Problematizing the “informal sector”: 50 years of critique,clarification, qualification,and more critique

Since its coining in 1971, the concept of the “informal sector” has been used to draw scholarly, political, and philanthropic attention to hundreds of millions of workers who lack basic labor protections. But as the term proliferated, so too did its detractors. Critics claim that the label of “informal” homogenizes the world's poor and distorts understandings of the sources of and solutions to their economic woes. What are the origins of the concept's contradictory nature? What strategies have scholars used to increase the likelihood that it will be used to illuminate and uplift, rather than to distort and denigrate? This article analyzes how scholars have resignified and retheorized the informal economy in response to five conceptual challenges: stigmatization, definitional fuzziness, homogenization, an either/or fallacy, and the presumption of “formalization” as the solution. Such efforts have preserved the concept's analytic potency and political relevance. In the longer term, however, a true testament to the concept's value would be if it outlives its own utility; that is, if it mobilizes enough recognition and resources to the invisibilized majority of the world's workers that scholars and state bureaucrats no longer feel the need to lump them together under a misleading catchall label.     

Informal employment: Two contested policy issues

This article addresses two contested issues of crucial importance to policy, namely: formal labour regulations as a cause of informal employment, and so‐called “voluntary” informal employment. The authors provide theoretical overviews on both issues and an extensive survey of empirical studies on the effects of formal labour regulations on informal employment. The article closes with observations on the relevance of the ILO's four decent work objectives for informal employment and economic development, with particular emphasis on the significance of – and potential for – organizing workers in the informal economy.     

Good jobs and bad jobs for Indonesia's informal workers

In contrast to the majority of studies that have treated informal workers as a single homogeneous group, this article accounts for the possibility of “winners” and “losers” among informal workers. Applying unconditional quantile regressions to data from the Indonesian Family Life Survey, the authors are able to estimate the formal–informal wage gaps for different segments of the earnings distribution. Although the evidence confirms the existence of a substantial earnings penalty for many informal workers, there is also a group who earn roughly similar incomes to formal workers. The findings are consistent with Fields's (1990 and 2005) model of heterogeneous informal employment.     

Participation in formal and informal volunteering: Implications for volunteer recruitment

This study examines factors influencing “formal” volunteering (that is, to an organization) and “informal” volunteering (that is, volunteering carried out individually outside of an organizational context) and the relationship between these two activities. We hypothesize that formal and informal volunteering activities are positively interrelated but that they are shaped by different types of personal resources: involvement in social networks increases the likelihood of both types of volunteering, but human capital increases the likelihood of formal volunteering rather than informal. The bivariate probit regression results emanating from the Independent Sector's “Giving and Volunteering in the United States, 2001” survey are generally supportive of the hypotheses. The findings suggest that nonprofit and public organizations that involve volunteers consider the pool of informal volunteers as a fertile ground for recruitment and find ways to better utilize older Americans in formal volunteering. The results also suggest that volunteer recruitment through organizational membership may be an effective strategy.     

Conceptualisations of fatherhood and socio-contextual dynamics influencing father involvement in informal settlements in Durban,South Africa

Many men living in informal settlements are unemployed and many do not live with their children. Nevertheless, these men can play a critical role in their children’s lives. In this paper, we explore the extent to which fathers in informal settlements manage or aspire to do this. We explore how they appreciate the social and familial role of “the father” and how they seek to translate these ideas into actions. Findings are based on three FGDs and 19 IDIs with young men in two informal settlements in South Africa. In this setting, father involvement is predicated on financial provision, yet lack of economic opportunities for men condemns them to the undesirable status of “failed fathers.” Men’s involvement in childcare is contested with some men supporting father involvement that goes beyond financial provision. Notions of traditional masculinity, praise and recognition by community, and the view that looking after your own child is tantamount to looking after your own future, are factors that enhance father involvement. Unemployment or precarious work, alcohol abuse, gender ideologies, and maternal and cultural gatekeeping are socio-contextual dynamics that undermine father involvement. For interventions to be effective in promoting father involvement, they should address critical context-specific issues.     

Waste’s dominion: the gymnastics of value in informal markets*

Abstract

This paper examines sites of informal trade in Morocco, what the locals call joutiat (sing. joutia). It departs from the semantic and real-world politics of disposability (of objects and people), to unravel the underlying meanings of the joutia as a contested space. The joutia is a place where not only objects of value wait to be rediscovered, but also where invisible and socially underprivileged beings perpetually ransack heaps of trade articles to unmask a hidden gem. I provide an account of the social dynamics of abjection inside/outside the joutia, arresting the ambivalence of objects, which – as they keep vacillating between value and lack of it – turn into “treashure”. I use this neologism, which combines two antithetical terms (trash and treasure), to (a) put into question issues of visibility and invisibility in informal Moroccan enterprises, (b) crystallise the paradoxes of being and becoming inside and outside the market arena, (c) offer a profound reflection on the absurd nature of value in the informal landscapes of (non)random economy and (d) demonstrate that the forms of abjection inside the market have their origin elsewhere.     

