From migrant enclaves to mainstream: Reconceptualizing informal economic behavior

Abstract

The “informal economy” has developed in sociological theory to refer to clusters of illegal or quasi-illegal activities, usually unreported, by which people in some immigrant or ethnic communities earn income outside regular businesses and jobs. This article first extrapolates a set of characteristics beyond the legal status of such activities that define the “informal economy.” These provide a richer framework for future research and the basis for identifying informal economic activity in other sectors of the legitimate mainstream economy. In fact, informalization seems to have gone from marginal activities to a mainstream movement to make large sectors more fluid, network-based, and less regulated—the informalized economy. Its characteristics are identified. They overlap with the first set but differ principally in terms of extending Merton's proposition that different social structures exert different pressures to engage in non-conforming behavior. The article concludes with policy implications for fostering greater entrepreneurship in marginal migrant communities, and it suggests new ways for economic sociologists to study network transactions in modern corporations of informal economic activity through generative sociology.