From informality to formal employment in Latin America and the Caribbean?! An essay on the challenges and opportunities of the 21st century

Juliano Vargas

doi:10.26694/2764-1392.8902

Autores

Juliano Vargas Universidade Federal do Piauí https://orcid.org/0000-0002-9766-836X

DOI:

https://doi.org/10.26694/2764-1392.8902

Palavras-chave:

Dual Economy, Informal Work, Labour Market, Latin America and the Caribbean, Structural Change

Resumo

The general objective on this essay is to briefly and critically analyze the key challenges and opportunities for overcoming high levels of informal work in Latin America and the Caribbean in the 21st century. It is assumed that informality constitutes a structural and persistent phenomenon, associated with the dual economy, the fragility of social protection, and the institutional obstacles in the region. Drawing on classic and contemporary authors, it is argued that regional inequalities, precarious work, and economic instability keep a large portion of the workforce outside the formal market. Conversely, opportunities for formalization linked to regulated digitalization, tax simplification, the strengthening of collective organizations, the expansion of financial inclusion, and integrated public policies are pointed out. It is concluded that a sustained reduction in informality depends on economic growth articulated with political will, institutional cooperation, and the expansion of citizenship.

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