The informal economy is considered the most important of economic issue which still concerns researchers. It is found in all states with different economic patterns and affects all social strata and all age groups. This type of economy forms a high p
ercentage of the gross domestic product of most countries of the world.
Accordingly, this research came to clarify the concept of the informal economy, and identify its components. As well as, this research showed the most important reasons to pay individuals to work at informal activities. Also this research illustrated the significant impact of school dropout and the effect of corruption at increasing the informal economy also showed the most important characteristics of workers in the informal economy.
