McKinsey_MGI
Informality in Mexico
As in many developing economies, informality plays a large role in Mexico's growth and productivity. An estimated 54 percent of nonfarm workers in Mexico are employed informally. Their employers do not register their businesses or employees and may pay workers less than minimum wage, and there are no payments to health and other social programs. Informal businesses also tend to invest little in equipment and training, which severely limits labor productivity. Not surprisingly, informality is highest in poorer parts of Mexico and more prevalent among less-educated and older workers. For more, see "A tale of two Mexicos" bit.ly/1pbaqZm
Informality in Mexico
As in many developing economies, informality plays a large role in Mexico's growth and productivity. An estimated 54 percent of nonfarm workers in Mexico are employed informally. Their employers do not register their businesses or employees and may pay workers less than minimum wage, and there are no payments to health and other social programs. Informal businesses also tend to invest little in equipment and training, which severely limits labor productivity. Not surprisingly, informality is highest in poorer parts of Mexico and more prevalent among less-educated and older workers. For more, see "A tale of two Mexicos" bit.ly/1pbaqZm