Title: THE FUNCTION OF THE URBAN INFORMAL SECTOR IN EMPLOYMENT: Evidence from Colombia 1984-2000
Abstract: The aim of this paper is to analyze function of informal sector in employment, its relationship to urban employment, with illustrative evidence from Colombia. The analysis is done for period 1984 - 2000, which includes phases of boom and economic crisis as well as implementation of neoliberal reforms to national development. The paper summarizes four competing approaches to conceptualization of informal sector, and describes their measurement strategies. It argues that elements of state regulation are fundamental whereas firm size should not be considered as a defining element. Subsequently, it analyzes how internal composition of informal sector evolved, considering elements of state regulation, firm size, and dynamism of economic activities. It examines function of informal sub-sectors in urban labor market, using indicators such as relative earnings and size, and a crude indicator of labor mobility. At least three sub-sectors conforming informal sector are identified: salaried workers of large and small firms, entrepreneurs and subsistence workers. It is argued that each sub-sector of informal sector responds in different ways to prevailing economic conditions. The subsistence sub-sector supports dualistic view, whereas other two are integrated to formal No dominant sub-sector permits broadrange generalizations about the informal sector.
Publication Year: 2002
Publication Date: 2002-04-15
Language: en
Type: preprint
Access and Citation
Cited By Count: 5
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot