Jump to ContentJump to Main Navigation
Personal Wealth from a Global Perspective$
Users without a subscription are not able to see the full content.

James B. Davies

Print publication date: 2008

Print ISBN-13: 9780199548880

Published to Oxford Scholarship Online: January 2009

DOI: 10.1093/acprof:oso/9780199548880.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in OSO for personal use (for details see www.oxfordscholarship.com/page/privacy-policy).date: 19 April 2019

The Informal Sector in Developing Countries: Output, Assets, and Employment

The Informal Sector in Developing Countries: Output, Assets, and Employment

(p.373) 18 The Informal Sector in Developing Countries: Output, Assets, and Employment
Personal Wealth from a Global Perspective

Sangeeta Pratap

Erwan Quintin

Oxford University Press

This study documents four key facts about informal economic activities: (1) the size of the informal sector varies greatly across nations; (2) this size is strongly correlated with economic development, the tax burden, and the rule of law; (3) the informal sector emphasizes small‐scale, self‐financed, and unskilled labour- intensive economic activities; and (4), while financial markets are generally segmented along formal/informal lines in developing nations, there is no compelling evidence that this is true for labour markets. The chapter reviews the existing theoretical literature on the informal sector and describe a simple model with a trade‐off between tax evasion and access to formal sources of outside finance that is consistent with much of the existing evidence. Finally, the study discusses the challenges associated with measuring informal sector assets.

Keywords:   informal economic activities, tax burden, rule of law, segmented labour markets, informal sector

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .