Theories and definitions of the informal economy: A survey

Roberto Dell'Anno

doi:10.1111/joes.12487

journal article Open Access Dec 07, 2021

Theories and definitions of the informal economy: A survey

Roberto Dell'Anno

Journal of Economic Surveys Vol. 36 No. 5 pp. 1610-1643 · Wiley

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Abstract

AbstractThis paper surveys the literature on the definitions and theories of the informal economy (IE). It outlines the main differences in the definitional approaches of informality and proposes a definition for the IE that may be consistent with measurement and policy. The literature review distinguishes three, not mutually exclusive, approaches to the IE: the “neoclassical,” the “macro‐econometric,” and the “conceptual” perspectives. I conclude the survey by outlining a framework that points out the main differences and similarities among the schools of thought on the nature of the IE. From a normative perspective, a leading recommendation emerges: a “one‐size‐fits‐all” policy response is inadequate to deal with the heterogeneous nature of the IE. Policy measures should be tailored around the distinct segments of the IE grounded in terms of characteristics, contexts, and needs of the informal units.

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Details

Published: Dec 07, 2021
Vol/Issue: 36(5)
Pages: 1610-1643
License: View

Authors

R

Roberto Dell'Anno

Department of Economics and Statistics and CELPE University of Salerno Fisciano SA Italy

Cite This Article

Roberto Dell'Anno (2021). Theories and definitions of the informal economy: A survey. Journal of Economic Surveys, 36(5), 1610-1643. https://doi.org/10.1111/joes.12487

Theories and definitions of the informal economy: A survey

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