AFFLUENT PLAYERS IN THE INFORMAL ECONOMY: EMPLOYERS OF PAID DOMESTIC WORKERS

Abstract

This article uses the case of paid domestic work in Los Angeles to argue that affluent and middle‐class members of U.S. society constitute important participants in the informal economy. In‐depth, tape‐recorded interviews conducted with thirty‐five employers of nannies and house cleaners, and survey responses of 154 Latina house cleaners and nannies shows that compliance with government regulations, as indicated by payment of Social Security, Medicare and federal tax withholdings, are rare. Affluent citizens may not directly depend on informally generated income, but as employers of paid domestic workers and nannies, they do depend on informally organized and remunerated services. Employers of paid domestic workers rely on three major narrative strategies to distance themselves from the regulations, arguing that the standards should be followed by certain categories of people (attorneys, celebrities, the very wealthy), that the regulations apply only to those employing full‐time help, and that the regulations are illegitimate because both undocumented workers and the state lack legitimacy. These rationalizations allow them to simultaneously condemn Zoe Baird and yet follow the same practices. Upgrading the occupation requires state support and the education of employers. This process would lead to greater recognition of paid domestic work as an occupation, one that merits the protections and regulatory guidelines governing other jobs.