Defining and Measuring the Informal Economy

Here is an interesting topic for economic developers--defining and measuring the informal economy in various countries, including our own.

Recent estimates say that the informal economy in developing countries in 2000 was equivalent to 41% of their official GDP. In Zimbabwe, the figure was 60%. In Brazil and Turkey, around half of non-farm workers are in the informal sector. In OECD countries the share of the informal economy was lower, but far from negligible, at 18%.

So, how large is the informal economy in your community, region, or state?

For more information, go here.

Here are two studies on the topic that you might find interesting as well:

“Size and Measurement of the Informal Economy in 110 Countries Around the World”. World Bank Working Paper, July 2002.

“The Hidden Dangers of the Informal Economy”. McKinsey Quarterly, 2004, no 3.