Urbanization and (In)Formalization

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dc.creatorKanbur, Ravi
dc.creatorGhani, Ejaz
dc.date2013-04-11T19:17:06Z
dc.date2013-04-11T19:17:06Z
dc.date2013-02
dc.date.accessioned2026-07-01T00:54:59Z
dc.descriptionTwo of the great stylized predictions of development theory, and two of the great expectations of policy makers as indicators of progress in development, are inexorable urbanization and inexorable formalization. Urbanization is indeed happening, beyond the "tipping point" where half the world's population is now urban. However, formalization has slowed down significantly in the past quarter century. Indeed, informality has been increasing. This disconnect raises a number of questions for development analysis and development policy. Is the link between urbanization and formalization more complex than what had been thought? What does this mean for policy? The first core section of this paper asks what exactly is meant by formality and informality. The second core section turns to processes of urbanization and asks how these processes intersect with and interact with the incentives to formalize. The paper examines why cities attract the informal sector and the role that urbanization plays in growth and job creation through both the formal and informal sectors. Cities generate agglomeration benefits in the informal sector, perhaps more so than for the formal sector. The third core section is devoted to policy. At the current conjuncture, agglomeration benefits make a strong case for urbanization as an integral part of development strategy, but concerns about jobless growth and about urban poverty require a focus on the informal sector.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2013/02/17386378/urbanization-informalization
dc.identifierhttps://hdl.handle.net/10986/13157
dc.identifierhttps://doi.org/10.1596/1813-9450-6374
dc.identifier.urihttp://hdl.handle.net/123456789/412898
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper;No. 6374
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectAGGLOMERATION ECONOMIES
dc.subjectBASIC SERVICES
dc.subjectCONCERN OF POLICY MAKERS
dc.subjectCREATING JOBS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectEARNING
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMICS
dc.subjectECOSYSTEM
dc.subjectEDUCATED MIGRANTS
dc.subjectEMPLOYMENT GROWTH
dc.subjectEMPLOYMENT MEASURE
dc.subjectEMPLOYMENT SHARE
dc.subjectEXTERNALITIES
dc.subjectFIRM SIZE
dc.subjectFORMAL SECTOR WAGE
dc.subjectINCIDENCE OF POVERTY
dc.subjectINCOME
dc.subjectINDUSTRIALIZATION
dc.subjectINFORMAL ECONOMY
dc.subjectINFORMAL EMPLOYMENT
dc.subjectINFORMAL SECTOR
dc.subjectINFRASTRUCTURE SERVICES
dc.subjectINNOVATION
dc.subjectINTENSIVE INDUSTRIES
dc.subjectJOB CREATION
dc.subjectJOBLESS GROWTH
dc.subjectJOBS
dc.subjectLABOR COSTS
dc.subjectLABOR FORCE
dc.subjectLABOR LAWS
dc.subjectLABOR MARKET
dc.subjectLABOR MARKET RIGIDITIES
dc.subjectLABOR MARKETS
dc.subjectLABOR PRODUCTIVITY
dc.subjectLABOR PRODUCTIVITY GROWTH
dc.subjectLABOR REGULATIONS
dc.subjectLABOUR
dc.subjectLABOUR FORCE
dc.subjectLAND USE
dc.subjectLAND USE REGULATIONS
dc.subjectLARGE CITIES
dc.subjectLARGE POPULATION
dc.subjectLEVELS OF PRODUCTIVITY
dc.subjectLIVING CONDITIONS
dc.subjectLOCAL INFRASTRUCTURE
dc.subjectLOCAL POPULATION
dc.subjectLOCATION DECISIONS
dc.subjectMANUFACTURING INDUSTRIES
dc.subjectMANUFACTURING INDUSTRY
dc.subjectMETROPOLITAN AREAS
dc.subjectMIGRANTS
dc.subjectMINIMUM WAGE
dc.subjectMODERNIZATION
dc.subjectNATIONAL AUTHORITIES
dc.subjectNEWSLETTER
dc.subjectOCCUPATIONS
dc.subjectOUTPUTS
dc.subjectPACE OF URBANIZATION
dc.subjectPAYING JOBS
dc.subjectPERMANENT SETTLEMENT
dc.subjectPLANT PRODUCTIVITY
dc.subjectPOLICY DISCUSSIONS
dc.subjectPOLICY IMPLICATIONS
dc.subjectPOLICY MAKERS
dc.subjectPOLICY RESEARCH
dc.subjectPOLICY RESEARCH WORKING PAPER
dc.subjectPOLICY RESPONSE
dc.subjectPOPULATION DENSITY
dc.subjectPOPULATION INCREASES
dc.subjectPRODUCTIVITY CONVERGENCE
dc.subjectPRODUCTIVITY GAINS
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPRODUCTIVITY GROWTH RATE
dc.subjectPRODUCTIVITY LEVELS
dc.subjectPROGRESS
dc.subjectPROPERTY RIGHTS
dc.subjectRENTS
dc.subjectROADS
dc.subjectRURAL AREAS
dc.subjectRURAL DEVELOPMENT
dc.subjectRURAL EMPLOYMENT
dc.subjectRURAL POPULATION
dc.subjectRURAL POVERTY
dc.subjectSAFETY
dc.subjectSAFETY NET
dc.subjectSANITATION
dc.subjectSELF EMPLOYED
dc.subjectSERVICE DELIVERY
dc.subjectSKILLED WORKERS
dc.subjectSLUMS
dc.subjectSMALL ENTERPRISES
dc.subjectSOCIAL COHESION
dc.subjectSOCIAL POLICY
dc.subjectSOCIAL PROGRAMS
dc.subjectSTEEL FACTORY
dc.subjectSUPPLIERS
dc.subjectTAXATION
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTRANSPORTATION
dc.subjectUNEMPLOYED
dc.subjectUNEMPLOYMENT
dc.subjectURBAN
dc.subjectURBAN AREA
dc.subjectURBAN AREAS
dc.subjectURBAN EMPLOYMENT
dc.subjectURBAN INFRASTRUCTURE
dc.subjectURBAN MIGRATION
dc.subjectURBAN POLICIES
dc.subjectURBAN POPULATION
dc.subjectURBAN POPULATIONS
dc.subjectURBAN POVERTY
dc.subjectURBAN SECTOR
dc.subjectURBAN SERVICES
dc.subjectURBAN SETTLEMENTS
dc.subjectURBAN UNEMPLOYMENT
dc.subjectURBANIZATION
dc.subjectVULNERABILITY
dc.subjectWAGES
dc.subjectWORKER
dc.subjectWORKFORCE
dc.subjectYOUNG MEN
dc.titleUrbanization and (In)Formalization

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