Informality, Labor Market Dynamics, and Business Cycles in North AfricaAuthor/Editor:Olivier Bizimana ; Shant ArzoumanianPublication Date:September 8, 2023Electronic Access:Free Download. This paper aims to shed light on the role played by the informal sector in labor market adjustments over the business cycle. The analysis also confirms that informal employment is countercyclical and acts as a buffer during economic downturns in countries with relatively higher informality. By contrast, employment informality tends to fall modestly or increase during economic upturns, including the post-pandemic recovery. This finding presages the persistence of a large informal sector in the post-covid era in medium- and high-informality countries.
