Informality and Gender in Latin America

Abstract

Informality can either be seen as an opportunity for promising business start-ups or as a poverty trap, but either interpretation has caused tremendous debate especially in Latin America. Furthermore, its gender dimension has only recently been discussed, and the paper aims to analyze the gender differences found in this informal economy, especially focusing on microenterprises. It finds that on one hand there are skilled people in market niches that successfully integrate themselves into the global economy, while others with poor education operate on a small and survivalist scale such as street vendors for imported products. The paper shows that to achieve gender equality and poverty reduction objectives, as stated in the Millennium Development Goals, there needs to be an effort to diminish this skill gap difference. The paper examines the income and working hour differences of families where at least one woman is working in the informal sector. Conclusions suggest that policies need to emphasize an integrated package including jobs, incomes, rights, social protection, and representation that reflects the goals of social dialogue and promote the Decent Work Agenda.