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Work in the informal sector

The informal sector, as opposite of the formal sector, is the part of an economy that is neither taxed, nor monitored by the state or government. Activities in the informal sector are not included in the GNP or GDP of a country.

As parts of the world experience a severe economic crisis, the number of children in harmful work is likely to increase. Reduction in living standards coupled with pressure on government budgets and service delivery often means an increase in the number of children involved in work, particularly in the informal sector where their vulnerability to harmful work is higher.

In some parts of the world children are increasingly engaged in the informal sector as factory work is outsourced through intermediaries with most of the work taking place in homes where children and their parents work for long hours. Payment is usually based on the number of items they produce, rather than on the number of hours they work.

Photo: Save the Children 

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