The informal sector and poverty in Latin America

Informal economic activities are an important source of jobs in the region. The question as to how this phenomenon should be interpreted and the nature of its im plications are, however, a subject of controversy. Some analysts regard the existence of the inform al economy as a consequence of insufficient economic growth; they contend that it represents a survival strategy and, as such, an involuntary refuge for the poor. Others argue that it is the result of changes in the labour market brought about by government regulation and see it as offering attractive job alternatives that may yield a higher income than many wage-earning positions.