Gender Differences in Informal Sectors: Investigating the Driving Factors

In the midst of an era that has unleashed the rise of technology, a craze for modernity and consequently, the rise of globalization, informality in global economies continues to run rampant around the world. Informal businesses generate income without government involvement. These establishments are not regulated or overseen by the government and therefore, are not subjected to government taxation. In the past decade, the role of women in informal sectors around the world has also been evolving. In the wake of growing emerging markets particularly in Africa and South America, it has been noted that informal economies are also strengthening in size and power, with female employment making a larger impact than in years past. My research focuses on regional differences and trends in informality, and more importantly, exposes female involvement in informal sector across three different continents and more than twenty countries. This paper studies the driving factors of gender differences in informality. It delves deeper into the socioeconomic trends leading to higher percentages of women in informal sectors, besides social norms.