20 Informal Sector Flashcards
parallel market, hidden economy, invisible economy, shadow economy, submerged economy, underground economy
informal sector
independent, self-employed producers/distributors
informal sector
operate with very little capital
informal sector
low lvl. of technology and skills
informal sector
unregistered, unrecorded, unregulated
informal sector
not covered by country’s labor laws and protections
informal sector
why is there an informal sector?
- uneven economic development
- lack of willingness to comply with the law
- ineffective law implementation
less progressive areas
uneven economic development
no permit
lack of willingness to comply with the law
importance of informal sector
- helps in production
- employment generation
components of informal sector
- not employed in formal sector
- informal employment in formal sector
- small scale
- medium tier
- homeworker
- black market
unregistered company/workers, not legal entity, disorganized/few workers
not employed in formal sector
failure to declare occupation of workers, insufficient hours/wage compared to what is declared
informal employment in formal sector
vendors, pedicab driver
small scale
food kiosk/restaurant, sari-sari store
medium-tier
online business/job, home selling
homeworker
drug/human trafficking, smuggling, POGO
black market
problems of informal sector
- economic issues
- illegal trade
- wildlife poaching
- wildlife trafficking
- exploitation and abuse
economic issues
- non-payment of taxes
- unregulated
- not checked for safety
illegal trade
- human body parts
- counterfeit products
wildlife poaching
illegal hunting/killing/trapping of protected animals/plants
wildlife trafficking
illegal trade, collection
exploitation and abuse
- child labor
- human trafficking
mentally, physically, socially, morally dangerous to children; compromise life/school
child labor
