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Exploring Trends in Labor Informality in Latin America, 1990-2010

Author

Listed:
  • Leopoldo Tornarolli

    (CEDLAS, FCE - UNLP)

  • Diego Battistón

    (CEDLAS, FCE - UNLP)

  • Leonardo Gasparini

    (CEDLAS, FCE - UNLP)

  • Pablo Gluzmann

    (CEDLAS, FCE - UNLP)

Abstract

Labor informality is a pervasive characteristic of the labor markets in Latin America, and a central issue in the public policy debate. This paper discusses the concept of labor informality and implements alternative definitions using microdata from around 300 national household surveys in all Latin American countries. The analysis covers two decades: while labor informality, defined as lack of social protection related to employment, remained with few changes in the 1990s, there is a discernible downward pattern during the 2000s in most countries. These movements reveal a counter-cyclical behavior of labor informality, that may be linked to segmentation in the labor market.

Suggested Citation

  • Leopoldo Tornarolli & Diego Battistón & Leonardo Gasparini & Pablo Gluzmann, 2014. "Exploring Trends in Labor Informality in Latin America, 1990-2010," CEDLAS, Working Papers 0159, CEDLAS, Universidad Nacional de La Plata.
    • Handle: RePEc:dls:wpaper:0159
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    References listed on IDEAS

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    Cited by:

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    2. Roxana Maurizio & Ana Paula Monsalvo, 2021. "Informality, labour transitions, and the livelihoods of workers in Latin America," WIDER Working Paper Series wp-2021-19, World Institute for Development Economic Research (UNU-WIDER).
    3. Verónica Amarante & Rodrigo Arim & Mijail Yapor, 2016. "Decomposing inequality changes in Uruguay: the role of formalization in the labor market," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-20, December.
    4. Matías Ciaschi, 2020. "Job loss and household labor supply adjustments in developing countries: Evidence from Argentina," CEDLAS, Working Papers 0271, CEDLAS, Universidad Nacional de La Plata.
    5. Berniell, Inés & Berniell, Lucila & Mata, Dolores de la & Edo, María & Marchionni, Mariana, 2021. "Gender gaps in labor informality: The motherhood effect," Journal of Development Economics, Elsevier, vol. 150(C).
    6. Rodrigo R. Soares & Daniel Haanwinckel, 2017. "Fighting employment informality with schooling," IZA World of Labor, Institute of Labor Economics (IZA), pages 394-394, October.
    7. Cristina Fernández & Leonardo Villar, 2016. "A Taxonomy of Colombia’s Informal Labor Market," Coyuntura Económica, Fedesarrollo, vol. 46(1), pages 15-50, June.
    8. Gustavo Canavire-Bacarreza & Luis C. Carvajal-Osorio, 2020. "Two Stories of Wage Dynamics in Latin America: Different Policies, Different Outcomes," Journal of Labor Research, Springer, vol. 41(1), pages 128-168, June.
    9. Daniel Haanwinckel & Rodrigo R Soares, 2021. "Workforce Composition, Productivity, and Labour Regulations in a Compensating Differentials Theory of Informality [Search with Multi-worker Firms]," Review of Economic Studies, Oxford University Press, vol. 88(6), pages 2970-3010.
    10. Joshua Wassink, 2018. "Is Local Social Development Associated with Workforce Composition? A Municipal Analysis of Mexico, 1990–2015," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 37(6), pages 941-966, December.
    11. Fairris, David & Jonasson, Erik, 2016. "Determinants of Changing Informal Employment in Brazil, 2000–2010," MPRA Paper 71475, University Library of Munich, Germany.
    12. 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.
    13. Santiago Garganta & Leonardo Gasparini & Mariana Marchionni, 2017. "Cash transfers and female labor force participation: the case of AUH in Argentina," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-22, December.

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