THE INFORMAL SECTOR ELEPHANT

Different analysts have used the term ''informal sector'' to mean diff erent things. A data set with 2,200 small enterprises chosen using ran dom procedures in seven countries makes it possible to test the relati onships between different measures. The analysis finds only limited pa rallels between definitions based on size, on registration, on conform ity to fiscal and other regulations, and on degrees of modernization. Wide variations appear from one country to another. The term may be ap propriate for examination of individual countries, especially if the a nalyst defines it precisely; but its use in multicountry analysis is f raught with difficulties. Copyright (C) 1996 Elsevier Science Ltd