An essential resource of an underdeveloped country includes small and tiny productive organizations based on informal self-employment. Informal employment is a widespread feature of today's global economy. On average, informal employers earn lower earnings and face higher risks than formal workers. Policies should seek to raise wages and decrease the risks of poor workers in the informal economy. In its 2002 report Decent Work and the Informal Economy, the International Labor Organization (ILO) states that the aim is to reduce the “decent work deficits” of informal workers, who tend to experience larger deficits than formal workers in four dimensions: opportunities, rights, protection and social dialogue. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Below is a brief summary of urban informal sector policy: Both economic and social policies have a great effect on the informal economy. While no single method can address the concerns of all categories of businesses, activities or informal employers, there is a growing belief that a comprehensive policy framework should require four overarching objectives: the first of the four is to create more opportunities for jobs, preferably formal jobs, through labor-depleting growth: some argue that this can only be achieved through employment policies; others believe that employment objectives should be integrated into development strategies. Some also argue that the overall structure of employment opportunities must be transformed to allow the working poor to take advantage of available opportunities. Register informal businesses and regulate informal jobs: – Registration and taxation of informal businesses should be done by simplifying bureaucratic procedures and offering benefits and incentives in exchange for paying taxes. At the same time, adequate regulations should discourage employers from hiring workers informally or from informalizing existing jobs. Employers should be encouraged to contribute to their employees' health coverage and pensions and extend other benefits. Extend state social protection and legal protection to the informal workforce: – There is growing consensus on the need for universal healthcare and pension coverage, although there is little agreement on the appropriate role of government regulation and public spending, and on the mix of public and private services. It is also necessary to extend legal protection to informal workers. The United Nations Commission on the Legal Empowerment of the Poor has prioritized three areas: property rights, workers' rights and business rights. In most countries, this will require reform of existing legal regimes as informal workers are not covered by existing labor regulations or trade/entrepreneurial laws. But many informal activities are regulated by sector-specific regulations (for example, those regulating the trade of fresh foods) and undermined by local regulations that discourage or prohibit informal activities. Please note: this is just an example. Get a customized document from our expert writers now. Get a Custom Essay Increase the productivity of informal businesses and the incomes of informal workers: – There are two ways to achieve this. The first is to increase the positive aspects: through measures of.