The formality/informality relationship in the Mexican labor market

Abstract

Mexico is characterized by marked socio-economic contrasts: on the one hand, it is part of the twenty industrialized countries; on the other, 44% of its population lives in poverty. When considering the characteristics of its labor market, it stands out that 57% of the employees are informal, and 50% of the population have incomes below the welfare line. This article argues that the formality/informality relationship is practical to maintain Mexico’s capitalism and, as part of this argument, it develops the following aspects: diverse views on informality, the usefulness of focusing on occupation, the National Occupation and Employment Survey in Mexico, the role of household as an economic unit, and inequality and the labor market.