Economic dualism

Economic dualism refers to the coexistence of two distinct economic sectors within a country: a modern, formal sector characterized by advanced technology, higher productivity, and better-paying jobs, and a traditional, informal sector often marked by low productivity, subsistence farming, or small unregistered businesses. This dual structure can lead to disparities in income, employment opportunities, and quality of life. While the formal sector may thrive and attract investment, the informal sector can struggle, highlighting inequalities and limiting overall economic growth. Understanding economic dualism helps policymakers address these imbalances and promote more inclusive development.