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    Informal Economy: Grounded Theories: PMD 307 - International Labor Laws Professor

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    LenyBarroga
    The document discusses theories related to informal economies. It describes how Keith Hart first coined the term "informal economy" to refer to those who earn incomes outside the formal system out of necessity. It also discusses legitimacy theory, where informal activities are considered legitimate if they become an accepted norm. The International Labor Organization describes the informal economy as involving activities that are illegal but have legal objectives. The document addresses some concerns governments have with informal economies, such as negative impacts on growth, incomplete social program coverage, and undermining of laws and order.

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    Informal Economy: Grounded Theories: PMD 307 - International Labor Laws Professor

    Uploaded by

    LenyBarroga
    7 views7 pages
    The document discusses theories related to informal economies. It describes how Keith Hart first coined the term "informal economy" to refer to those who earn incomes outside the formal system out of necessity. It also discusses legitimacy theory, where informal activities are considered legitimate if they become an accepted norm. The International Labor Organization describes the informal economy as involving activities that are illegal but have legal objectives. The document addresses some concerns governments have with informal economies, such as negative impacts on growth, incomplete social program coverage, and undermining of laws and order.

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    The document discusses theories related to informal economies. It describes how Keith Hart first coined the term "informal economy" to refer to those who earn incomes outside the formal system out of necessity. It also discusses legitimacy theory, where informal activities are considered legitimate if they become an accepted norm. The International Labor Organization describes the informal economy as involving activities that are illegal but have legal objectives. The document addresses some concerns governments have with informal economies, such as negative impacts on growth, incomplete social program coverage, and undermining of laws and order.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    7 views7 pages

    Informal Economy: Grounded Theories: PMD 307 - International Labor Laws Professor

    Uploaded by

    LenyBarroga
    The document discusses theories related to informal economies. It describes how Keith Hart first coined the term "informal economy" to refer to those who earn incomes outside the formal system out of necessity. It also discusses legitimacy theory, where informal activities are considered legitimate if they become an accepted norm. The International Labor Organization describes the informal economy as involving activities that are illegal but have legal objectives. The document addresses some concerns governments have with informal economies, such as negative impacts on growth, incomplete social program coverage, and undermining of laws and order.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    Informal Economy: Grounded

    Theories
    Reference:
    Swanson, L., Bruni – Bossio, V. (2018). A Righteous
    Undocumented Economy. Retrieved from
    https://link.springer.com/article/10.1007/s10551-018-3878-2

    PMD 307 – International Labor Laws


    Dr. Delia Ayano
    Professor

    Illeyt R. Silva
    PhD Student
    Informal Economy: Its Concept
    Refer to economies where activities involved are
    deemed non compliant

    A system based on despicable reasons

    But,
    Informality is a multidimensional continuum (De
    Castro et al, 2014)
    Grounded Theories
    Keith Hart (1973) coined the term Informal Economy where he
    explained that;
    Informal Economies where those who had been unsuccessful
    at earning adequate incomes in the formal system

    Community based
    participatory action presented notions on;

    1. Unavailability of information (when associated with the


    formal economy)
    2. Absence of documentation results occasional earnings
    Legitimacy Theory (Suchman, 1995)

    Informal activities are considered legitimate


    because it becomes an accepted norm and
    practice

    The International Labor Organization (ILO)


    describes the informal economy as activities
    considered illegal but has legal objectives.
    Plight of Labor in Informal Economies
    What concerns government about this frugal
    Innovation?

    - Potential negative impact on competitiveness and


    growth
    - Incomplete coverage of formal social programs
    - Undermining social cohesion and law and order
    - Fiscal losses
    Implications…
    Informal economy as “grey” “shadow” resorts to
    employing people under conditions of labor
    malpractices that does not conform with the
    laws;
    - Basic and competitive pay
    - Access to social service and security of tenure
    - Occupational and safety regulations

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