The Concept of the Informal Economy and its Application in Mexico: Feasibility, Disadvantages and Proposals

Abstract

On the basis of a historical review of ILO’s theoretical and methodological postulates for quantifying the informal sector from a global, regional (Latin America) and Mexican perspective, the authors argue the need to deal with a series of socio-economic disadvantages that prevent the application of the thesis of the informal economy in Mexico. This need is justified by proving that the methodology of the informal economy provides a far more accurate picture of informality in Mexico than that offered by traditional methodology; a number of strategies to encourage the implementation of this methodology are also proposed.