Globalization has brought increased competition, new technology, and the reorganization of production in the form of global production chains. Restructuring has led to the proliferation of irregular forms of employment and outsourcing in the informal economy. While multinational corporations have contributed to this through relocation of labour-intensive production to low-wage developing countries, governments have also implemented a drive to “flexibilize” labour markets. As a result, “core” formal jobs (with security, opportunities to advance and social security benefits) decreased in size and proportion. At the same time, work in the informal economy (comprising of non-
standard forms of work) has grown rapidly in both developed and developing countries. The gendered effects have not been uniform.

In this paper, we discuss the challenge of the informal economy with a gender perspective. The concepts of informal sector, homeworker and informal employment are defined as it has developed in recent years. The challenges for policy for the workers and enterprises in the informal economy and particularly for women is discussed.