The Informal Economy and the Underclass

The Informal Economy and the Underclass - The Informal...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
The Informal Economy and the Underclass • The secondary labor market affecting many members of racial and ethnic minorities has come to be called the informal economy. The informal economy (or underground economy ) consists of transfers of money, goods, and services that are not reported to the government. This label describes much of the work in inner-city neighborhoods and poverty-stricken rural areas. • Workers are employed in the informal economy seasonally or infrequently. The work they do may resemble the work of traditional occupations, such as mechanic, cook, or electrician, but these workers lack the formal credentials to enter such employment. The informal economy also includes unregulated child-care services, garage sales, and the unreported income of craftspeople and street vendors. • According to the dual labor market model, minorities have been relegated to the informal economy. Although the informal economy may offer employment, it provides few safeguards against fraud or malpractice that victimizes the workers. There are also few of the fringe benefits
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

The Informal Economy and the Underclass - The Informal...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online