Question

Give at least three reasons why tracking the informal sector of an economy is difficult.

Answer 1

Unofficial earning strategies (illegality in business): (1) Unofficial business activities: tax evasion, avoidance of labor regulation and other government or institutional regulations, no registration of the company; and (2) Underground activities: crime, corruption - activities not registered by statistical offices. 

Answer 2

Answer:

Tracking the informal sector of an economy is difficult because governments have a hard time tracking things they don't regulate. Informal jobs are often temporary, seasonal, and unstable. Additionally, people in the informal sector often don't want to talk about what they do to make money.

Explanation: