Abstract
This paper defines the informal sector (IS) as being self employed
persons assisted by family and other non-wage earners. It discusses some
theoretical aspects of the urban informal sector and presents some pertinent
findings in indonesia such as why persons enter the informal sector.
relationships of the informal sector to itself and the formal sector (FS),
factors affecting the competitiveness and potential of the informal sub-
sectors. and the interpretation of a change in the size of the informal sector
relative to the format sector. An analysis of Central Bureau of Statistics
data shows that the rate of growth of the informal sector from 1985 to 1990
was much tower than the formal sector and much lower than the informal
sector from 1980 to 1985, with the construction and transportation sectors
being exceptions and the female informal sector growth rate being 39 % that
of males.
