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Shoe shine workers in Cairo, street vendors in Calcutta, badly-paid public officials driving their taxis at night in the streets of Moscow – this is informal employment: jobs or activities in the production and marketing of legal goods and services that are not regulated or protected by the state. Over half the non-agricultural jobs in developing and emerging economies come into this category. In some regions, sub-Saharan Africa and South Asia, for example, as many as  80 per cent of jobs are informal; in a few countries, it is even higher.

The informal sector deprives states of revenues and workers of social protection. It also, however, frequently constitutes the most dynamic part of the economy and creates massive employment.

Informal employment is ubiquous and growing. The financial crisis that began in 2008 has made the management of informal employment even more challenging.  Responding to this emerging challenge is critical, not only for the well being of millions of workers but also for social development. A new Development Centre study, "Is Informal Normal?", provides evidence for policy makers on how to deal with this issue of crucial importance for developing and developed countries alike.