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Informality in the time of COVID-19 in Latin America: Implications and policy options
- Source :
- PLoS ONE, PLoS ONE, Vol 16, Iss 12, p e0261277 (2021)
- Publication Year :
- 2021
- Publisher :
- Public Library of Science (PLoS), 2021.
-
Abstract
- This paper analyzes the dynamics of the labor market in Latin America during the COVID-19 pandemic. After a decade of a virtuous circle of growth with the creation of formal jobs, the pandemic has had an considerable impact on the region’s labor market, generating an unparalleled increase in the proportion of the inactive population, considerable reductions in informality, and, in contrast, smaller fluctuations in formal jobs. In this context, the formal sector, given its lower flexibility, became a "social safety net" that preserved the stability of employment and wages. Based on the findings presented in this paper, it is projected that, starting in 2021, informality will grow to levels higher than those of the pre-COVID-19 era–with 7.56 million additional informal jobs–as a result of the population returning to the labor market to compensate for the declines in incomes. According to the simulations presented, postponing or forgiving income tax payments and social security contributions conditional on the generation of formal jobs could reduce the growth of informality by 50 to 75 percent. Achieving educational improvements has the potential to reduce it by 50 percent.
- Subjects :
- Adult
Employment
Male
Adolescent
Economics
Epidemiology
Science
Argentina
Social Sciences
Public Policy
Colombia
Geographical locations
Young Adult
Peru
Salaries
Medicine and Health Sciences
Humans
Occupations
Pandemics
Family Characteristics
Multidisciplinary
Salaries and Fringe Benefits
COVID-19
Labor Markets
Middle Aged
South America
Latin America
Social Class
Socioeconomic Factors
Labor Economics
Medicine
Female
People and places
Brazil
Research Article
Subjects
Details
- ISSN :
- 19326203
- Volume :
- 16
- Database :
- OpenAIRE
- Journal :
- PLOS ONE
- Accession number :
- edsair.doi.dedup.....da4f95b9eab53687fd3f4db6b0ce2816