Urbanization and (In)Formalization

Inexorable urbanization and formalization have been the expectations in development discourse. Indeed, measures of urbanization and formalization have been provided and used as indicators of development. But while urbanization has proceeded apace in developing countries, formalization has slowed significantly over the past quarter century. These disconnect raises questions for development analysis and development policy. Why did one expect urbanization and formalization to go together in the first place? Is the link between urbanization and formalization more complex than what had once thought? What then explains the recent disconnect between urbanization and formalization? Is formalization a reasonable policy goal? May urbanization policies and formalization policies conflict? If so, what can be done to resolve the conflicts? These are the questions this paper addresses. The paper has three core sections. The first section asks what exactly is meant by formality and informality. The second section turns to urbanization processes and asks how they intersect with and interact with the incentives to formalize. The third section looks at policy. Each view of how urbanization feeds formalization has distinctive policy conclusions.

Bibliographic Details

Main Authors:	Ghani, Ejaz, Kanbur, Ravi
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2013-11
Subjects:	AGGLOMERATION ECONOMIES, BASIC SERVICES, CONCERN OF POLICY MAKERS, CREATING JOBS, DEVELOPING COUNTRIES, DEVELOPMENT POLICY, EARNING, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECOSYSTEM, EDUCATED MIGRANTS, EMPLOYMENT GROWTH, EMPLOYMENT RESEARCH, EMPLOYMENT SHARE, EMPLOYMENT SUBSIDIES, EXTERNALITIES, FIRM SIZE, FORMAL SECTOR WAGE, INCIDENCE OF POVERTY, INDUSTRIALIZATION, INFORMAL ECONOMY, INFORMAL EMPLOYMENT, INFORMAL SECTOR, INFRASTRUCTURE SERVICES, INTENSIVE INDUSTRIES, JOB CREATION, JOBS, LABOR COSTS, LABOR FORCE, LABOR LAWS, LABOR MARKET, LABOR MARKET RIGIDITIES, LABOR MARKETS, LABOR PRODUCTIVITY, LABOR REGULATIONS, LABOUR, LAND USE, LAND USE REGULATIONS, LARGE CITIES, LARGE POPULATION, LEVELS OF PRODUCTIVITY, LIVING CONDITIONS, LOCAL INFRASTRUCTURE, LOCAL POPULATION, LOCATION DECISIONS, MANUFACTURING INDUSTRIES, METROPOLITAN AREAS, MIGRANTS, MINIMUM WAGE, MODERNIZATION, NATIONAL AUTHORITIES, NEWSLETTER, OCCUPATIONS, PACE OF URBANIZATION, PAYING JOBS, PERMANENT SETTLEMENT, PLANT PRODUCTIVITY, POLICY DISCUSSIONS, POLICY IMPLICATIONS, POLICY MAKERS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLICY RESPONSE, POPULATION DENSITY, POPULATION INCREASES, PRODUCTIVITY GAINS, PRODUCTIVITY GROWTH, PROGRESS, PROPERTY RIGHTS, PURCHASING POWER, PURCHASING POWER PARITY, ROADS, RURAL AREAS, RURAL DEVELOPMENT, RURAL EMPLOYMENT, RURAL POPULATION, RURAL POVERTY, SAFETY NET, SANITATION, SELF EMPLOYED, SERVICE DELIVERY, SKILLED WORKERS, SLUMS, SMALL ENTERPRISES, SOCIAL COHESION, SOCIAL POLICY, SOCIAL PROGRAMS, STEEL FACTORY, SUPPLIERS, TAXATION, TOTAL FACTOR PRODUCTIVITY, TRANSPORTATION, UNEMPLOYED, UNEMPLOYMENT, URBAN, URBAN AREA, URBAN AREAS, URBAN DEVELOPMENT, URBAN EMPLOYMENT, URBAN MIGRATION, URBAN POLICIES, URBAN POPULATION, URBAN POPULATIONS, URBAN POVERTY, URBAN RESEARCH, URBAN SECTOR, URBAN SERVICES, URBAN SETTLEMENTS, URBAN UNEMPLOYMENT, URBANIZATION, VULNERABILITY, WORKER, WORKFORCE, YOUNG MEN,
Online Access:	http://documents.worldbank.org/curated/en/2013/11/18868575/urbanization-formalization http://hdl.handle.net/10986/17744
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