Informalization, Economic Growth and the Challenge of Creating Viable Labor Standards in Developing Countries

PERI Working Paper No. 60

25 Pages Posted: 8 Sep 2003

See all articles by James Heintz

James Heintz

University of Massachusetts Amherst - Department of Political Science

Robert Pollin

University of Massachusetts at Amherst - College of Social and Behavioral Sciences - Department of Economics

Date Written: June 2003

Abstract

Over recent decades, there has been the substantial rise in the proportion of people engaged in what is termed informal employment, generating a broad trend toward "informalization" of labor market conditions in developing countries, even when economic growth is proceeding. We consider the relationship between the rise of informalization and the corresponding ascendancy of neoliberal policies in developing countries, focusing in particular on how the decline in average per capita GDP growth associated with neoliberalism has fostered informalization. We then explore policy measures for raising the proportion of decent jobs with core social protections in developing countries - which means, as we argue, reversing the process of informalization. We examine policy measures in two areas: raising the rate of economic growth and improving the regulation of labor markets.

Keywords: informal economy, employment, informalization, macroeconomics, economic growth, labor standards

JEL Classification: O11, O17, J8

Suggested Citation

Heintz, James and Pollin, Robert, Informalization, Economic Growth and the Challenge of Creating Viable Labor Standards in Developing Countries (June 2003). PERI Working Paper No. 60. Available at SSRN: https://ssrn.com/abstract=427683 or http://dx.doi.org/10.2139/ssrn.427683

James Heintz (Contact Author)

University of Massachusetts Amherst - Department of Political Science ( email )

Thompson Hall
Amherst, MA 01003
United States

Robert Pollin

University of Massachusetts at Amherst - College of Social and Behavioral Sciences - Department of Economics ( email )

940 Thompson Hall
Amherst, MA 01003
United States
413-577-0126 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
485
Abstract Views
2,295
rank
57,635
PlumX Metrics