
The phenomenon of the informal economy is both deceivingly simple and extraordinarily complex, trivial in its everyday manifestations and capable of subverting the economic and political order of nations. We encounter it in our daily life in such simple activities as buying a cheap watch or a book from a street vendor, arranging for a handyman to do repair work at our home for cash, or hiring an immigrant woman to care for the children and clean the house while we are away. Such apparently trivial encounters may be dismissed as unworthy of attention until we realize that, in the aggregate, they cumulate into billions of dollars of unreported income and that the humble vendor or cleaning woman represents the end point of complex subcontracting, labor recruitment, and labor transportation chains. … We do not commonly realized that the clothing we wear, the restaurant meals we eat, and even the laptop computer we regularly use may have something to do with the informal economy.
Excerpted from The Handbook of Economic Sociology, edited by Neil J. Smelser and Richard Swedberg. Published by Princeton University Press, Princeton, New Jersey, 2005.

