Work and Wellbeing in Informal Economies: The Regulative Roles of Institutions of Identity and the State

SummaryThe larger part of the economy in most developing countries is outside the regulative control of the state. When defined in this way, it has two types of expression: first, self-employment (with some wage-work) in unregistered or unincorporated small enterprises; second, unregistered and unregulated activity and workers inside and around large registered organizations such as firms, public sector enterprises, and the state itself. This paper reviews the literature, mainly but not exclusively from India, with three objectives. First, it questions what brings order to such economic activity and how economic and social insecurity is instituted. Second, it examines the counter intuitive proposition that social security rights are de facto, if not de jure, dependent upon work rights. Third, it explores the dynamics of, and responses to, informalization.