Determinants of Informal Labor Market Participation: An Empirical Analysis from Urban Brazil

Abstract

This study investigates the factors influencing informal labor market participation in urban Brazil, utilizing a mixed-methods approach that combines quantitative data analysis from national surveys with qualitative interviews. Informal employment poses significant challenges to economic development and labor rights, affecting millions of workers. The findings highlight the interplay between individual characteristics, economic conditions, and regulatory frameworks as key determinants of informal labor engagement. Our results suggest that targeted policy interventions are necessary to enhance formalization processes and improve labor conditions. By identifying the underlying causes of informal labor, this research provides a foundation for effective economic policies aimed at bolstering formal employment.