A recent study jointly conducted by the International Labor Organisation and the World Trade Organization has concluded that instead of helping economies in developing countries, high incidence of informal employment is hampering them from reaping the fruits of globalization and free market economy. The study deduced that the existence of private unregistered enterprises creates “poverty traps” for workers as they do not offer social or economic protection as prescribed by the law of the land. The study also observed that those employed informally are more vulnerable to shocks during economic crisis as compared to their formal counterparts.