Notes on Formalization

Recent experiences of formalization in Latin America and the Caribbean

Non-agricultural informal employment in Latin America and the Caribbean fell from 50% in 2009 to 47.7% in 2012, although the magnitude and pace of this reduction varied in the countries analyzed. A combination of economic factors associated with the region’s growth period and the application of specific policies made this achievement possible. Study results indicate that formalization strategies require a favourable economic context as well as deliberate, coordinated formalization policies –rather than isolated measures– in order to address this highly diverse, multidimensional phenomenon.