IDEAS home Printed from https://ideas.repec.org/a/gam/jworld/v6y2025i3p109-d1715733.html

Dismantling the Myths of Urban Informality for the Inclusion of the Climate Displaced in Cities of the Global South

Author

Listed:
  • Susana Herrero Olarte

    (Faculty of Economics and Administrative Sciences, Universidad de Las Americas, Quito 170124, Ecuador)

  • Angela María Díaz-Márquez

    (Information Intelligence Department, Universidad de Las Americas, Quito 170124, Ecuador
    Research Department, Universidad Latina Costa Rica, San Jose 11501, Costa Rica)

Abstract

By 2050, it is estimated that approximately 200 million people will be displaced due to the impacts of climate change. Vulnerability to climate change is shaped not only by environmental factors but fundamentally by systemic power relations and structural conditions present at both the places of origin and destination. In Latin America, climate-displaced persons predominantly settle in marginalised neighbourhoods, where widely accepted informality facilitates their rapid arrival but obstructs genuine progress and full integration as urban citizens. This paper critically examines the prevailing myths that justify the persistence of informality, revealing the socioeconomic challenges faced by climate migrants in the region. These four dominant myths are (1) Latin America’s inherently low productivity levels; (2) concessions by the ruling class enabling excluded groups to merely survive; (3) the perceived privilege of marginalised neighbourhoods to generate income outside formal legal frameworks, which supports their social capital; and (4) the limited benefits associated with formalisation. Debunking these myths is essential for developing effective public policies aimed at reducing informality and promoting inclusive urban integration, ultimately benefiting both climate migrants and host communities.

