Minimum wage and job transitions in Mexico
ABSTRACT This paper analyzes the labor market effects of Mexico’s 2019 minimum wage reform, which doubled wages in northern border municipalities. Using other northern municipalities with smaller wage adjustments as a comparison group, we examine changes in worker transitions across employment states. The reform lowered quit rates among formally employed workers but increased them for certain informal workers. Although the wage hike did not raise overall layoffs, it altered their composition: laid-off formal workers became more likely to transition into informal employment, while new formal hires increasingly came from previously employed informal workers.
- Research Article
1
- 10.26480/jhcdc.02.2023.56.61
- Jan 1, 2023
- JOURNAL OF HEALTHCARE IN DEVELOPING COUNTRIES
The study examines the impact of the COVID-19 pandemic lockdown policy on the welfare of workers in the formal and informal sectors in Gwagwalada Area Council, Abuja, Nigeria, during the COVID-19 period using health and education services as case study. The study was motivated by the fact that the outbreak had a negative influence on both formal and informal workers’ well-being; nonetheless, concluding that the lockdown had an equivalent impact on both formal and informal sector workers in Gwagwalada Area Council without an empirical investigation may not have been reasonable enough. Thus, the need for this study to make a comparative analysis between formal and informal sector workers. For empirical purpose, independent two-sample t-test were used to compare perceptions of the two sectors regarding the effects of daily COVID-19 cases and the attendant lockdown stringency measures on health and education services uptake of workers in the two sectors understudy. A survey of 363 respondents was undertaken between the formal and informal workers in Gwagwalada Area Council of Abuja, Nigeria, to examine the effects of the pandemic lockdown policy measures on the uptake of education and health services. The study found that the informal sector workers were more severely affected than the formal sector during the lockdown. To address these challenges, the study recommends, among others, massive loans and grants for business owners with little or no interest rate to cushion the effects of the COVID-19.
- Research Article
- 10.26480/jhcdc.02.2023.91.96
- Jan 1, 2023
- JOURNAL OF HEALTHCARE IN DEVELOPING COUNTRIES
The study examines the impact of the COVID-19 pandemic lockdown policy on the welfare of workers in the formal and informal sectors in Gwagwalada Area Council, Abuja, Nigeria, during the COVID-19 period using health and education services as case study. The study was motivated by the fact that the outbreak had a negative influence on both formal and informal workers’ well-being; nonetheless, concluding that the lockdown had an equivalent impact on both formal and informal sector workers in Gwagwalada Area Council without an empirical investigation may not have been reasonable enough. Thus, the need for this study to make a comparative analysis between formal and informal sector workers. For empirical purpose, independent two-sample t-test were used to compare perceptions of the two sectors regarding the effects of daily COVID-19 cases and the attendant lockdown stringency measures on health and education services uptake of workers in the two sectors understudy. A survey of 363 respondents was undertaken between the formal and informal workers in Gwagwalada Area Council of Abuja, Nigeria, to examine the effects of the pandemic lockdown policy measures on the uptake of education and health services. The study found that the informal sector workers were more severely affected than the formal sector during the lockdown. To address these challenges, the study recommends, among others, massive loans and grants for business owners with little or no interest rate to cushion the effects of the COVID-19.
- Research Article
- 10.47814/ijssrr.v7i9.2357
- Oct 25, 2024
- International Journal of Social Science Research and Review
Minimum wage rules were created as a safety net for employers to provide a living wage for their workers. However, in reality this rule is difficult to implement in the informal sector. Based on the research location in Semarang Regency, the purpose of this study is to determine and examine the implementation of minimum wages, determine and examine the obstacles in implementing regulations regarding minimum wages, and explain the form of legal protection provided by the government to guarantee adequate wages for informal sector workers in Semarang Regency. The research approach method used is socio-legal and applies analytical descriptive research specifications. The results of the study show that the rules regarding minimum wages have not been enforced in the informal sector. This obstacle is caused by 3 aspects. For example, from the aspect of workers, there are informal sector workers whose competence is below that of formal sector workers. From the aspect of employers, the provision of wages is highly dependent on business income. From the government's side, there is a distinction in the imposition of rules regarding minimum wages where minimum wage rules only apply in the formal sector. So that the form of legal protection for informal sector workers is non-existent. The only effort is to provide assistance and law enforcement if there has been a case of violation of the rights of informal sector workers.
