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A Modern Guide to the Informal Economy

Paperback | 6 September 2024

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This Modern Guide presents a comprehensive synthesis of contemporary thought on the informal economy, which, as the author demonstrates - far from being a peripheral feature of the global economy - is a system in which the majority of the global workforce are employed and which has pervasive detrimental effects. Formalising it is therefore a priority for most governments.

Employing theoretical and empirical methodologies, Colin C. Williams explores the latest research on methods of understanding and measuring the informal economy in its various forms, and discusses the rationale behind its participants. Its rigorous discussion of the need to shift away from solely using tools that punish the practice and towards aligning social norms with the regulations of formal institutions is complemented by a rich analysis of how jobs and enterprises across the world can be encouraged to make the transition towards formalism. Incentives, education and reform are among the strategies advocated in this Modern Guide's compelling and lucid roadmap for the transition to formality.

An invaluable resource for policymakers involved in tax, social security and labour policies, belonging to both governments and supra-national institutions, the book will also be valuable for academics and researchers in sociology, economics and business studies, especially those with an interest in taxation, industrial relations, entrepreneurship and labour economics.

Industry Reviews

'Peerless and prolific, Professor Colin Williams has again produced an essential guide for anyone wanting a concise yet sophisticated introduction to contemporary issues in the "informal economy". With admirable clarity and precision, Professor Williams deftly explains the magnitude, characteristics and drivers of the informal economy. Nuanced assessments of theoretical and policy choices inform the "roadmap" this text provides to understanding such an integral feature of the global economy. Seasoned scholars and newcomers alike will find value in Professor William's latest contribution to this important topic.' -- Monder Ram, Aston University, UK
'An indispensable book to understanding one of the most important policy challenges of the 21st century: how to facilitate transition from the informal to the formal economy to ensure sustainable development and decent work. Professor Williams provides an intelligent, evidence-based and well-structured critical contribution to the knowledge of both the concept of informal economy and policy options for tackling the informal economy.' -- Frederic Lapeyre, International Labour Organization
'Colin William's book is a must read classic for anyone looking for an in depth understanding of the informal economy. . . the book nails the pulse of the modern informal system.' -- Anjula Gurtoo, Indian Institute of Science, India
'This book provides an excellent bridge between academia and policymakers by offering a synthesis of the latest state of research in the field of the informal economy, presented in an easy to understand and yet a comprehensive way. Critical insights for researchers and policymakers in the field of tax administration, labour and social security policies are provided.' -- Ioana Alexandra Horodnic, 'Alexandru Ioan Cuza' University of Ia?i, Romania

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