Determinants of informal employment among working mothers in Mexico

Abstract

Whether women's informal employment is an involuntary marginal condition or a preferred alternative to formal employment has generated intense debate in academic and policy circles, particularly in view of women's disproportionate representation in the informal economy. We analyzed detailed interviews with 136 working mothers in Mexico to gain a better understanding of the factors leading to informal employment, as well as the impact of this work on these women and their families. Our results show that informal employment was not a choice for many women who entered the informal labor market due to human capital constraints and family responsibilities. Additionally, women commonly faced challenges in meeting the needs of both their employers and their families and earning adequate income. We suggest policy options to address the factors constraining women's employment opportunities and improve the situation of those women already working in the informal economy.