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1. Do informal economies always prove detrimental to the environment? How can the informal sector lessen environmental degradation?
2. Why does the informal sector exist? Why does it continue to exist and grow even more when a country is in recession?
1. Do informal economies always prove detrimental to the environment? How can the informal sector lessen environmental degradation?
2. Why does the informal sector exist? Why does it continue to exist and grow even more when a country is in recession?
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Answer:
How does informal sector affect the economy?
Average incomes are substantially lower in the informal economy and there is a higher preponderance of impoverished employees working in the informal sector. In addition, workers in the informal economy are less likely to benefit from employment benefits and social protection programs.