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El dilema del empleo informal y la pobreza monetaria
[The dilemma of informal employment and monetary poverty]

Author

Listed:
  • Rodríguez Núñez, Juan Bautista

Abstract

This paper explores the relationship between informal employment and monetary poverty in the Dominican Republic, focusing on the structural factors that link both phenomena. Informal workers often lack social protection, face low productivity, and earn subsistence-level wages, trapping them in a cycle of poverty. The study draws from various theoretical frameworks, including Dualist, Institutional, Structuralist, and Voluntarist perspectives, to explain the persistence of informality. It highlights that low education levels and inadequate access to capital are significant determinants of informal employment and poverty. Empirical evidence demonstrates that informal employment exacerbates poverty, as workers in this sector often lack access to financial resources, healthcare, and social protection. Additionally, some workers voluntarily choose informal employment to avoid taxes and regulations in exchange for flexible labor conditions. The findings suggest that structural reforms, including changes in labor laws, social protection expansion, and promotion of technical education, are necessary to address the root causes of informal employment. In conclusion, this paper emphasizes the need for sustainable public policies that foster formal employment opportunities, reduce poverty, and improve the socio-economic conditions of workers in the informal sector.

Suggested Citation

  • Rodríguez Núñez, Juan Bautista, 2024. "El dilema del empleo informal y la pobreza monetaria [The dilemma of informal employment and monetary poverty]," MPRA Paper 123537, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:123537
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    References listed on IDEAS

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    1. Amuedo-Dorantes, Catalina, 2004. "Determinants and Poverty Implications of Informal Sector Work in Chile," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 347-368, January.
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    3. Guillermo Vuletin, 2008. "What is the Size of the Pie? Measuring the Informal Economy in Latin America and the Caribbean," Money Affairs, CEMLA, vol. 0(2), pages 161-191, July-Dece.
    4. Maloney, William F., 2004. "Informality Revisited," World Development, Elsevier, vol. 32(7), pages 1159-1178, July.
    5. Gustavo Henrique de Andrade & Miriam Bruhn & David McKenzie & Miriam Bruhn, 2013. "A Helping Hand or the Long Arm of the Law?," World Bank Publications - Reports 22623, The World Bank Group.
    6. Guillermo Javier Vuletin, 2008. "Measuring the Informal Economy in Latin America and the Caribbean," IMF Working Papers 2008/102, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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