A3- [2021 - Dell Anno] - Theories and definitions of the informal economy A survey

 




ANALYSIS OF ARTICLE

[2021 Dell’Anno] presents a new review of the literature to better establish a general framework to allow the proposal of new policy measures. Informal Economy (IE) is heterogeneous in its nature, and [2021 Dell’Anno] proposes to review the literature on the several definitions of IE and a framework with several ways to theoretically explain informality.

This paper will be KEY to the literature review of my thesis.

 

 

SUMMARY OF ARTICLE (provides an overview of the Article, with copy & paste of contents, aiming to summarize its contents).

On Section 2, [2021 Dell’Anno] builds upon the ILO – ICLS (International Labour Organization, International Conference of Labour Statisticians) to propose a basic framework to define IE.

 



 

On Section 3, [2021 Dell’Anno] explores the several approaches to provide IE with a theoretical framework:

-          Neoclassical – with micro-econometric models in which rational agents operate informally because of a constrained maximization of this utility function and with competitive equilibrium models.

-          Macro models, such as MIMIC

-          Conceptual models

o   Dualist – considers the informal sector as an autonomous segment of the economy

o   Structuralist – informal activities are subordinated economic units (micro firms) and workers that serve to reduce input and labor costs

o   Legalist – micro-entrepreneurs that choose to operate informally to avoid costs, time and effort of formal registration

o   Voluntarist – focuses on intentional and rational choice of informal entrepreneurs to avoid regulations and taxations

o   Holistic – focus on the heterogeneous composition of the IE with various factors driving informality

 

 

 

 

 

 

 

 

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