nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2025–08–11
four papers chosen by
Catalina Granda Carvajal, Banco de la República


  1. A discrete choice model for labor informality in Mexico using restricted sets By Héctor Juan Villarreal Páez; Diego Vázquez-Pimentel
  2. Informalidad, productividades e ingresos en el Perú: Análisis sectorial By Efraín Gonzales de olarte
  3. Evaluación de la efectividad del subsidio “Recuperemos el Empleo Formal” en Perú By Haro, Eduardo; Novella, Rafael; Rosas-Shady, David
  4. Labor Market Structure, and Social Outcomes: A Literature Review Across Developing Economies By Xiǎngxiàng, Húdié; Meeprasert, Thongchai

  1. By: Héctor Juan Villarreal Páez (School of Government and Public Transformation, Tecnológico de Monterrey); Diego Vázquez-Pimentel (School of Government and Public Transformation, Tecnológico de Monterrey)
    Abstract: This paper explores the dynamics of labor informality in Mexico by developing a discrete choice mixed logit model to explain the transitions between labor states—namely, not employed, formal employment, and informal employment—among individuals aged 18 to 65. The study offers critical insights into the informal sector’s heterogeneity, with particular focus on voluntary versus involuntary informality, while also contributing a novel estimation strategy that combines supply- and demand-side constraints within the informal labor market. The results highlight the persistent barriers to formal employment for a significant segment of the labor force, despite policy efforts aimed at reducing informality in Mexico.
    Keywords: informality, restricted choices, microsimulations, labor policies
    JEL: J24 J31 C54
    Date: 2025–07
    URL: https://d.repec.org/n?u=RePEc:gnt:wpaper:5
  2. By: Efraín Gonzales de olarte (Departamento de Economía de la Pontificia Universidad Católica del Perú)
    Abstract: El presente documento tiene como objetivo analizar la informalidad laboral en los diferentes sectores productivos de la economía peruana, a partir de las tablas insumo producto elaboradas por el Instituto Nacional de Estadística e Informática. Tratamos de verificar la relación entre informalidad, productividad e ingresos laborales en los diferentes sectores de la economía peruana. Se asume que la productividad laboral es una de las causas principales de la informalidad del empleo. Complementariamente, analizamos la informalidad laboral en las distintas regiones del Perú, teniendo en cuenta que los sectores productivos están localizados en distintos lugares, lo que incorpora la influencia de los factores geo- económicos y políticos. Se incluye también una estimación de los multiplicadores de empleo formal e informal por sectores productivos. Se concluye que son necesarias políticas sectoriales-regionales para incrementar la productividad laboral y reducir la informalidad. Palabras claves: Informalidad económica, informalidad laboral, productividades sectoriales, regiones, desarrollo regional, multiplicadores. JEL Classification-JE: E26, C67, J46, D24, 054
    Keywords: Informalidad económica, informalidad laboral, productividades sectoriales, regiones, desarrollo regional, multiplicadores.
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:pcp:pucwps:wp00546
  3. By: Haro, Eduardo; Novella, Rafael; Rosas-Shady, David
    Abstract: Este documento presenta la evaluación de impacto del programa de subsidio salarial “Recuperemos el Empleo Formal”, implementado entre noviembre de 2020 y abril de 2022 para mitigar el impacto de la pandemia en el mercado laboral en Perú. El programa buscaba incentivar la contratación formal de trabajadores y preservar los empleos formales. La evaluación utiliza metodologías cuasi experimentales (entropy balancing y diferencias en diferencias), así como datos administrativos de la Planilla Electrónica y registros de implementación del programa. Los resultados sugieren que el programa logró incentivar la contratación formal, principalmente de trabajadores adultos y con contratos temporales.
    Keywords: Subsidio Salarial;Empleo Formal;datos administrativos
    JEL: J23 J38
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:idb:brikps:14189
  4. By: Xiǎngxiàng, Húdié; Meeprasert, Thongchai
    Abstract: This paper explores the interconnected roles of telecommunications infrastructure and labor market regulation in shaping socioeconomic outcomes such as informality, crime, and life expectancy. Drawing from development economics, institutional theory, and empirical literature, we argue that these domains operate in structural interdependence rather than isolation. While telecommunications systems can facilitate economic participation and improve service delivery, their impact is constrained by labor market rigidity and weak institutional capacity. Using insights from European and low-income contexts, the paper highlights how inadequate alignment between digital infrastructureand employment regulation can undermine development goals. We advocate for integrated policy approaches that simultaneously strengthen regulatory institutions and expand inclusive digital access. This multidimensional framework enhances our understanding of how structural conditions shape public welfare, particularly in regions facing entrenched informality and social vulnerability.
    Keywords: Telecommunications, Labor Market Regulation, Informality, Institutional Quality, Social Outcomes
    JEL: E0
    Date: 2024–12–19
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:125304

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