ABSTRACT
The chapter reviews the linkage between informality and immigration by focusing on the low-skilled segment of the labor market. First, the concept of informal economy is discussed, followed by a brief overview of the conditions under which informal activities are most likely to occur. Next, three main sectors are presented where informal economic activities are likely to flourish: agriculture, construction, and domestic and care services. The role of informality as a steppingstone to self-employment and business ownership is also discussed. Last, measurement issues are analyzed, with emphasis on the need for adequate data collection to capture the prevalence of economic activities and income generation in the informal sector.
