|Transport (at Zocalo)|
|Mexico upside down|
The informal sector is economic activity that is neither taxed nor monitored by a government, and is not included in that government's Gross National Product (GNP), as opposed to a formal economy. Examples are barter and gift economy.
Although the informal economy is often associated with developing countries, where up to 60% of the labour force (with as much 40% of GDP) works, all economic systems contain an informal economy in some proportion. The term informal sector was used in many earlier studies, and has been mostly replaced in more recent studies which use the newer term.
The English idioms under the table and off the books typically refer to this type of economy. The term black market refers to a specific subset of the informal economy in which contraband is traded; where contraband may be strictly or informally defined.
Given the complexity of the phenomenon, the simplest definition of informal economic activity might be: any exchange of goods or services involving economic value in which the act escapes regulation of similar satchel acts.
In developing countries, the largest part of informal work, around 70%, is self-employed, in developed countries, wage employment predominates. The majority of informal economy workers are women. Policies and developments affecting the informal economy have thus a distinctly gendered effect.
Make your blog carbon neutral! For free!
Being part of the initiative “My blog is carbon neutral” is an active contribution to help the environment!
Make it happen - make it green!
“My blog is Carbon Neutral” is an initiative, originally started in Germany by the “Make it green” programme, that has the goal to reduce carbon dioxide emissions. We plant a tree for your blog and thereby neutralise your blog’s carbon footprint for the next 50 years! Everyone can make a small contribution to the environment. Every tree counts!