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Informal Labour in Spain: Reality, Impact and Challenges

In: Human Resource Development for Sustainability and Social Responsibility

Author

Listed:
  • Asunción López Arranz

    (University of A Coruña)

  • Ignacio Picatoste-Novo

    (University of A Coruña)

Abstract

The existence of informal work is a reality worldwide, and the fight against it requires a multidimensional approach that includes effective regulation, education, and an enabling environment for formalisation. Although progress has been made, much remains to be done to effectively integrate informal workers into the formal economy and guarantee their labour rights. Collaboration between government, society and business is essential to address this challenge. Public policies that encourage formalisation, such as simplifying procedures, tax incentives or access to training, can encourage firms to formalise. In addition, digitalisation and the use of emerging technologies offer opportunities to improve competitiveness, allowing firms to be more agile and adaptive. Our work is focussed on the case of Spain and by a legal and socioeconomic focus, presents a reflection about the nature, challenges and future actions. The results shown that, despite this and the fact that inspections have increased significantly, there is still a perception that fines are low and that the benefits of operating outside the formal system are large, so that the continuation of these practices is still encouraged.

Suggested Citation

  • Asunción López Arranz & Ignacio Picatoste-Novo, 2026. "Informal Labour in Spain: Reality, Impact and Challenges," Springer Proceedings in Business and Economics, in: Isabel Novo-Corti & Xose Picatoste & Marco Valeri (ed.), Human Resource Development for Sustainability and Social Responsibility, chapter 0, pages 475-487, Springer.
    • Handle: RePEc:spr:prbchp:978-3-032-09683-8_32
    DOI: 10.1007/978-3-032-09683-8_32
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