Suggested Citation

  • Susana Herrero Olarte & Angela María Díaz-Márquez, 2025. "Dismantling the Myths of Urban Informality for the Inclusion of the Climate Displaced in Cities of the Global South," World, MDPI, vol. 6(3), pages 1-16, August.
  • Handle: RePEc:gam:jworld:v:6:y:2025:i:3:p:109-:d:1715733
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2673-4060/6/3/109/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2673-4060/6/3/109/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Blackman, Allen & Brichetti, Juan Pablo & Calatayud, Agustina & Cavallo, Eduardo A. & Datshkovsky, Darcia & Estache, Antonio & Guerrero Compeán, Roberto & Carvalho Metanias Hallack, Michelle & Hamaker, 2020. "From Structures to Services: The Path to Better Infrastructure in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 10460, August.
    2. Ravi KANBUR & Lucas RONCONI, 2018. "Enforcement matters: The effective regulation of labour," International Labour Review, International Labour Organization, vol. 157(3), pages 331-356, September.
    3. Lucas Ronconi, 2019. "Enforcement of labor regulations in developing countries," World of Labour, LISER, pages 457-457, March.
    4. Tokman, Víctor E., 1978. "Las relaciones entre los sectores formal e informal," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), June.
    5. Kanchan Chopra & S. Gulati, 1997. "Environmental degradation and population movements: The role of property rights," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(4), pages 383-408, June.
    6. repec:dbl:dblrep:1090 is not listed on IDEAS
    7. Loayza, Norman & Palacios, Luisa, 1997. "Economic reform and progress in Latin America and the Caribbean," Policy Research Working Paper Series 1829, The World Bank.
    8. Víctor E. Tokman, 2001. "De la informalidad a la modernidad," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, issue 48, pages 153-178.
    9. Cecchini, Simone & Abramo, Laís & Morales, Beatriz, 2019. "Social programmes, poverty eradication and labour inclusion: Lessons from Latin America and the Caribbean," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 44622 edited by Eclac.
    10. Luis Beccaria & Roxana Maurizio, 2018. "Un Análisis Dinámico De Los Flujos De Entrada A La Formalidad En América Latina," Revista de Economía Laboral - Spanish Journal of Labour Economics, Asociación Española de Economía Laboral - AEET, vol. 15, pages 8-56.
    11. Garganta, Santiago & Gasparini, Leonardo, 2015. "The impact of a social program on labor informality: The case of AUH in Argentina," Journal of Development Economics, Elsevier, vol. 115(C), pages 99-110.
    12. Jonsson, Frida & Goicolea, Isabel, 2020. "“We believe in you, like really believe in you”: Initiating a realist study of (re)engagement initiatives for youth not in employment, education or training with experiences from northern Sweden," Evaluation and Program Planning, Elsevier, vol. 83(C).
    13. Andrea Otero-Cortés & Karina Acosta & Luis E. Arango & Danilo Aristizábal & Oscar Iván Ávila-Montealegre & Óscar Becerra & Cristina Fernández & Luz A. Flórez & Luis Armando Galvis–Aponte & Anderson Gr, 2025. "Nueva evidencia sobre la informalidad laboral y empresarial en Colombia," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, issue 108, pages 1-75, February.
    14. Gustavo Sandoval Betancour, 2014. "La informalidad laboral: causas generales," Revista Equidad y Desarrollo, Universidad de la Salle.
    15. Abhijit V. Banerjee & Esther Duflo, 2007. "The Economic Lives of the Poor," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 141-168, Winter.
    16. Alatorre, José Eduardo & Peres Núñez, Wilson & Bárcena Ibarra, Alicia & Samaniego, Joseluis, 2020. "La emergencia del cambio climático en América Latina y el Caribe: ¿seguimos esperando la catástrofe o pasamos a la acción?," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 45677 edited by Cepal.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lucas Ronconi & Ravi Kanbur & Santiago López-Cariboni, 2019. "Who demands labour (de)regulation in the developing world?: Insider-outsider theory revisited," WIDER Working Paper Series wp-2019-90, World Institute for Development Economic Research (UNU-WIDER).
    2. Dewey, Matías & Ronconi, Lucas, 2023. "Weberian Civil Service and Labor Enforcement," IZA Discussion Papers 16295, IZA Network @ LISER.
    3. Rodríguez Núñez, Juan Bautista & Guerra Salazar, Isaac Enmanuel, 2019. "Una Aplicación de la Descomposición Blinder–Oaxaca junto a regresiones por cuantiles de influencia recentrada al sector formal e informal y sus determinantes [An Application of the Blinder–Oaxaca Decomposition together with regressions by quantile," MPRA Paper 115683, University Library of Munich, Germany.
    4. Diana Marcela Jiménez, 2012. "La informalidad laboral en América Latina: ¿explicación estructuralista o institucionalista?," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID.
    5. Kanbur, Ravi & Ronconi, Lucas & López-Cariboni, Santiago, 2020. "Who demands labour (de)regulation in the developing world? Insider–outsider theory revisited," CEPR Discussion Papers 14277, Centre for Economic Policy Research.
    6. Jaya Jumrani & P. S. Birthal, 2017. "Does consumption of tobacco and alcohol affect household food security? Evidence from rural India," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(2), pages 255-279, April.
    7. Picarelli, Nathalie, 2016. "Who really benefits from export processing zones? Evidence from Nicaraguan municipalities," Labour Economics, Elsevier, vol. 41(C), pages 318-332.
    8. Brian McCaig & Nina Pavcnik, 2015. "Informal Employment in a Growing and Globalizing Low-Income Country," American Economic Review, American Economic Association, vol. 105(5), pages 545-550, May.
    9. Wonhyung Lee & Nurul Widyaningrum, 2019. "Multidimensional access to financial services: Insights from Indonesia," Progress in Development Studies, , vol. 19(1), pages 21-35, January.
    10. Richard Kwabena Nkrumah & Samuel Kobina Annim & Benedict Afful, 2021. "Household Social Expenditure in Ghana: Examining the Ex-Post Effects and Vulnerability to Poverty," Social Sciences, MDPI, vol. 10(2), pages 1-15, January.
    11. Dinkelman, Taryn & Ranchhod, Vimal, 2012. "Evidence on the impact of minimum wage laws in an informal sector: Domestic workers in South Africa," Journal of Development Economics, Elsevier, vol. 99(1), pages 27-45.
    12. Khamis, Melanie & Prakash, Nishith & Siddique, Zahra, 2012. "Consumption and social identity: Evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 83(3), pages 353-371.
    13. Julián David Parada, 2008. "Tasa de depreciación endógena y crecimiento económico," Documentos de Trabajo 4594, Universidad del Rosario.
    14. A. Pronti & S. Mancinelli & M. Mazzanti & L. Crudeli, 2025. "The ‘Good Farmer’ concept and the diffusion of innovations in rural Africa," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 42(1), pages 191-222, April.
    15. Guizzo Altube, Matías & Scartascini, Carlos & Tommasi, Mariano, 2023. "The Political Economy of Redistribution and (in)Efficiency in Latin America and the Caribbean," IDB Publications (Working Papers) 13194, Inter-American Development Bank.
    16. Lionel Kesztenbaum & Jean-Laurent Rosenthal, 2014. "Income versus Sanitation; Mortality Decline in Paris, 1880-1914," PSE Working Papers halshs-01018594, HAL.
    17. Dinkelman, Taryn & Schulhofer-Wohl, Sam, 2015. "Migration, congestion externalities, and the evaluation of spatial investments," Journal of Development Economics, Elsevier, vol. 114(C), pages 189-202.
    18. Aneel Karnani, 2009. "The Bottom of the Pyramid Strategy for Reducing Poverty: A Failed Promise," Working Papers 80, United Nations, Department of Economics and Social Affairs.
    19. Avellán, Leopoldo & Galindo, Arturo J. & Lotti, Giulia & Rodríguez, Juan Pablo, 2024. "Bridging the gap: Mobilization of multilateral Development Banks in Infrastructure," World Development, Elsevier, vol. 176(C).
    20. Rebecca Samuel Shah, 2013. "Religion And Economic Empowerment Among The Enterprising Poor," The Review of Faith & International Affairs, Taylor & Francis Journals, vol. 11(4), pages 41-45, December.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jworld:v:6:y:2025:i:3:p:109-:d:1715733. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.