Transcription of CHAPTER 1 The Informal Sector: What Is It, Why Do We Care ...
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CHAPTER 1 The Informal Sector: What Is It, Why Do We Care ...
21 CHAPTER 1 The Informal sector : what Is It,Why do we Care, and HowDo We Measure It?SUMMARY:This CHAPTER seeks to unpack our understanding of the terminformality,why we may care about it, andwhat dynamics may be driving its elements. The number of phenomena it encompasses and the limitations of its measuresare manifold, dictating caution in employing the term. Yet two stylized facts remain: First, however measured, Informal -ity is high in Latin America, although not obviously so for the region s level of development; and it remains an importantphenomenon. Second, in several countries it has experienced striking increases over the last decades. Whatever adverse reg-ulatory, poverty, growth, or social morale implications informality may have, they have become more relevant with urban traditionalsector, and so on. These termsbeggar analysis by assuming what has to be demon-strated (Hart 1973, p. 68).With this, Hart cautions us against inquiry with exces-sively well-informed ideas of what we may , the accumulation of rich data sets over thelast decades has cast progressively more light on the realmof the Informal , permitting us to document the greatheterogeneity of actors and their raz n de ser.
21 CHAPTER 1 The Informal Sector: What Is It, Why Do We Care, and How Do We Measure It? SUMMARY: This chapter seeks to unpack our understanding of the term informality, why we may care about it, and what dynamics may be driving its elements. The number of phenomena it encompasses and the limitations of its measures
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