ABSTRACT
Theories of the informal sector, the informal economy and economic informalisation embody a serious attempt by scholars to move beyond the boundaries of orthodox development theory to a more inclusive theoretical framework that takes account of alternative modes of economic development. However, the debate around informal labour and productivity has not demonstrated the same dynam ism and in many respects remains hamstrung by the dominance of human capital theory. In this chapter, I reconceptualise labour within the informal debate by exploring alternative approaches that seek to address the social and institutional context within which the productive capacity of informal labour is defi ned. Sen’s capabilities approach provides a more nuanced and sophisticated framework of analysis, emphasising capabilities rather than capital. This approach is particularly signifi cant because it opens up the theoretical space within which personal, social and institutional ‘conversion factors’ are highlighted and their impact on cap ability formation can be assessed. This is a critical conceptual shift, but ultimately it doesn’t provide a comprehensive analysis of the structures of constraint, non-freedom and low productivity experienced by informal labour. The Marxian categories of social relations of production and reproduction prove more useful because they extend the analysis of labour to include the social relations and conditions under which labour and labour power is reproduced. The theoretical distinction between labour and labour power is particularly signifi cant when evaluating the productive potential of poor workers and has profound implications for how informal labour is both conceptualised and integrated into economic policy.
