Informality, the state and the social contract in Latin America: a preliminary exploration.

From: International Labour Review | Date: September 22, 2007| Author: Saavedra, Jaime; Tommasi, Mariano | Copyright information

Abstract: This article sees informality in Latin America as a reflection of dysfunctional interactions between individuals and the State and of the latter's inability to perform adequately in regard to redistribution and the provision of public goods and services. This translates into low rates of social security contribution and coverage; pervasive evasion of tax, labour and business regulations; and low levels of tax collection, law enforcement and trust in the State. The challen...

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