Informality in the construction sector in developing countries

Wells, J (2007) Informality in the construction sector in developing countries. Construction Management and Economics, 25(1), pp. 87-93. ISSN 1466433X

Abstract

Studies dating from the mid 1990s describe a rapid expansion of 'informal' construction activity in many parts of the developing world. This has been accompanied by increasing diversity in the interpretation of the concept, leading to considerable confusion. Through a wide review of the literature an attempt is made to bring some clarity to the debate. It is argued that the essence of informality is the absence of regulation. As construction activity is subject to a wide variety of regulations, different interpretations of informality in the construction industry are inevitable. Four aspects of regulation are highlighted: regulation of enterprises, of the terms and conditions of employment, of the process of construction and of the product. This suggests four areas of informality: the informal sector of enterprises, informal labour, the informal construction system and informal building/ settlements. The four areas are frequently interrelated. But there are no hard and fast dividing lines between formal and informal, rather a gradation.

Item Type: Article
Uncontrolled Keywords: construction activity; construction sector; informal sector; developing countries; employment; regulation
Index terms: developing country, regulation, construction sector, informal sector, informal construction, employment, construction activity, construction industry
Subjects: management, development economics, political science, industry analysis, construction operations
Topics: Site Management, International Construction, Human Resources, Governance, Research Practice
Descriptive scope: 3 PCT

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here