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Articles

Vol. 14 No. 51 (2019)

Prospects for the informal economy in Mexico

  • Horacio Sánchez Bárcenas
  • María de Jesús Velázquez Vázquez
  • Octavio Rivas López
DOI:
https://doi.org/10.29201/an6s8j82
Published
December 20, 2019

Abstract

Informality continues to be one of the biggest problems facing economies around the world; not only because of its negative implications for tax collection, but even more so because of its atrocious consequences on collective welfare. It is therefore the “precarization of employment”, a phenomenon that marginalizes the population, the abandonment of social security and immersed in insufficient wages that lead to poverty. The objective of this paper is to analyze the dynamics of informality in Mexico, providing updated data that describe the phenomenon and broadening the panorama of the economic and social implications that this entails. We emphasize the State’s actions in face of this imminent problem and a series of proposals aimed at mitigating its effects are proposed.

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