ABSTRACT
In deprived neighbourhoods, large numbers of people are excluded from employment and are dependent on a welfare ‘safety net’ that is being put under increasing pressure. ‘Economic exclusion’, by which we here mean the exclusion of citizens from work and income to meet their basic material needs and satisfy their desires, is thus one of the most urgent problems confronting these communities. The traditional solution has been to strive to create additional formal jobs so that economic exclusion can be eradicated. The problem, however, is that such an approach, especially in deprived areas, is unrealistic given the shift in advanced economies ever further away from full employment. In this chapter, therefore, we evaluate whether informal economic activity in deprived neighbourhoods provides a complementary means of satisfying basic needs and wants. To do this, case study evidence is employed from a deprived neighbourhood in Leicester to reveal the current magnitude and character of informal economic activity and the barriers to participation in informal work. Finally, we address the policies and practices that need to be introduced to develop more informal work and the implications of promoting this complementary approach to local economic development.
