Enterprise Formalization: Fact or fiction?

Informality of enterprises seems to be a rational behaviour that can best be overcome by reducing the cost of formalization and by offering clear benefits like an extended coverage of social protection. This is one of the key findings of a new joint study of the International Labour Organization (ILO) and the German Agency for International Cooperation (GIZ) trying to summarize what works and what doesn’t work in formalizing the large informal enterprise sector in developing and emerging countries.