Informality: Causes, Consequences, and Policy Responses

Charles H. Dyson School of Applied Economics and Management, Working Paper 2014-18

From the introduction: "What exactly is informality and what are its magnitudes and trends?  What are the causes of informality and why is it not decreasing as predicted by standard theories of development? What are the consequences for inclusive economic growth of a large and increasing informal sector?  What are feasible and desirable policy responses to informality?  These are the questions which motivate this broad based overview of informality.  The questions will be addressed based on recent and ongoing research on India and globally."