The Informal Sector in Developed and Less Developed Countries: A Literature Survey

Posted: 18 Jan 2005

See all articles by Klarita Gërxhani

Klarita Gërxhani

University of Amsterdam - Faculty of Economics and Business (FEB); University of Amsterdam - Amsterdam Institute for Social Science Research (AISSR); University of Amsterdam - Amsterdam Institute for Advanced Labour Studies (AIAS)

Abstract

The main goal of this study is two-fold: (1) to provide a general overview of the contributions to the literature on the informal sector, with a special focus on the Public Choice approach; and (2) to compare these contributions across two institutionally different types of countries: developed and less developed (developing and transition) countries. The paper focuses on the criteria used to define the informal sector, the relationship between the formal and informal economy, tax evasion, and Public Choice analysis. It is stressed throughout this paper that the distinction between the two types of countries is of key importance.

Keywords: Formal and informal sectors, tax evasion, public choice

JEL Classification: H11, H26, O17

Suggested Citation

Gërxhani, Klarita, The Informal Sector in Developed and Less Developed Countries: A Literature Survey. Public Choice, Vol. 120, No. 3-4, pp. 267-300, 2004. Available at SSRN: https://ssrn.com/abstract=650164

Klarita Gërxhani (Contact Author)

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

Oudezijds Achterburgwal 185
Amsterdam, 1012 DK
Netherlands

HOME PAGE: http://home.medewerker.uva.nl/k.gerxhani/

University of Amsterdam - Amsterdam Institute for Social Science Research (AISSR) ( email )

Oudezijds Achterburgwal 185
Amsterdam, 1012 DK
Netherlands

HOME PAGE: http://home.medewerker.uva.nl/k.gerxhani/

University of Amsterdam - Amsterdam Institute for Advanced Labour Studies (AIAS)

Amsterdam
Netherlands

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