The recent phenomenal intensification of the informal economy and the rising interaction and interdependence of the formal and informal sectors have led to a growing interest in studies of the informal economy among researchers and policy-makers. The terms ‘informal sector1 and ‘informal economy’ are used interchangeably to denote the segment of the economy and labour market that has absorbed significant numbers of job-seekers and unemployed workers outside government regulations and formal systems of labour and social protection. Existing literature on the informal economy shows that there is no standardised conceptual framework wrapping the subject. Policy responses to the informal economy surveys have been able to untie some of the variables that undermine informal sector mainstreaming. The surveys have also identified interesting issues for further enquiry.
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