How close are formal and informal work?

Purpose: Recent changes in the UK to the regulation and modes of work in the formal and informal economies are considered. Research in this field has tended to remain in silos (treating formal economy working conditions separately from research on the informal economy. The question is whether the means of work and benefits to the worker for formal and informal work are now as different as the former images of formal and informal economy work imply under a ‘jobs-for-life’ economy. This leads in to a consideration of whether the current aim of government regulation of the informal economy – to formalise it – is actually of benefit to workers, as might be supposed. Design/methodology/approach: The article considers recent research findings on the formal and informal economy, using official government statistics for the UK and more detailed European studies on the informal economy. Findings: The article argues that formal employment in the UK is becoming more casualised, with less associated benefits to employees. Though it is still of benefit to the state to formalise informal work (to increase tax take), some of the links between formalisation and a good working environment for workers are being broken, which may lead to the informal economy becoming more popular and require different priorities in regulation. Originality/value: The article argues that we need to change our assumptions and image of work in the formal economy, compared to that in the informal economy.