Globalization and informal employment: An empirical assessment

This chapter sheds further light on the linkages between trade reforms, integration into the world economy and the size of the informal economy. It presents an empirical analysis based on a new database that regroups information on the incidence of informality and the size of the shadow economy. The chapter aims to clarify the multifaceted nature of the globalization process and its implications for labour markets in developing countries. It starts by describing the main questions that arise from the discussion in the previous chapters. It then provides an overview of the empirical material and the methodology used before presenting the results.