Skip to main content

Globalization and Informal Jobs in Developing Countries

By Marc Bacchetta, Ekkehard Ernst, and Juana Paola Bustamante

This study presents an overview of current research on the relationship between trade globalization and informal jobs (those with no formal contracts or benefits) in developing economies. Based on existing academic literature and complemented by new research by ILO and the World Trade Organization, the book discusses the impact of trade reforms on different dimensions of informal employment. Various transmission mechanisms are discussed, setting results from country studies against international comparisons.

The volume analyzes the policies necessary for countries with large informal economies to take advantage of trade reforms and maximize the benefits from international trade. It discusses the obstacles to translating trade openness into sustainably higher long-term growth rates and focuses on the connections between trade, labor, and social policies that can create conditions for countries to integrate successfully into the world economy.

Get daily updates from Brookings