- Research Article
32
- 10.1108/ijse-03-2020-0165
- Dec 1, 2020
- International Journal of Social Economics
PurposeThe purpose of this paper is to establish the main factors influencing willingness to pay for health insurance and pension schemes among informal workers in low- and middle-income countries (LMICs). Historically, informal economy workers have been excluded from social protection coverage. There is a growing need, interest and policy discourse in LMICs to extend social security to informal economy workers. However, little is known about informal workers' willingness to pay (WTP) for social security services in different LMIC settings.Design/methodology/approachThe authors conducted a systematic review and searched five databases from 1987 to 2017. Included papers focused on “social security”, “social insurance”, “pension”, “informal economy”, “informal sector” and “informal workers” in LMICs. Authors conducted independent data appraisal and data extraction. A total of 1790 papers were identified. After exclusion, 34 papers were included in the analysis. Given the heterogeneous results, the authors performed a narrative synthesis to consolidate the findings of the different studies.FindingsIn total, 34 studies from 17 countries were included in the review, out of which 23 studies focused on health insurance, 7 studies on pension schemes and 4 studies on social security in general. The study showed that income and trust were associated with WTP for both health insurance and pension schemes. In addition, family size, age, education and residential area were common factors for both forms of social security. For health insurance, experience of sickness, attitude and presence of medical doctors as well as distance from the healthcare facility all played a role in determining WTP. For pension schemes, low and flexible contribution rates, benefit package, government subsidies and quality of administration of the schemes influenced enrolment and contributions.Research limitations/implicationsMore evidence is needed for WTP for pensions among informal workers.Practical implicationsThe findings show that socio-economic differences, scheme-type (health or pension) and level of trust influence WTP for health insurance or pension among informal sector workers. The review results suggest that the factors influencing WTP for health insurance and pensions interplay in a complex web of relations. More evidence is needed on WTP for pensions among informal workers.Social implicationsFurther studies are particularly needed on the interrelationship of the influences to WTP, including gender issues, access barriers and socioeconomic factors, among program design issues for social security.Originality/valueThis paper is based on a systematic review methodology and contributes to the discourse on extending social security to informal economy workers based on evidence from various countries.
- Book Chapter
- 10.4324/9780429259593-39
- Jun 21, 2021
Women organising, advocacy and Indian cities in between informal dwelling and informal economies
- Research Article
39
- 10.1016/j.worlddev.2020.104999
- Apr 30, 2020
- World Development
The minimum wage in formal and informal sectors: Evidence from an inflation shock
- Research Article
- 10.1177/11786302251413644
- Feb 26, 2026
- Environmental health insights
Workplaces are vital for Occupational Safety and Health (OSH) knowledge dissemination. This study examines OSH knowledge, attitudes, and practices among formal and informal sector workers in Freetown, Sierra Leone, and their associations with workplace characteristics. A cross-sectional survey was conducted using a validated, semi-structured questionnaire to collect data on sociodemographic characteristics, workplace safety factors, and occupational safety indicators. The survey assessed 3 primary outcomes variable adequate knowledge, good attitude, and good practice. Multivariable analyses were used at significant level (P < .05) to examined associations between independent and outcomes variables. The study included 516 respondents, predominantly were male (84.3%). Educational attainment varied, with 23.6% having tertiary education and 4.7% non-formal education. Literacy rates showed 76.6% were literate. Significant disparities emerged between sectors: formal sector workers demonstrated higher rates of adequate knowledge (60.7%), good attitudes (54.9%), and good practices (77.3%) compared to informal workers. Formal sector employment was significantly associated with better OSH outcomes, including knowledge (aOR = 2.4, 95%CI: 1.43-4.15, P < .001) and practices (aOR = 16.2, 95%CI: 2.80-95.81, P < .002). These findings highlight substantial sector-based differences in occupational safety and health indicators. This study reveals substantial and significant disparities in occupational safety and health (OSH) between formal and informal sector workers. Formal sectors employment is strongly associated with better OSH outcomes, particularly safer practices, thus, underscoring an urgent need for targeted policy, tailored training programmes, gender-sensitive interventions, and regulatory interventions to protect vulnerable informal workers.
- Research Article
17
- 10.1108/ijssp-06-2016-0071
- Jul 11, 2017
- International Journal of Sociology and Social Policy
PurposeRecent changes in the UK to the regulation and modes of work in the formal and informal economies are considered. Research in this field has tended to remain in silos (treating formal economy working conditions separately from research on the informal economy). The question is whether the means of work and benefits to the worker for formal and informal work are now as different as the former images of formal and informal economy work imply under a “jobs-for-life” economy. The purpose of this paper is to consider whether the current aim of government regulation of the informal economy – to formalise it – is actually of benefit to workers, as might be supposed.Design/methodology/approachThis paper considers recent research findings on the formal and informal economy, using official government statistics for the UK and more detailed European studies on the informal economy.FindingsThis paper argues that formal employment in the UK is becoming more casualised, with less associated benefits to employees. Though it is still of benefit to the state to formalise informal work (to increase tax take), some of the links between formalisation and a good working environment for workers are being broken, which may lead to the informal economy becoming more popular and requiring different priorities in its regulation.Originality/valueThis paper argues that we need to change our assumptions and image of work in the formal economy, compared to that in the informal economy.
