Hidden Potential: Rethinking Informality in South Asia

Informality remains widespread in South Asia despite decades of economic growth. The

low earnings and high vulnerability in the informal sector make this a major development

issue for the region. Yet, there is no consensus on its causes and consequences, with the

debate polarized between a view that informality is a problem of regulatory evasion and

should be eradicated, and another that equates informality with economic exclusion.

Recent advances in analyzing informality as the outcome of firm ...