Small Enterprises, Large Gaps. Employment and Working Conditions in Micro and Small Enterprises in Latin America and the Caribbean. (Thematic Labour Overview 2)

This report demonstrates, the economic structure of Latin America and the Caribbean is characterized by the predominance of one person economic units (own-account orkers) and of microenterprises, as well as by the limited number of medium-sized enterprises. This structural characteristic is clearly a leading cause of the productivity gap between the countries of the region and more developed countries.

The predominance of micro and small enterprises (MSEs) and the dearth of medium-sized enterprises hinder growth of enterprises, as well as the associated reallocation of productive resources and the transition f the labour force from low productivity activities to those of higher productivity. In other words, there has been little change in production structures of the region. This transformation is essential for sustained, inclusive growth. Currently, labour markets in the region have major gaps in productivity, inequality, employment and working conditions.