The Contributions of Undocumented Immigrants to Amsterdam’s Informal Economy: Navigating Shadows, Shaping Communities

This study explores the pivotal role of undocumented immigrants in Amsterdam’s informal economy, emphasizing their economic contributions despite systemic exclusion from formal institutions. Drawing on the mixed embeddedness theory and disadvantage theory, the study examines how restrictive immigration laws and limited market opportunities shape the entrepreneurial activities of undocumented individuals. These entrepreneurs often operate in marginalized sectors, such as hospitality, cleaning, and informal retail, where they navigate precarious conditions, exploitative practices, and lack of access to such formal and legal protections as social security, healthcare access, and regulatory standards. Public discourse in the Netherlands frequently portrays undocumented immigrants as a burden on society, overshadowing their significant contributions to local economies. By analyzing the interaction between institutional barriers and economic agency, this study underscores the resilience and ingenuity of undocumented entrepreneurs in sustaining livelihoods while highlighting the structural inequities that perpetuate their vulnerability. The findings aim to inform policy discussions on integrating undocumented workers into the formal economy, recognizing their vital role in urban economic ecosystems.