The Informal Economy: Measures, Causes, and Consequences provides a
comprehensive account of the economics of informality through the
lenses of various economic perspectives. Although informal economic
activity is widespread all around the world, many issues around its
nature and consequences remain largely under-explored or
unresolved. Most importantly, the evidence presented in the
existing literature on informality has failed to generate a
consensus on the measurements, causes, and effects of the informal
sector among researchers. Most, if not all, of the empirical
results are inconclusive or dependent on the nature of the dataset
used in the analysis. This book aims to address that gap by
exploring different definitions and measures of the informal
economy, including different perspectives, then subjecting these
measures to a battery of empirical tests to examine the
determinants and effects of informality. Through this analysis and
an extensive review of the literature, the book explores many of
the economic, political, and social factors of the informal economy
including the relationship between informality and the tax burden,
tax enforcement, and institutional quality. This key text makes for
compulsive reading to scholars and students interested in the
informal or shadow economy.
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