Publication:
On Defining and Measuring the Informal Sector

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dc.contributor.authorHenley, Andrew
dc.contributor.authorArabsheibani, G. Reza
dc.contributor.authorCarneiro, Francisco G.
dc.date.accessioned2012-06-18T20:14:20Z
dc.date.available2012-06-18T20:14:20Z
dc.date.issued2006-03
dc.description.abstractA range of alternative empirical definitions of informal activity have been employed in the literature. Choice of definition is often dictated by data availability. Different definitions may imply very different conceptual understandings of informality. In this paper the authors investigate the degree of congruence between three definitions of informality based on employment contract registration, social security protection, and the characteristics of the employer and employment using Brazilian household survey data for the period 1992 to 2001. The authors present evidence showing that 64 percent of the economically active population are informal according to at least one definition, but only 40 percent are informal according to all three. Steady compositional changes have been taking place among informal workers, conditional on definition. The econometric analysis reveals that the conditional impact of particular factors (demographic, educational attainment, and family circumstances) on the likelihood of informality varies considerably from one definition to another. The results suggest growing heterogeneity within the informal sector. Therefore, the authors argue that informal activity may be as much associated with entrepreneurial dynamism as with any desire to avoid costly contract registration and social protection. However, the authors confirm there is no a priori reason for entrepreneurial activity to be unprotected. Consequently definitions of informality based on occupation and employer size seem the most arbitrary in practice even if conceptually well-founded.en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/03/6634942/defining-measuring-informal-sector
dc.identifier.doi10.1596/1813-9450-3866
dc.identifier.urihttps://hdl.handle.net/10986/8342
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 3866
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCENTRAL AMERICAN
dc.subjectCOLLECTIVE BARGAINING
dc.subjectCOLLEGE GRADUATES
dc.subjectCOMPETITIVE PRESSURES
dc.subjectCONDITIONS OF EMPLOYMENT
dc.subjectDISABILITY
dc.subjectDISMISSAL
dc.subjectDISMISSALS
dc.subjectDISPLACED WORKERS
dc.subjectDISPLACEMENT
dc.subjectDOMESTIC WORKERS
dc.subjectECONOMIC GROWTH
dc.subjectEDUCATIONAL ATTAINMENT
dc.subjectEMPLOYEE
dc.subjectEMPLOYERS
dc.subjectEMPLOYMENT CONTRACTS
dc.subjectEMPLOYMENT RELATIONSHIP
dc.subjectEMPLOYMENT STATUS
dc.subjectENTREPRENEURIAL ACTIVITY
dc.subjectFIRING
dc.subjectFIRING COSTS
dc.subjectFIRM SIZE
dc.subjectFLEXIBLE HOURS
dc.subjectFLEXIBLE HOURS OF WORK
dc.subjectFORMAL LABOR MARKET
dc.subjectHOURS OF WORK
dc.subjectHOUSEHOLD CHARACTERISTICS
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD SURVEY
dc.subjectHOUSEHOLD SURVEYS
dc.subjectILLEGAL EMPLOYMENT
dc.subjectILLITERACY
dc.subjectINFORMAL EMPLOYMENT
dc.subjectINFORMAL SECTOR
dc.subjectJOB SATISFACTION
dc.subjectJOBS
dc.subjectLABOR CONTRACT
dc.subjectLABOR MARKET
dc.subjectLABOR MARKET REGULATION
dc.subjectLABOR MARKET REGULATIONS
dc.subjectLABOR REGULATION
dc.subjectLEGAL STATUS
dc.subjectLITERATURE
dc.subjectMATERNITY LEAVE
dc.subjectMINIMUM WAGE
dc.subjectOCCUPATION
dc.subjectOCCUPATIONAL CLASSIFICATION
dc.subjectOCCUPATIONS
dc.subjectOVERTIME
dc.subjectPAPERS
dc.subjectPREVIOUS STUDIES
dc.subjectPRINCIPAL ALTERNATIVE
dc.subjectPRIVATE SECTOR
dc.subjectPROBIT REGRESSIONS
dc.subjectPUBLIC SECTOR EMPLOYEES
dc.subjectPUBLIC SECTOR EMPLOYMENT
dc.subjectPUBLIC SECTOR WORKERS
dc.subjectRESEARCHERS
dc.subjectSELFEMPLOYMENT
dc.subjectSENIORITY
dc.subjectSOCIAL PROTECTION
dc.subjectSOCIAL SECURITY
dc.subjectSTAFF
dc.subjectTEMPORARY WORKERS
dc.subjectTOTAL EMPLOYMENT
dc.subjectTURNOVER
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT RATES
dc.subjectUNIONIZATION
dc.subjectWAGE DIFFERENTIAL
dc.subjectWORK IN PROGRESS
dc.subjectWORKER
dc.subjectWORKERS
dc.subjectWORKING
dc.titleOn Defining and Measuring the Informal Sectoren
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleOn Defining And Measuring The Informal Sector
okr.date.doiregistration2025-04-10T10:15:42.867104Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2006/03/6634942/defining-measuring-informal-sector
okr.globalpracticeEducation
okr.globalpracticeSocial Protection and Labor
okr.guid940751468021241000
okr.identifier.doi10.1596/1813-9450-3866
okr.identifier.externaldocumentum000016406_20060303150551
okr.identifier.internaldocumentum6634942
okr.identifier.reportWPS3866
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/03/03/000016406_20060303150551/Rendered/PDF/wps3866.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryBrazil
okr.topicTertiary Education
okr.topicSocial Protections and Labor::Labor Management and Relations
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Labor Standards
okr.topicWork and Working Conditions
okr.topicEducation
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication2c308a64-886c-507e-98b9-54f74364d5c4
relation.isAuthorOfPublication.latestForDiscovery2c308a64-886c-507e-98b9-54f74364d5c4
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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