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Informal workers earn 26% more than formal

MEXICO CITY -. Persons working in conditions of informality in the informal or formal sector, ie, those who work for themselves and / or unregistered business account, have higher incomes on average compared to those who work in conditions informality, but within the formal sector, ie, those employed in domestic service; in formal institutions or companies; or in the agricultural field, according to information from the National Institute of Statistics and Geography (INEGI).

According to the agency, on average a casual employee working in the informal sector earn 28.8 pesos per hour worked, while one who works in formal earns on average 22.8 pesos per hour. This occurs with the same hours worked for both types of employees, and who work on average 39.6 hours per week.

Means

This difference in average income calculator INEGI explained, first, by the segment of self-employed persons, ie, persons who hold office alone or in association with others; and has no charge or paid assistants are unpaid workers. Nine million 706 thousand people who are in this situation, 25 percent do so in the agricultural field, and have average earnings per hour worked of 13.30 pesos. However, for the remaining 75 percent (7.2 million people) working on their own, their average income is 31.40 pesos per hour worked.

The second aspect that explains the current income differential between informal workers formal and informal is the segment of employees who are subordinates. 13.5 million people who work for an employer (formal or informal), which makes 9.8 million in the formal sector has an average hourly wage of 23.4 pesos. In contrast, the remaining 3.7 million of subordinated working in the informal or unorganized sector have a median income of 22.1 pesos for every hour they work, ie, a mean difference of 1.3 pesos for both types of employees.

Increased work pressure at home and the lack of economic growth in recent years have made sufficient formal jobs are not generated, so the stock has found its informality exhaust valve to be used. Currently six out of ten people are in this situation.

More informal

According to the INEGI, there are 28.7 million people who work in conditions of informality. This figure implies eight million people more than those working in the formal sector of the economy.

The universe of people who are employed in informal situation, 13.7 million are employed in the informal sector, ie, working in unregistered economic units, and without any social protection.

Note that of these 13.7 million people, 53 percent are self-employed, 33 percent are subordinate workers, eight percent are unpaid employees and six percent are employers.

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