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Pressures towards and against formalization: Regulation and informal employment in Mozambique
Author(s) -
DIBBEN Pauline,
WOOD Geoffrey,
WILLIAMS Colin C.
Publication year - 2015
Publication title -
international labour review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.433
H-Index - 46
eISSN - 1564-913X
pISSN - 0020-7780
DOI - 10.1111/j.1564-913x.2014.00014.x
Subject(s) - modernization theory , ambivalence , informal sector , elite , state (computer science) , process (computing) , economic system , economics , political science , market economy , economic growth , psychology , social psychology , algorithm , politics , computer science , law , operating system
The informal economy accounts for the bulk of employment in many emerging economies. Regulation theory suggests that all economic activity is characterized by a complex combination of formal and informal regulation. Looking at the case of Mozambique, this article explores the pressures towards and against formalization, and the forms regulation can take, drawing on qualitative research based on in‐depth elite interviews and observation. The findings highlight how the State's role in promoting formalization of the informal economy is ambivalent; its approach incorporates both “progressive” elements, which focus on the modernization of regulations and institutions, and “conservative” elements, which inhibit this process of change.