Rural-urban variation in informal work activities in the United States: Fid-Bau Portal

Rural-urban variation in informal work activities in the United States

Jensen, Leif / Tickamyer, Ann R. / Slack, Tim

Abstract Using a unique national-level household survey of informal labor in the United States, this paper examines the extent that rural versus urban residence influences the types and forms of participation in informal work activities. The informal economy consists of work activities that generate income or reduce expenditures outside the scope of state regulation in contexts where these activities otherwise would be regulated. Often associated with developing and transition economies, past research using both qualitative and quantitative methods demonstrate its prevalence in industrial and postindustrial economies. In the U.S., most of this research is geographically constrained or limited to specific subpopulations and sectors. Our analysis employs descriptive and multivariate techniques to analyze a national-level household survey on informal economic activity to explore rural-urban variation in the prevalence, forms, importance and correlates of participation in the informal economy.

Highlights • Roughly two-thirds of sampled household reported some form of informal work. • The prevalence of informal work is higher in non-metropolitan (non-metro, i.e., rural) than metropolitan areas. • Non-metro households are somewhat more likely to engage in informal activity requiring access to land and natural resources. • Non-metro households are more likely to state reasons of economic distress such as insufficient local demand for labor. • The higher prevalence of informal work in non-metro areas remains after controlling for demographic and economic variables.