Synopsis the informal economy is vertically stratified. The concept has sufficient flexibility and content to provide a suitable framework of anlaysis for the non-format sector. It is an imperative segment of the labour market in many developing and transition countries. Starting from complete neglect, then phenomenon of informal economic activity has grown to be a subject of study by many researchers, both governmental and non-governmental. The informal economy is a part of survival and household strategies, nevertheless its contribution to well-being remains inadequately understood and largely unnoticed by policy makers. The present study encompasses the genesis and development of the subject.