Informal Sectors

DISCUSSION PAPER SERIES

IZA DP No. 2473

On Defining and Measuring the Informal Sector

Andrew Henley

G. Reza Arabsheibani

Francisco G. Carneiro

November 2006

Forschungsinstitut

zur Zukunft der Arbeit

Institute for the Study

of Labor

On Defining and Measuring the

Informal Sector

Andrew Henley

University of Wales Swansea

G. Reza Arabsheibani

University of Wales Swansea,

WELMERC and IZA Bonn

Francisco G. Carneiro

World Bank and Universidade Catolica de Brasilia

Discussion Paper No. 2473

November 2006

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IZA Discussion Paper No. 2473

November 2006

ABSTRACT

On Defining and Measuring the Informal Sector*

A range of alternative empirical definitions of informal activity have been employed in the

literature. Choice of definition...