Discussion
Problems of Informalization of labour does not include:
Answer: B
Informalisation of labour means that more workers are employed without a contract or social security. Its problems are the lack of social security, the lower wages that such workers get and the narrowing of the tax base, as incomes in the informal sector are not taxed. Increased productivity is not a problem of informalisation, and so it is the item that is not included. The answer is option B. Lower wages and lack of social security result because informal workers have no formal contracts or bargaining power.
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