El dilema del empleo informal y la pobreza monetaria

The dilemma of informal employment and monetary poverty

Juan Bautista Rodríguez Núñez

MPRA Paper from University Library of Munich, Germany

Abstract: This paper explores the relationship between informal employment and monetary poverty in the Dominican Republic, focusing on the structural factors that link both phenomena. Informal workers often lack social protection, face low productivity, and earn subsistence-level wages, trapping them in a cycle of poverty. The study draws from various theoretical frameworks, including Dualist, Institutional, Structuralist, and Voluntarist perspectives, to explain the persistence of informality. It highlights that low education levels and inadequate access to capital are significant determinants of informal employment and poverty. Empirical evidence demonstrates that informal employment exacerbates poverty, as workers in this sector often lack access to financial resources, healthcare, and social protection. Additionally, some workers voluntarily choose informal employment to avoid taxes and regulations in exchange for flexible labor conditions. The findings suggest that structural reforms, including changes in labor laws, social protection expansion, and promotion of technical education, are necessary to address the root causes of informal employment. In conclusion, this paper emphasizes the need for sustainable public policies that foster formal employment opportunities, reduce poverty, and improve the socio-economic conditions of workers in the informal sector.

Keywords: Informal employment; poverty; labor laws; social protection; Dominican Republic (search for similar items in EconPapers)
JEL-codes: I32 J23 J46 O17 (search for similar items in EconPapers)
Date: 2024-11-11
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Published in Revista de Estudos AntiUtilitaristas e Pós-Coloniais 1.14(2024): pp. 1-26

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