Revue d'études sur les institutions et le développement
Volume 7, Numéro 2, Pages 94-107
2022-06-12
Policies Addressing The Formalisation Of Informality In North Africa: Issues And Outcomes
Authors : Adair Philippe .
Abstract
Abstract: According to standard definitions, the informal economy (or informality) includes three components, i.e. informal employment within the informal sector, the formal sector and households. Data sources prove disparate and statistical coverage remains poor in Algeria, Egypt, and Tunisia, as well as in Morocco. A threefold spectrum of theories addresses informality, dualism, structuralism and institutionalism. The persistence of informality translates into segmentation with respect to income gaps along the formal/informal divide, despite the mobility of workers on the labour market. Formalisation policies encapsulate conflicting issues and strategies as well as distinct methods. The moderate impact of formalisation policies proves more significant regarding the compliance of informal businesses than it extends social protection to informal workers, although enforced overall policies are more cost-effective than focused policies, due to economies of scale and spillover effects. JEL: E26, J46, O17
Keywords
businesses; ; employment; ; impact assessment; ; informal economy ; ; policies; ; segmentation
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