Understanding Latin America’s Self-Employment
The region can reduce the bias against working in the formal sector to boost growth prospects, an expert writes.
A stubbornly high informal employment rate is often blamed for Latin America and the Caribbean’s subpar economic performance. Today, roughly half of the region’s 325 million workers lack a formal labor contract, which means they are not covered by mandatory social security programs, paid leave, minimum wages, or other benefits. Many in the informal sector are self-employed, represented largely by small family companies, plumbers, and electricians who provide essential services to society. What motivates this critical group of entrepreneurs, and is their vast number a...
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