Informal sector


A sector that is broadly characterised as comprising production units that operate on a small scale and at a low level of organisation, with little or no division between labour and capital as factors of production, and with the primary objective of generating income and employment for the persons concerned. Operationally, the sector is defined on a country-specific basis as the set of unincorporated enterprises owned by households which produce at least some products for the market but which either have less than a specified number of employees and/or are not registered under national legislation referring, for example, to tax or social security obligations or regulatory acts.

Source definition

OECD, The System of National Accounts, 1993 - Glossary, 2000.