Editing Informal economy (section)

==Definition==
[[File:Ice Cream Vendor in Street - San Cristobal de las Casas - Chiapas - Mexico (15621639916).jpg|thumb|left|Ice cream street vendor in [[Mexico]]]]
The original use of the term 'informal sector' is attributed to the economic development model put forward in 1955 by [[W. Arthur Lewis]], used to describe employment or livelihood generation primarily within the [[developing world]]. It was used to describe a type of employment that was viewed as falling outside of the [[Industrial sector|modern industrial sector]].<ref>{{cite book |last=Lewis|first=Arthur W.|title=The Theory of Economic Growth|url=https://archive.org/details/theoryofeconomic0000lewi|url-access=registration|year=1955|publisher=Allen and Unwin|location=London}}</ref> 
An alternative definition from 2007 uses [[job security]] as the measure of formality, defining participants in the informal economy as those "who do not have employment security, work security and social security".<ref>{{cite book |title=Report on conditions of work and promotion of livelihoods in the unorganised sector|year=2007|publisher=National Commission for Enterprises in the Unorganised Sector|location=New Delhi}}</ref> While both of these definitions imply a lack of choice or agency in involvement with the informal economy, participation may also be driven by a wish to avoid regulation or taxation. This may manifest as [[unreported employment]], hidden from the state for tax, social security or labour law purposes, but legal in all other aspects.<ref>{{cite book |last=Williams|first=Colin C.|title=A Commodified World?: Mapping the limits of capitalism|year=2005|publisher=Zed Books|location=London|pages=73, 74}}</ref>
In 2016 Edgar L. Feige proposed a taxonomy for describing unobserved economies including the informal economy as being characterized by some form of "non-compliant behavior with an institutional set of rules".<ref>{{Cite journal|title = Reflections on the Meaning and Measurement of Unobserved Economies: What do we really know about the "Shadow Economy"?|last = Feige|first = Edgar L.|date = 2016|journal = Journal of Tax Administration | issue = 30/1}}</ref> He argues that circumvention of labor market regulations specifying minimum wages, working conditions, social security, [[unemployment]] and disability benefits gives rise to an informal economy, which deprives some workers of deserved benefits while conveying undeserved benefits to others.

The term is also useful in describing and accounting for [[Housing#informal housing|forms of shelter]] or living arrangements that are similarly unlawful, unregulated, or not afforded protection of the state. 'Informal economy' is increasingly{{when|date=April 2021}} replacing 'informal sector' as the preferred descriptor for this activity.<ref name="www.rrojasdatabank.info"/>

Informality, both in housing and livelihood generation has historically been seen as a social ill, and described either in terms of what participant's lack, or wish to avoid. In 2009, the Dutch sociologist [[Saskia Sassen]] viewed the new 'informal' sector as the product and driver of advanced capitalism and the site of the most entrepreneurial aspects of the urban economy, led by creative professionals such as artists, architects, designers and software developers.<ref>{{cite book |title=Dharavi: documenting informalities|year=2009|publisher=Academic Foundation|location=Delhi|editor=Jonatan Habib Engqvist and Maria Lantz}}</ref> While this manifestation of the informal sector remains largely a feature of developed countries, increasingly systems are emerging to facilitate similarly qualified people in developing countries to participate.<ref>{{cite news |last=Wilson|first=David|title=Jobs Giant: How Matt Barrie Build a Global Empire|url=http://www.theage.com.au/small-business/entrepreneur/jobs-giant-how-matt-barrie-built-a-global-empire-20120209-1rmuf.html|access-date=20 March 2012|newspaper=The Age|date=9 February 2012}}</ref>