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Labor Informality in Latin America and the Caribbean: Patterns and Trends from Household Survey Microdata

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Listed author(s):
  • Gasparini Leonardo

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  • Leonardo Tornaroli

Abstract

This paper documents the main patterns and trends of alternative definitions of labor informality in Latin America and the Caribbean, by exploiting a large database of more than 100 household surveys covering the period 1989-2005. The evidence suggests that there are no signs of a consistent pattern of reduction in labor informality in the region. Regardless of the definition used, labor informality remains a pervasive characteristic of labor markets in LAC. In several countries the increase in labor informality seems to have been associated more to a sizeable increase in the propensity to set informal arrangements within groups, than to changes in the national employment structure toward more informal sectors.

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File URL: http://economia.uniandes.edu.co/revistadys/Articulo63_2.pdf
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Article provided by UNIVERSIDAD DE LOS ANDES-CEDE in its journal REVISTA DESARROLLO Y SOCIEDAD.

Volume (Year): (2009)
Issue (Month): (September)
Pages:

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Handle: RePEc:col:000090:005860
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Keywords: Informality; employment; Latinamerican; Caribean; Labor Market;

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Find related papers by JEL classification:
  • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
  • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
  • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
  • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
  • J8 - Labor and Demographic Economics - - Labor Standards

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  1. Maloney, William F., 2004. "Informality Revisited," World Development, Elsevier, vol. 32(7), pages 1159-1178, July.
  2. Pradhan, Menno & van Soest, Arthur, 1995. "Formal and informal sector employment in urban areas of Bolivia," Labour Economics, Elsevier, vol. 2(3), pages 275-297, September.
  3. Jaime Saavedra & Alberto Chong, 1999. "Structural reform, institutions and earnings: Evidence from the formal and informal sectors in urban Peru," Journal of Development Studies, Taylor & Francis Journals, vol. 35(4), pages 95-116.
  4. James J. Heckman & Lance J. Lochner & Petra E. Todd, 2003. "Fifty Years of Mincer Earnings Regressions," NBER Working Papers 9732, National Bureau of Economic Research, Inc.
  5. Fugazza, Marco & Fiess, Norbert M. & Maloney, William, 2002. "Exchange rate appreciations, labor market rigidities, and informality," Policy Research Working Paper Series 2771, The World Bank.
  6. Portes, Alejandro & Blitzer, Silvia & Curtis, John, 1986. "The urban informal sector in Uruguay: Its internal structure, characteristics, and effects," World Development, Elsevier, vol. 14(6), pages 727-741, June.
  7. Gasparini Leonardo & Leonardo Tornaroli, 2009. "Labor Informality in Latin America and the Caribbean: Patterns and Trends from Household Survey Microdata," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, September.
  8. Friedrich Schneider & Dominik Enste, 1999. "Shadow Economies Around the World - Size, Causes, and Consequences," CESifo Working Paper Series 196, CESifo Group Munich.
  9. Guha-Khasnobis, Basudeb & Kanbur, Ravi & Ostrom, Elinor, 2006. "Beyond Formality and Informality," Working Papers 127038, Cornell University, Department of Applied Economics and Management.
  10. L. C. Gasparini, 2002. "Microeconometric decompositions of aggregate variables: an application to labour informality in Argentina," Applied Economics, Taylor & Francis Journals, vol. 34(18), pages 2257-2266.
  11. Maloney, William F, 1999. "Does Informality Imply Segmentation in Urban Labor Markets? Evidence from Sectoral Transitions in Mexico," World Bank Economic Review, World Bank Group, vol. 13(2), pages 275-302, May.
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