Informality and Households’ Vulnerabilities in Latin America
Data, Insights and Implications for Labour Formalisation Policies
This report examines labour informality in Latin America and the Caribbean (LAC), focusing on both individual workers and households. Using data from the OECD's Key Indicators of Informality based on Individuals and their Households (KIIbIH), which cover 19 LAC countries, it shows that two-thirds of the region's population lives in informal or mixed households, many of which rely entirely on informal work. The report then discusses how informality limits access to social protection and affects household well-being, particularly for women, youth and the elderly. It highlights differences between rural and urban areas, and the prevalence of informality in sectors like agriculture. Additionally, it presents recent policy efforts aimed at expanding social protection and formalising employment, including strategies to address the challenges posed by digital and platform-based work. It offers insights for policy makers and researchers interested in understanding informality and its implications for social protection and labour markets in the region.
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