Reasons for the high informal sector employment in S. A

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Geography

Sofia

12 January, 05:59

Reasons for the high informal sector employment in S. A

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Cierra Figueroa · Answer 1

I think S. A here means South Africa. There can be two reasons to explain for the high informal sector employment. The first reason is that they escape from paying taxes. In the informal sector, they conduct business directly by cash, so they don't pay income taxes. The other reason is that regulation laws are onerous for small businesses.