The term informal sector refers to employment and production that takes place in small and/or unregistered enterprises. It includes self-employment in informal enterprises (small and unregistered enterprises) and wage employment in informal jobs (unregulated and unprotected jobs) for informal enterprises, formal enterprises, households or for no fixed employer.
Source: Hussmanns, Ralf. (2003) Statistical definition of informal employment: Guidelines endorsed by the Seventeenth International Conference of Labour Statisticians. International Labour Office: Geneva.