Microeconomic Analysis of the Informal Sector-Results of Sample Surveys (Agricultural DEVELOPMENT AND Policy) (Report‪)‬

1. INTRODUCTION In earlier studies of the informal sector, and in particular in its association with small-scale, cottage and household manufacturing industries (HM), this sector was commonly considered as economically backward, low-income and offering few possibilities for raising productive employment. Later studies, by Allal and Chutta (1982) questioned this view, and noted, in addition, that informal activities are an important source of income and employment for a large portion of the population and will remain so over a long period to come and cannot be neglected, therefore, in the design of development policies.