Question

In Labor Studies- Discuss how power is maintained in the informal economy

Answer 1

Informal economy is characterized by employment that is based on verbal commitment, no rights to the workers and no legal remedy available to them. In this scenario, it is the structural power that plays a major role in maintaining power, because it is derived by the skills and abilities owned by the workers. Though, informal economy does not require highly skilled people, but it thrives when there is an high level of unemployment. It pushes skilled people also towards informal economy and structural power development takes place. In informal economy, scope of associational power, institutional power are non-existent, so these sources of power cannot be used in informal economy. In some capacity, social power by building informal groups, can bring power balance when a group work together , even if their action is not protected by the laws. So, the work of maintaining the power balance is done by structural power and social power.