Labor informality in Mexico since the 1980s: the reinforced poverty-gender nexus

Şahin, Büşra.
The presence of labor informality, defined as one of the fundamental sources of income for the vast majority of people, is a wide-spread phenomenon among developing countries, especially in Sub-Saharan Africa, South Asia and Latin America. The prevalence of labor informality has been considered as one of the major obstacles in the development process for developing economies due to its linkages with poverty and inequality. Furthermore, the concept manifests itself in different forms that are determined by sectorial and gender differences at national and international levels. The purpose of this study is to investigate the linkage between the persistence of labor informality and poverty-gender nexus by analyzing the case of Mexico since the transition to neoliberalism that had been carried out by different administrations. The main research questions in this study are how and to what extent the implementation of neo-liberal policies has affected the Mexican labor informality since the 1980s and how labor informality, poverty and gender differences in the labor market affect each other during this period.This study argues that the labor informality is more prevalent among the female workers in Mexico severely affecting the livelihood women more than men. Consequently, the issue of poverty has become more prevalent among women who are working informally under unfavorable working conditions.