This study aims to identify, analyze, and characterize informality in its labor dimension (informal workers) and in the various economic units where it manifests (informal enterprises), examining the respective effects of informality on both individuals’ lives and the economy’s performance. This analysis will also include a classification of different types of informal enterprises according to their level of productivity.

The study will highlight the dynamics of informality in the Chilean labor market, explore its evolution and causes, and propose measures to mitigate its negative impacts and strengthen formalization processes. This analysis will build on existing evidence, both quantitative and qualitative, as well as an updated assessment of the challenges faced by Chile’s labor and productive systems.

The ultimate goal is to support the design of more effective public policies that aim to reduce informality and improve the quality of employment and labor conditions in the country.