8 The informal economy in cities of the South

The urban ‘informal economy’ has traditionally been equated with a heterogeneous range of precarious, low-productivity, poorly remunerated income-generating activities in cities of the South. Informal employment usually prevails in commerce and services, but also occurs in manufacturing production. Although many people in the informal economy work on their own account in street-vending, the running of ‘front room’ eateries, stalls or shops, the operation of domestic-based industrial units, and the transport of passengers and goods (see Figures 3.8.1 and 3.8.2), other informal workers are subcontracted by large firms, especially in labour-intensive industries such as toys, footwear and clothing.