- Research Article
18
- 10.2139/ssrn.299776
- Feb 12, 2002
- SSRN Electronic Journal
The Informal Sector in Venezuela: Catalyst or Hindrance for Poverty Reduction
- Research Article
- 10.23887/jet.v9i4.98163
- Nov 25, 2025
- Journal of Education Technology
Workers in the informal economic sector often face limited access to formal education and professional training, which restricts their opportunities for knowledge and skills development. This study aims to explore how mobile learning supports the acquisition of knowledge and practical skills among informal economy workers in the Global South. The study employed a qualitative descriptive case study design. Data were collected through semi-structured interviews with 11 informal economy workers from Africa and Asia who had participated in mobile learning courses delivered via the Online Labour Academy (OLA) mobile application. The interview data were analyzed using thematic analysis to identify key patterns related to participants’ learning experiences and outcomes. The findings reveal that mobile learning has a transformative impact on informal workers. Participants reported increased competence, empowerment, digital literacy, problem-solving skills, and readiness to teach others. Mobile learning also enhanced their confidence to apply new knowledge in real work contexts and motivated them to continue learning independently. Furthermore, participants perceived that the skills acquired through mobile learning were demonstrable and marketable, contributing to improved employability and community-based knowledge sharing. This study concludes that mobile learning is an effective, inclusive, and scalable educational approach for supporting knowledge and skills development among informal economy workers. By providing flexible and accessible learning opportunities, mobile learning enables marginalized populations to overcome educational barriers, promotes lifelong learning, and contributes to socio-economic empowerment within the informal sector.
- Supplementary Content
- 10.1108/ijssp-01-2026-0024
- Mar 18, 2026
- International Journal of Sociology and Social Policy
Purpose In this article, we aim to propose a new analytical framework for examining (in)formal work and its transformations induced by digital labour platforms (DLPs). The article also introduces the special issue on the entrenchment between DLPs and informal work. Design/methodology/approach We reconstruct the key theoretical frameworks and concepts used in recent research addressing precarization, casualization and informalization effects of DLPs on work, and we reflect on how the debate on informal economy and work can advance understandings on platform work, and how research on DLPs can contributes to the debate on the informal economy, informal work and hybridization of work. Findings The analytical framework consists of four core principles that, in our opinion, should always be present in the analysis of platform work and informal work: (1) the need to move beyond the binary distinction between formal and informal work by adopting a hybridization-of-work perspective; (2) the importance of clarifying how informality is defined; (3) the need to consider informal work as an integral component of broader labour transformations; and (4) the importance of fostering dialogue between the global North and the global South. We also identify three central dimensions of analysis: the individual perspective, the relational dynamics and the role of institutions in shaping informality. While each of these dimensions offers valuable insights on its own, it is crucial to take into account how they interact. Originality/value The proposed framework aims to advance the understanding of the erosion of standard employment, the changes in the informal work and its relations with the formal parts, moving beyond the dominant narratives of precarization and informalization that prevail in much of the existing literature.
- Research Article
22
- 10.1016/j.heliyon.2022.e10321
- Aug 1, 2022
- Heliyon
The effect of economical phenomenon on informal construction workers earnings within Covid-19 pandemic: A mixed method analysis
- Single Book
8
- 10.1596/1813-9450-8989
- Aug 1, 2019
Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if
- Research Article
- 10.70382/bejemcr.v7i4.008
- Mar 31, 2025
- Journal of Environmental Management and Construction Research
The formalization of the informal sector in Nigeria cannot be effectively achieved without strategic planning to improve the working conditions of informal workers. While various studies have explored aspects of the informal economy, limited research has examined the critical role of urban and occupational planning in shaping their work environment. This study aims to assess the working conditions of Nigeria’s informal sector workers and highlight the importance of planning as a foundational step in the formalization process. Using a descriptive and narrative content analysis of existing literature, the study reveals that informal workers in Nigeria face hazardous conditions, lack social protection, and operate in environments prone to pollution and occupational risks. These conditions threaten their health, safety, and overall well-being, necessitating a structured planning approach to integrate informal workspaces into the broader urban framework. The findings emphasize the essential role of urban planners in providing social, spatial, environmental, and regulatory guidance to informal workers, helping them navigate the opportunities and challenges within their work environments. A well-structured planning strategy can support informal sector workers in mitigating occupational hazards, fostering economic sustainability, and gradually transitioning into the formal economy. To achieve this, the Nigerian government must develop a comprehensive national occupational health and safety policy alongside a regulatory framework tailored to the needs of the informal sector.
- Single Book
85
- 10.1596/1813-9450-3870
- Mar 1, 2006
Despite the existence of minimum wage legislation in most Latin American countries, there is little empirical evidence demonstrating its impact on the distribution of wages. In this study the authors analyze cross-country data for 19 Latin American and Caribbean (LAC) countries to gain an understanding of if and how minimum wages affect wage distributions in LAC countries. Although there is no single minimum wage institution in the LAC region, the authors find regional trends. Minimum wages affect the wage distribution in both the formal and, especially, the informal sector, both at the minimum wage and at multiples of the minimum. The minimum does not uniformly benefit low-wage workers: in countries where the minimum wage is relatively low compared to mean wages, the minimum wage affects the more disadvantaged segments of the labor force, namely informal sector workers, women, young and older workers, and the low skilled, but in countries where the minimum wage is relatively high compared to the wage distribution, it primarily affects wages of the high skilled. This indicates that the minimum does not generally lift the wages of all, but instead, it offers a wage into which employers can "lock in" wages that are already near that level. Thus, minimum wage legislation is more far-reaching than originally thought, affecting both the uncovered informal sector and those earning above the minimum. In addition, the relative level of the minimum wage is important for determining whose wages are affected.