Informal Labour and Credit Markets: A Survey

This paper reviews the literature on the informal economy, focusing first on empirical findings and then on existing approaches to modelling informality within both partial and general equilibrium environments. Importance is given to labour and credit markets, since these tend to be most affected by informality. The phenomenon is particularly important in emerging and other developing economies, given their high degrees of informal labour and financial services and the implications these have for the effectiveness of Informal economy, labour market, search-matching models. [Working Paper No. 2011-94]. URL:[http://www.nipfp.org.in/newweb/sites/default/files/WP-2011_94.pdf].