Informal Work in Latin America: Competing Perspectives and Recent Debates

During the 'lost decade' of the 1980s, informal work and self-employment emerged as the most prevalent forms of work throughout Latin America. In response to the economic crisis, the majority of Latin American countries adopted a series of sweeping neoliberal reforms designed to open nations to trade and investment, promote export-led growth, and generate employment, ultimately reducing the incidence of informal work. Despite the widespread adherence to the neoliberal model and implementation of structural adjustment reforms during the past quarter century, informal work has not diminished and in much of Latin America the odds of finding 'decent work' are no better today than during the economic crisis of the 1980s. In light of this seeming paradox, this article offers an overview of the recent debates and controversies surrounding informal work in Latin America. Drawing on recent research, as well as reports and policy documents from key international organizations, I pose and attempt to answer four core questions: What counts as informal work? Who works informally in Latin America? Why do men and women throughout Latin America increasingly resort to informal work? What role does informal work play as a livelihood strategy in Latin America and how has this role changed in recent years?