Unemployment And Informality An Economic Contrast

Unemployment and informality An economic contrast

Introduction

When the informality and unemployment pass from days, they have been seen and considered and interpreted from different forms and various criteria. Once this precision is made. According to the DANE, there are different types of informality, but the development of this text will be done with the intention of analyzing and emphasizing labor informality, commonly characterized as "he search" or also as "street vendors". How has it been? Their behavior, and how? Has allowed people to develop activities. What in any way or another allows them to survive.

Developing

It will investigate the relationship between industrial development and this phenomenon. As a characteristic, these people are those who work in public spaces such as: street vendors, market places, domestic workers. In turn, it includes those employees where the employer does not guarantee access to minimum benefits, among other multiple activities. These activities are excluded, that is;on the outside. Above all, they are not sheltered by the regulations and regulations established, stipulated by the State.

For the commercial sector and those who are part of this sector do not enjoy, or have the privilege of possessing such benefits such as: the employment contract, services, social security, social security. This characterization shows the informal sector as a refuge sector, excluded from modern economies whose members are poor individuals who work for subsistence.

This sector is qualified for having a low economic remuneration and lack of protection of their labor rights. This labor unit for which it must opt as a consequence of unemployment.

The lack of opportunities in the formal labor sector, also the low educational level "illiteracy" and even gender and age. Therefore, it is necessary to highlight that unemployment is the main cause of this situation. It has become an alternative and exhaust output for the generation of income that they transfer from some or another way to meet primary needs. Said the above would be responded to work informality as a solution? This sector is qualified for having a low economic remuneration. 

In 1971, with the publication of the book opportunities for informal income and urban employment in Africa, in 1971. The English researcher Keith Hart. The first attempts of study originated (Gómez, Gómez & Borraez). Other outstanding authors in this matter were Singer, Tokman, Klein, Loayza, Maloney and Beckham and Pagés (Gómez, LG). Next. In Latin America, labor informality began using in 1973, through the study of an Employment Program for Latin America (PREALC) in Paraguay (National Administrative Department of Statistics-Dane). 

Under this framework, the PREALC of the International Labor Organization (ILO). Since the 1990s, 40% to 50% of labor occupations in Latin America are in the informal sector (Tokman and Délano, García). This economy has been very common. So far it has been evidenced that the principle or foundation of informality is the lack of opportunities in the formal sector. The disposition in the labor sector is unstable and very low. On the other hand, the institutional approach to labor informality proposes that: tax evasion or tax evasion, for inflation.

The lack of tax awareness, regularization regimes permanently. The dualistic approach is based on the theory of dependency, which establishes that the internal markets of developing countries are dependent on the international markets of developed countries. The structuralist approach distinguishes those factors that cause the demand and the supply of work to be adjusted, sometimes generated by the low industrial development of the economic structure. Instead, for Miranda and Rizo;who expose that the Classical Economics School, based on Say’s Law.

Rejects the idea of opportunities in the formal sector. To absorb all individuals. Since, informality is due to the vacancies available in the formal sector that do not cover with those expectations that are required. Similarly, they believe that unemployment is due to three factors: 1) frictional factors that lead individuals to be underemployed by short periods while they find formal work;2) voluntary unemployment, a situation in which the individual does not find a job with a salary that satisfies his expectations. Market externalities or failures.

That prevent the balance between supply and demand for work. On the other hand, authors such as Castells, Portes and Benton and Tokman, work informality are characterized by their low productivity, use of outdated technologies and unqualified work. Other authors such as Herzer, Di Virgilio, Rodríguez and Redondo, consider labor informality as a phenomenon that represents a group of the population that has conditioning to integrate into the new economic and social models. Therefore, working in the informal sector is also conditioned to gender and educational level.

It has been revealed that women are more likely to belong to labor informality. These results are supported by ILO figures (International Labor Organization) on labor informality according to gender, it is notorious. Worldwide women are part of 64% in labor informality and men with 36% the female gender, fulfills the double role that women have to address the home and also provide income, so they need jobsWith flexible schedules, which are precisely offered by the informal sector.

In Colombia, informality is a very common economic activity, for 2016, labor informality was 47.5% in the last quarter of the year. According to the DANE, the smallest figure in the last decade, for 2017 (48.4%,), 2018 (48.2%) and for 2019 47.9%in the last quarter of the year, occupying women on 48, 6% and men 45.2%. Taking into account the figures can be identified as informality provides approximately half of the jobs in Colombia. The high unemployment rates of recent years have been a stimulus for informality. Unemployment as the main factor that affects informality. 

conclusion

It is that exhaust valve, or exit, for mothers of families, parents of families, youth and even sometimes children who at times can be transient or permanent. Because in the absence of a source of income that supports the expenses that allow them to subsist. Entering the informal sector becomes the escape procedure. It is inevitable to say that it does not affect the living conditions of the population and triggers a cycle of poverty and social exclusion. In addition, it is noted that non -protection of the sector, given the lack of true reforms that translate into greater employment and better quality of life for populations.

References

Jeannot Rossi, F. (2007). Development of the informal economy. 23 (52)

Dane. (2009). Informality Methodology Integrated Household Survey. Bogotá: Dane. Del Valle, to. (2010). Informality and well -being models in Latin America. Politics and Society, 23

Bayón, c., Roberts, b. & Saraví, G. (1998). Social citizenship and informal sector in Latin America. Latin American profiles, 39

Gómez, l. G. (2007). Informality in the economy: something questionable. 10 (19). Gómez, l., Gomez, and. & Borraez, to. (2005). Notes on the informal economy: Medellín Case, 8 (15)

ILO and WTO. (2007). Globalization and employment in the informal sector in developing countries. ILO – WTO.