Informality and Inclusive Growth: What South Africa can tell us about the benefits and costs of informal employment
- Make formality more attractive than informality: (a) Increase the benefits of formality by providing incentives to firms who formalise. (b) Decrease the costs of formality by making legal requirements a simple, cost-effective, and efficient process.
- Don’t penalise informal firms, support them by eliminating constraints: (a) Eliminate external constraints: provide a space to work in, electricity and other necessary services, and the required infrastructure. (b) Eliminate internal constraints: provide educational and upskilling programmes.
Other ELLA knowledge materials relating to Informality:
GUIDES AND BRIEFS