Determinants of informal employment among working mothers in Mexico

Whether women's informal employment is an involuntary marginal condition or a preferred alternative to formal employment has generated intense debate in academic and policy circles, particularly in view of women's disproportionate representation in the informal economy. We analyzed detailed interviews with 136 working mothers in Mexico to gain a better understanding of the factors leading to informal employment, as well as the impact of this work on these women and their families. Our results show that informal employment was not a choice for many women who entered the informal labor market due to human capital constraints and family responsibilities. Additionally, women commonly faced challenges in meeting the needs of both their employers and their families and earning adequate income. We suggest policy options to address the factors constraining women's employment opportunities and improve the situation of those women already working in the informal economy.     

Economic Restructuring,Gender, and Informal Work: A Case Study of a Rural County1

Abstract This paper combines three issues that have previously been considered separately: economic restructuring, gender, and participation in the informal economy. Drawing on two complementary data sets of interviews with the residents of a rural county, the paper first suggests that the participation in the informal economy is extensive. The second major finding is that households whose members have held on to “good” work in the formal economy participate in the informal economy in a different way than do households whose members are less fortunate. Third, the paper demonstrates that participation in the informal economy is highly differentiated by gender. Finally the intersections among location in the formal economy, gender, and informal economic activities are discussed.     

African American Informal Support Networks

Abstract

This study examined African American informal support network functioning utilizing Vaux's (1998) reciprocal exchange model. Ten African American caregivers of relatives with severe mental illness and their main informal helpers were interviewed using a semi-structured questionnaire. In 8 of the 10 African American families interviewed, one close relative, called a “main supporter,” assumed major responsibility, comparable to that of the primary caregiver, for care and supervision of the family member with mental illness. Main supporters felt that their family helper role, although stressful at times, gave meaning and purpose to their lives. Five main supporter-primary caregiver pairs formed 'joint households' to share economic and human resources and to facilitate caregiving duties. Social work intervention for caregiving families should provide assistance to both primary caregivers and their informal supporters, particularly main supporters.     

Irregular Migration and Informal Economy in Southern and Central‐Eastern Europe: Breaking the Vicious Cycle?

The flexible and cheap labour that European “post‐industrial” economies are in need of is often facilitated by undeclared labour. The undocumented migrant, from his/her part, relatively easily finds work that suits his ‐‐ at least initial ‐‐ plans. What lies behind this nexus between irregular migration and informal economy? To what extent can this nexus be attributed to the structural features of the so‐called “secondary”, as opposed to “primary”, labour market? And how does migration policy correlate with this economic context and lead to the entrapment of migrants in irregularity? Finally, can this vicious cycle of interests and life‐strategies be broken and what does the experience of the migrants indicate in this respect? This paper addresses these questions via an exploration of the grounds upon which irregular migration and the shadow economy complement each other in southern Europe (SE) and central and Eastern Europe (CEE) (two regions at different points in the migration cycle). In doing so, the dynamic character of the nexus between informal economy and irregular migration will come to the fore, and the abstract identity of the “average” undocumented migrant will be deconstructed.     

Out of the shadows: Classifying economies by the extent and nature of employment in the informal economy

Given the prevalence of informality, this article proposes a typology for classifying countries by the extent and nature of employment in the informal economy, rather than by the composition of their formal economies. The author analyses ILO data on employment in the informal economy in 36 developing countries, and shows that there is a significant correlation between cross‐national variations in the degree and intensity of informalization and cross‐national variations in social and economic indicators such as levels of GNP per capita, corruption, poverty, taxation and social contributions. The article concludes by discussing implications for theory and policy.     

Living Arrangements and Informal Support for the Elderly

ABSTRACT

A network of informal care and support provided by family, friends and neighbors often forms the basis for elderly care. Changes in the structure of Chinese family alter this supportive function, and changes in traditional values affect the nature of the network and support provided. This is especially so in modernized Hong Kong where the traditional role of the family and especially children's duty of care for their aged parents (“filial piety”) may be weakening. This proposition was investigated by a qualitative study involving in-depth interviews with 50 older persons in a modern new town (Tuen Mun) in Hong Kong. Living arrangements, geographical proximity and the quality of relationships between potential caregivers and the elderly affected needs for and provision of informal support. Traditional Confucian filial piety is undergoing modification, perhaps erosion, implying ongoing changes in inter-generational relations in this modernized Asian society.     

The Indian informal sector: The impact of globalization and reform

Globalization and economic reforms typically affect the formal sector, the informal sector existing outside regulation. Yet, numerous links between them mean the informal sector is variously affected. Traditionally, the model used to explain the impact of these forces was labour market segmentation and migration: workers laid off in the formal sector increase informal labour supply, leading to wage decline and increased poverty. The author examines whether this pattern applies in India following economic reforms in the 1990s, and finds a more appropriate model, driven by expansion both in labour supply and in demand, through outsourcing, skill transfers and new enterprises.     

