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Under a law close to approval by Congress, an informal worker under 50 can expect a pension at 65 of at least 1,050 pesos a month, gratis.
Or try your luck as an informal worker, migrate as a domestic worker (often working in slave-like conditions), or beg on the streets.
According to our estimation, an informal worker would require $2,000+$2,000∗.079 to work in December 2012.
Raw descriptive statistics show that the average number of employees in a firm that employs an informal worker is 50, while a formal worker has on average 119 co-workers.
If firms hiring informal workers take into account the expected cost of hiring an informal worker, then the difference between the informal and formal labor income also includes the expected fine employers anticipate to pay.
The person is considered a formal worker, if the employee registered with the social security institute (IMSS) or is a government worker (ISSSTE7), and an informal worker otherwise.8 This legal definition is also used by, e.g., Bosch & Maloney (2007) and Bargain & Kwenda (2009), and usually considered as being more precise than definitions based on, for example, firm size.
Similar(54)
While the detailed information captures necessary observable characteristics for estimating elasticity for formal workers, the RAIS lacks information for informal workers and those out of the labor force.
The Babajobs initiative is another interesting example of how increased access to information can improve self-employment opportunities, by providing labor intermediation services to informal workers.
Informal workers were "largely invisible ten years ago" she says.
Similar programmes to support informal workers have been set up in housing and child care.
And asking historically informal workers to provide a municipal service involves behavior change.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com