What is it about?

The informal economy accounts for the bulk of employment in many emerging economies. Regulation theory suggests that all economic activity is characterized by a complex combination of formal and informal regulation. Looking at the case of Mozambique, this article explores the pressures towards and against formalization, and the forms regulation can take, drawing on qualitative research based on in-depth elite interviews and observation.

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Why is it important?

The findings highlight how the State’s role in promoting formalization of the informal economy is ambivalent; its approach incorporates both “progressive” elements, which focus on the modernization of regulations and institutions, and “conservative” elements, which inhibit this process of change.

Perspectives

Evaluates the impact of institutions on the formalisation of the informal economy

Professor Colin C Williams
University of Sheffield

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This page is a summary of: Pressures towards and against formalization: Regulation and informal employment in Mozambique, International Labour Review, September 2015, Wiley, DOI: 10.1111/j.1564-913x.2014.00014.x.
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