(In)Formalizing Jobs in Latin America and the Caribbean

"(In)Formalizing Jobs in Latin America and the Caribbean: Taxes, Benefits, and Labor Market Incentives" deepens the understanding of the incentives to informalize or formalize work in the labor markets in Latin America and the Caribbean (LAC), focusing on the interplay among personal income taxation, social protection, and labor market policies and how they all combine to shape firms’ and workers’ incentives to (in)formalize jobs. This book introduces a new conceptual framework to guide the analysis and inference—one that centers on individual workers’ decisions and in light of the value they ascribe to present and future benefits; their bargaining power with employers, which is determined by labor market competitiveness; and the government’s ability to detect and sanction evasion.