What is the Informal Economy?
The Informal Economy refers to the economic activities that are not regulated and are often not taxed. It includes those who work in small unregistered enterprises, both employers and employees, as well as self-employed persons who work in their own or family businesses.
The term informal sector was first used in the report of an ILO employment mission to Kenya in 1973. The informal sector was dismissed by many development economists in the early 1970s as "largely parasitic" engaged in "unskilled and obsolete activities" which made little contribution to the national economy.