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Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment

By on January 01, 2006

This chapter, written by WIEGO's Martha Chen is part of the volume, "Linking the Formal and Informal Economy". The concepts of formal and informal remain central to the theory and practice of development more than half a century after they were introduced into the debate. They help structure the way that statistical services collect data on the economies of developing countries, the development of theoretical and empirical analysis, and, most important, the formulation and implementation of policy. This volume brings together a significant new collection of studies on formality and informality in developing countries. The volume is multidisciplinary in nature, with contributions from anthropologists, economists, sociologists, and political scientists. It contains contributions from among the very best analysts in development studies. Between them the chapters argue for moving beyond the formal-informal dichotomy. Useful as it has proven to be, a more nuanced approach is needed in light of conceptual and empirical advances, and in light of the policy failures brought about by a characterization of the 'informal' as 'disorganized'. The wealth of empirical information in these studies, and in the literature more widely, can be used to develop guiding principles for intervention that are based on ground level reality.

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Citation Information

Chen, Martha A. Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment. Linking the Formal and Informal Economy: Concepts and Policies, , . Oxford University Press, 2006. Chen, M. A. (2006). Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment. Linking the Formal and Informal Economy: Concepts and Policies, , . Chen, Martha A. "Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment." Linking the Formal and Informal Economy: Concepts and Policies, Oxford University Press, 2006, .Chen Martha A. "Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment." Linking the Formal and Informal Economy: Concepts and Policies (2006). Chen, M A 2006, 'Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment', Linking the Formal and Informal Economy: Concepts and Policies, . Martha A Chen, 'Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment' (2006) Linking the Formal and Informal Economy: Concepts and Policies Chen M. A. Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment. Linking the Formal and Informal Economy: Concepts and Policies. 2006. Chen, Martha A. Rethinking the Informal Economy: Linkages with the Formal Economy and the Formal Regulatory Environment. Linking the Formal and Informal Economy: Concepts and Policies. 2006. , .

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WIEGO is at the forefront of developing statistics and research to help audiences understand the informal economy. Our library includes over two decades-worth of informal economy research, policy analysis, statistics and documentation of organizing efforts.

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