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Informal Sectors

Is it time we shifted our attention and research to the informal sector’s firm size?

Mohammad Amin's picture

Looking at the literature on informality, one thing that stands out is the small size of the informal firms. In fact, firm-size is one of the criteria used by ILO and individual researchers to draw the line between formal and informal firms. Many informal firms, however defined, are operated by the owner herself or himself and without any other employees, with few having more than five employees.