Informal Caregiving and the Politics of Policy Drift in the United States

Informal caregivers play an increasingly important role in caring for aging Americans. Yet existing social policies that could support informal caregiving have experienced “policy drift,” a failure to adapt to social risks that develop after policies are initially enacted. This article examines policy makers’ success at updating seven major policies to address caregiver needs. It draws on an original data set of legislation in this area introduced between 1991 and 2006 (n = 96). Findings indicate that drift is more likely when policy updates are costly, lack support from members of majority parties in the House and Senate, and fail to generate bipartisan support.     

Caregiving and Volunteering Among Older People in Sweden—Prevalence and Profiles

This study examines the role of older people in Swedish society by exploring the prevalence of their informal caregiving and volunteering and by analyzing the profiles of these contributors of unpaid work. Data were collected by means of telephone interviews in a Swedish representative survey conducted in 2005. Our analysis reveals three distinct profiles of people involved in unpaid activities. One of these consists of those involved both in informal helpgiving and volunteering, a group that has been labeled “super helpers” or “doers” in earlier research. It is important for social policy planners to recognize these groups of older people and better understand the dynamics of their unpaid work in order to ascertain whether they might need support as providers and to enhance their well-being. There does not seem to be any simple contradiction between the parallel existence of a universal welfare model of the Swedish kind and an extensive civil society in which older people play important roles as active citizens.     

Reconsidering the Division of Household Labor: Incorporating Volunteer Work and Informal Support

The gendered division of household labor is more multifaceted than the allocation of paid work and domestic work. People also engage in volunteer work and informal support. I investigate the applicability of household labor allocation theories—specifically the time constraints, economic, and “doing gender” perspectives—to all unpaid work. I analyze the 1997 Australian Time Use Survey diaries of 1,797 married couples using logistic, ordinary least squares, and seemingly unrelated regressions. Analyses show that volunteer work and support work are substantial expenditures associated with paid work and housework, but they do not create a “third shift.” Volunteer work and support work are part of the gendered household labor allocation process determined, in part, by time constraints and by gender.     

Informality in a micro economy: Measurement,composition and consequences

This article measures the extent of – and unrecorded income generated by – informal employment in a micro economy characterized by poor governance. Household survey and census data are used to estimate the number of informal workers in Northern Cyprus and analyse the characteristics of informal employment, for the period 2004–11. Informal workers are mostly comprised of citizens with no social security registration, illegally employed immigrants or second‐job holders who have not registered their second jobs. In terms of value added, the estimated size of the informal economy is 9.1 per cent and 12.2 per cent of GNP in 2006 and 2011, respectively.     

The Perspectives of Older Greek-Australians Toward Changes in the Nature of Family Support: Implications for Family Care Policies

Internationally, public policies encourage “aging in place,” and the majority of older Australians requiring care in the community receive informal care, supplemented by publicly subsidized formal services. The effect of contemporary social changes on informal care in aging migrant communities is poorly understood. This articles explores the perceptions of older Greek-Australians toward changes in the nature of family support. Bicultural and bilingual researchers carried out in-depth interviews (n?=?27) and five focus groups (n?=?63 total participants) with older Greek-Australians in modern Greek. While “cultures of care” remain among Greek-Australian families, the means for a family to assist have shifted, and these compromises are met with considerable powerlessness among older Greek-Australians. Implications for policy include the need to better involve older migrants and their families in decisions about their care needs, potentially involving consumer-directed care models. Service providers may also need to adopt the use of new technologies to communicate with increasingly time-pressured family members.     

Mind the Gap: The Commodification of Corporate Social Responsibility

This article, based on two years of participant observation, in‐depth interviews, and informal exchanges, offers an ethnographic account of a nonprofit organization that promotes the idea of corporate social responsibility. It follows the ways and means by which midlevel corporate executives are initiated into the universe of “corporate citizenship,” learning to deploy terms such as “stakeholders,” “brand loyalty,” “social investment,” and “community empowerment.” Through an analysis of workshops, lectures, and ceremonial events, I show how the idea of social responsibility is transformed into a managerial tool, designed to enhance employee loyalty and to improve brand loyalty. From a constructivist sociological perspective, I also show that the idea of corporate social responsibility, when framed and advocated by a corporate‐friendly organization, fits the neoliberal emphasis on corporate self‐regulation.     

Lightning Rods in the Local Moral Economy: Debating Unauthorized Migrants' Deservingness in Israel

Localized debates about who unauthorized migrants are and what they do, or do not, deserve unfold in a culturally specific register that is deeply charged with emotion and moral valuation. Structuring such debates are vernacular discursive frames that emerge from, and reflect, a common “local moral economy.” Taking Israel as case study, this article examines six elements of the country's local moral economy – biopolitical logic, historical memory, political emotion, popularized religion, an ideology of “fruitful multiplication,” and hasbara (“public diplomacy”/propaganda) – and explores their impact on public debates about unauthorized and irregular forms of migration. Here, as elsewhere, conventionalized distinctions that frame much migration scholarship – e.g. “economic” vs. “political” migrants, “migrant workers” vs. “refugees,” even the terms “authorized” and “unauthorized” themselves – bear but limited salience. Migration researchers who hope to influence local policy debates must recognize the weight and influence of local moral economies, and the chasms that divide vernacular from conventionalized frames. Achieving this sort of nuanced understanding is, at root, an ethnographic challenge.