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>> The Informal
Economy and Local Economic Development<<
Why is the Informal Economy
Important?
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The
informal economy is a growing part of local and national economies. (See
trends and statistic data)
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Although incomes are frequently low,
collectively they are valuable.
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Informal
economies can contribute directly to poverty reduction. It secures the livelihoods of a large proportion of the population. Data on levels of incomes earned by street vendors are
scarce, but they have proven to be higher than assumptions and
theories. For example, in 1992, street vendors' incomes in the
cities of Benin were still favorable when compared with the legal minimum
wage (ranging from 1.1 to 4.5 times the minimum wage according to the kind
and the branch of activity).
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