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The rise of the dual formal-informal labour markets and some of the possible challenges an informal-formal imbalance may cause to both emerging and developed economies


Dr. Tamaro J. Green

TJG News:

2021-04-26 23:10:50 viewed: 657


Portoa, Eliab, and Tealdi (2017) explained that the informal labour market accounts for 10% to 27% of GDP and 1.8 billion jobs worldwide.  Staneva and Arabsheibani (2014) explained informal employment as employment producing legal goods and services but lacking one or more legal requirement associated with employment.  Staneva and Arabsheibani (2014) suggested further research in income differences between formal and informal labour and policies for reducing informal labour.  Dual labour markets of formal and informal employment present challenges to accurately assess employment levels, policy compliance, and social protections.  A number of studies evaluated dual labor markets in individual countries.  Bossler, Gürtzgen, Kubis, Küfner, and Lochner (2020) attempted to identify microdata of labour market demand through a survey on vacancies and hiring procedures.  Stijepic (2021) measured the international influences of skills, education, and social trust and the effects on unemployment levels.  The challenge of collecting and evaluating data of informal labour markets increases the complexity of identifying solutions to reduce the difficulties these markets cause.  The challenge is even greater when multinational corporations perform labour operations across countries.  The rise of informal labour markets demonstrates their resilience to normal practices for labour.





Bossler, M., Gürtzgen, N., Kubis, A., Küfner, B., & Lochner, B. (2020). The IAB Job Vacancy Survey: Design and research potential. Journal for Labour Market Research, 54(1), 13. doi:10.1186/s12651-020-00278-6

Portoa, E. D., Eliab, L., & Tealdi, C. (2017). Informal work in a flexible labour market. Oxford Economic Papers, 69(1), 143–164.

Staneva, A. V., & Arabsheibani, G. R. (2014). Is there an informal employment wage premium? Evidence from Tajikistan. IZA Journal of Labor & Development, 3(1), 1. doi:10.1186/2193-9020-3-1

Stijepic, D. (2021). A cross-country study of skills and unemployment flows. Journal for Labour Market Research, 55(1), 9. doi:10.1186/s12651-021-00289-x



Dr. Tamaro Green is a computer science researcher and the founder of TJG Web Services.  TJG Web Services, LLC is a consulting firm in the field of information technology.  Dr. Green writes on topics of privacy, security, and ethics in information technology and computer science.

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