ABSTRACT
This chapter presents the analysis of the 'informal' sector by examining constraints on entry to the occupations implied by the term, and growth prospects for those inside it. An important distinction can be drawn between conditions of entry to various occupations for long-established town residents as against conditions facing new arrivals. The concept of the 'intermediate' sector was introduced by William Steel in 1976. This was the name given to a set of enterprises which were larger than what were typically thought to be 'informal' enterprises, yet were not big enough to be considered 'formal'. The evolution of the concept of the 'informal' sector as a heuristic device in development studies was a useful antidote to the overly rigid application of unemployment-based studies. Rather than spending time and effort in measuring varieties of unemployment, it had become apparent that recognising the different forms of labour-use in cities was a more promising path to follow.
