc.subjectRURAL ­ URBAN MIGRATION
dc.subjectSALARIED WORKERS
dc.subjectSAVINGS
dc.subjectSCALE ENTERPRISES
dc.subjectSELF EMPLOYMENT
dc.subjectSHOP
dc.subjectSKILLED LABOR
dc.subjectSKILLS DEVELOPMENT
dc.subjectSMALL BUSINESSES
dc.subjectSMALL ENTERPRISES
dc.subjectSMALL FIRM
dc.subjectSMALL FIRMS
dc.subjectSME
dc.subjectSOCIAL SERVICES
dc.subjectSOCIOLOGISTS
dc.subjectSTATE INTERVENTION
dc.subjectSUPPLIER
dc.subjectSUPPLIERS
dc.subjectSUPPLY CHAIN
dc.subjectSUPPLY NETWORKS
dc.subjectTARGETS
dc.subjectTAX CAPACITY
dc.subjectTAX COMPLIANCE
dc.subjectTAX REVENUES
dc.subjectTAXATION
dc.subjectTEMPORARY WORKERS
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTOTAL OUTPUT
dc.subjectTRADE FACILITATION
dc.subjectTRADE FLOWS
dc.subjectTRADE POLICIES
dc.subjectTRADE POLICY
dc.subjectTRAINING PROGRAM
dc.subjectTRAINING PROGRAMS
dc.subjectTRANSPORT
dc.subjectUNEMPLOYED
dc.subjectUNEMPLOYMENT
dc.subjectUNFAIR COMPETITION
dc.subjectUNPAID FAMILY WORKERS
dc.subjectURBANIZATION
dc.subjectUSES
dc.subjectVALUE ADDED
dc.subjectVENDORS
dc.subjectVOCATIONAL TRAINING
dc.subjectWAGE EMPLOYMENT
dc.subjectWAGE PREMIUM
dc.subjectWEALTH
dc.subjectWEB
dc.subjectWORKER
dc.subjectWORKERS
dc.subjectWORKING CONDITIONS
dc.subjectWORKING POOR
dc.subjectYOUTH EMPLOYMENT
dc.titleInformal Economy and the World Banken
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleInformal Economy and the World Bank
okr.date.disclosure2014-05-15
okr.date.doiregistration2025-04-10T11:25:14.672532Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2014/04/19553386/informal-economy-world-bank
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeFinance and Markets
okr.globalpracticeTransport and ICT
okr.globalpracticeTrade and Competitiveness
okr.guid416741468332060156
okr.identifier.doi10.1596/1813-9450-6888
okr.identifier.externaldocumentum000158349_20140522153248
okr.identifier.internaldocumentum19553386
okr.identifier.reportWPS6888
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/05/22/000158349_20140522153248/Rendered/PDF/WPS6888.pdfen
okr.topicFinance and Financial Sector Development::Microfinance
okr.topicBanks and Banking Reform
okr.topicEconomic Theory and Research
okr.topicSocial Protections and Labor::Labor Markets
okr.topicPrivate Sector Development::E-Business
okr.topicMacroeconomics and Economic Growth
okr.unitEconomic Policy and Debt Department., Poverty Reduction and Economic Management Network
okr.volume1 of 1
relation.isAuthorOfPublicationbd7bd81e-e7b4-553e-8b9e-5c312814565a
relation.isAuthorOfPublication96210c0d-5b86-5feb-93d2-1f3d7a36da17
relation.isAuthorOfPublication.latestForDiscovery96210c0d-5b86-5feb-93d2-1f3d7a36da17
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
WPS6888.pdf
Size:
1023.39 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
WPS6888.txt
Size:
114.47 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers