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Essay from the year 2019 in the subject Business economics - Economic Policy, grade: A-, Ethiopian Civil Service University (College of Urban Development and Engineering), course: Managing Informality, language: English, abstract: This paper look sin to different theoretical and empirical literature concerning the trends of informal economy, segmentation and differentiation within informal economy and ways in which informal economy is segmented, ways of measuring informal economy, and the size and significance of informal economy. A strong effort is made to get vast recent empirical evidence regarding the size and significance of informal economy and differentiation and segmentation within it in Addis Ababa. Based on this concept, the level of informality in Addis Ababa is measured and informal economy appears to be a vast sector, with low value added and limited innovation and dynamics. In fact, value added has reduced over time. For most, it offers a quality of life far below that of the formal sector.