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OECD Development Centre Policy Insights

The OECD Development Centre links OECD members with developing and emerging economies and fosters debate and discussion to seek creative policy solutions to emerging global issues and development challenges. OECD Development Centre Policy Insights is a series of policy-oriented occasional papers drawn from the Development Centre’s Work Programme. All titles are generally available in the two official languages of the OECD: English and French.

English French

Living with Duality: Fiscal Policy and Informality in Latin America

Although hard to measure, informality is by all accounts high in Latin America: about half of the region’s working population can be considered informal. In Mexico, the only Latin American country that belongs to the OECD, up to 60 per cent of non-agricultural workers – almost 22 million people – are employed informally or self-employed. These working people have opted out or have been shut out of the formal system of taxes and social protection. In that sense, they bear witness to a broken social contract between citizens and the state.

English French

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