ILO: LABOUR FORMALIZATION AND DECLINING INEQUALITY IN ARGENTINA AND BRAZIL – A dynamic approach

An assessment of the positive dynamics that have succeeded in reducing informality and inequality in Argentina and Brazil in the first decade of the century, in a new study published by the ILO

Inequality and labour informality are still distinctive characteristics of Latin America. However, most of the countries have succeeded in reversing the upward trends in both informality and inequality in the 1990s. These positive dynamics have been noteworthy in Argentina and Brazil. This paper analyses the processes of labour formalisation in these countries and its interrelation with the evolution of income inequality over the 2000s. It contributes to two current debates. The first one refers to the role of labour market flexibilisation in employment formalisation. The second one is related to the reduction of income inequality. Most of the literature places emphasis on the evolution of the returns to education. This paper complements this approach by analysing the contribution of formalisation to the reduction of inequality in these countries.

Download the full issue on wage-led policies:
 

Click here or on the picture to download the full pdf file.