Many (possibly most) informal firms are fundamentally different from formal ones and they would be unable to compete in the formal economy, even if the costs of formalisation were low. This is why forcing these firms to enter the formal economy may simply drive them out of business. Ultimately, the best way to reduce informality is to encourage economic growth, since the general process of development tends to reduce the size of the informal sector (La Porta and Shleifer, 2014). It will also be important to foster skill accumulation, especially entrepreneurial skills, which are a fundamental driver of development. Using the extended framework, the chapter provides the first comprehensive analysis of job quality in twelve emerging economies for which the required data are available. Most notably, the labour market security dimension of job quality is extended to cover the risk of extreme low pay while employed, which is significant in most emerging economies.