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INFORMAL SECTOR OVERVIEW The Characteristics of Informal Sector The concept of “informal sector” was firstly introduced by the International Labor Organization (ILO) in 1973, in its official report of its comprehensive employment mission in Kenya. However, the concept itself, until now, is still in debate. The most difficult thing in the debate is to make an agreement in setting definite boundaries between the informal sector and the formal sector (Dijk, 1998, 179; Whyte, 1991, 34). There are many different perceptions and definitions in determine the scope and, even, the characteristics of the informal sector. This discussion does not focus on the debate, but it rather aims to accomplish a general overview of the informal sector as a basis of this project analysis. However, it is interested to refer the characteristics of the informal sector given by Michelle Hansenne, the Director-General of ILO in his speech-report (ILO, 1991, 4), as follows: 1. It is a very small-scale unit producing and distributing goods and services. The measurement limit of a small-scale is different from one’s opinion to others. It can be the small scale on its place, capital, number of labor, or others. 2. It consists largely of ind