Evolución y factores determinantes de la economía informal periodo 2018-2022: caso Ecuador.

Abstract

The objective is identify factors associated with labor informality in Ecuador from 2018-2022 through econometric analysis of INEC surveys. The study examines correlations between informality and income, gender, residence, education, social security, and workplace bookkeeping. The methodology is quantitative and deductive, with a descriptive design. Literature on informality is reviewed to establish relationships with determinants. Results indicate informality increased due to political, social, and demographic factors.. Rural residents, men, those with lower income and education, without social security, and in workplaces without accounting showed higher informality likelihood. This highlights the need for policies promoting formalization and social protection among vulnerable groups. Greater formality requires improved education, streamlined business legalization, and loans calibrated to repayment capacity. Policies should address informality's impacts on state finances, social security access, and labor conditions. Formalization provides tax revenues to improve public services, growth, and development. In conclusion, findings suggest Ecuador should develop policies tackling informality's causes, establishing a formal productive sector that pays taxes and guarantees worker rights. Further research could enrich understanding of informality's impacts on welfare and GDP. Additional investigations on the political economy of informality may shed light on power dynamics influencing policy responses. A multidimensional lens incorporating historical trends and institutional factors could provide greater insight into policy design. Comparative studies examining informal labor markets across Latin American countries may also illuminate effective policy strategies tailored to the region. Broadly, a nuanced analysis of informality requires considering cultural attitudes, global economic forces, and the complex informal-formal linkages inherent in developing economies.