Informality remains a defining feature of labor markets in Latin America and the Caribbean, affecting around 55–60% of workers. This project revisits the longstanding debate on the causes and consequences of informality, building on the framework of Informality: Exit and Exclusion (World Bank, 2007). While earlier work highlighted that many informal workers may voluntarily choose self-employment due to its flexibility and non-wage benefits, this study incorporates new data and recent advances in modeling to reassess these dynamics.
Using harmonized labor surveys, panel data, firm-level information, and novel evidence on worker preferences, the project updates key stylized facts on informality and evaluates the impact of commonly proposed policies. The aim is to provide a more comprehensive and up-to-date understanding of informality and its implications for workers and economic performance in the region.
| Repository name | URI |
|---|---|
| Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Paper exhibits were reproduced on a computer with the following specifications:
• OS: Windows 11 Enterprise
• Processor: Intel(R) Xeon(R) Gold 5218 CPU @ 2.30GHz (2.30 GHz) (2 processors)
• Memory available: 8.15 GB
• Software version: Stata 19.5 MP
Run time: ~25 minutes
To reproduce the findings in this paper, a replicator must:
0. Master, and run it.Since not all the original data cannot be redistributed, the package includes the outputs produced by the authors, which can be used to review the results presented in the paper.
Some data is restricted and has not been included in the reproducibility package. For more details, refer to the README file.
| Author | Affiliation | |
|---|---|---|
| William F. Maloney | World Bank | wmaloney@worldbank.org |
| Guillermo Beylis | World Bank | gbeylis@worldbank.org |
| Nathalie Gonzalez Prieto | World Bank | ngonzalezprieto@worldbank.org |
| Andres Zambrano | World Bank | jzambranoriveros@worldbank.org |
2026-06-30
| Location | Code |
|---|---|
| Latin America | LAC |
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
| Name | URI |
|---|---|
| MIT License | https://opensource.org/license/mit |
| World Bank IGO Rider | https://github.com/worldbank/metadata-editor/blob/main/WB-IGO-RIDER.md |
| Name | Affiliation | |
|---|---|---|
| William F. Maloney | Chief Economist, Latin America and Caribbean, the World Bank | wmaloney@worldbank.org |
| Reproducibility WBG | World Bank | reproducibility@worldbank.org |
| Name | Abbreviation | Affiliation | Role |
|---|---|---|---|
| Reproducibility WBG | DECDI | World Bank - Development Impact Department | Verification and preparation of metadata |
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