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date: 26 November 2020

Abstract and Keywords

This chapter deals with informality and its transition to formality. This transition enables those working in the informal economy to improve their chances of being included and to improve their economic performance. The second section reviews the main trends registered in labour markets and the increasing importance of informality. The third section analyses the evolution of the concept of informality and, in particular, the transit from the informal sector to the informal economy. The next three sections analyse, on the basis of the data available, the size, characteristics, and evolution of the informal economy in Latin America. The seventh section outlines the main components of a strategy to promote inclusion and opportunities for those working in the informal economy. The strategy is mostly based on the conceptual framework and on policies already introduced in many countries of the region.

Keywords: informal economy, economic performance, labour markets, Latin America, informality

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