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>> The Informal Economy and Local Economic Development<<
Why is the Informal Economy Important?
  • The informal economy is a growing part of local and national economies. (See trends and statistic data)

  • Although incomes are frequently low, collectively they are valuable. 

  • 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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