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Living with Duality: Fiscal Policy and Informality in Latin America

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  • Juan Ramón de Laiglesia

Abstract

Although hard to measure, informality is by all accounts high in Latin America: about half of the region’s working population can be considered informal. In Mexico, the only Latin American country that belongs to the OECD, up to 60 per cent of non-agricultural workers – almost 22 million people – are employed informally or self-employed. These working people have opted out or have been shut out of the formal system of taxes and social protection. In that sense, they bear witness to a broken social contract between citizens and the state.

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File URL: http://dx.doi.org/10.1787/228275726751
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Development Centre Policy Insights with number 81.

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Date of creation: Oct 2008
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Handle: RePEc:oec:devaac:81-en

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Cited by:
  1. Goktuna, Bilge Ozturk & Dayangac, Renginar, 2011. "Rethinking the informal labour from an evolutionary point of view," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 609-615.
  2. Senses Dayangac, Renginar & Ozturk Goktuna, Bilge, 2011. "Informal Employment and Family Support: An Evolutionary Analysis," GIAM Working Papers 11-4, Galatasaray University Economic Research Center, revised 01 Apr 2011.

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