Socio-Economic and Spatial Determinants of an Informality Spectrum: The Case of El Amate in Guatemala City
Abstract
Following recent trends in literature, this dissertation moves away from conventional measurements of informality and formality that conceive them as binary and opposing concepts. Instead, this study proposes to define formality and informality as a spectrum or continuum. A comprehensive framework that incorporates decent working conditions, as well as sociodemographic characteristics, through the International Labor Organization decent work approach is used to instrumentalize an informality-formality spectrum. To achieve this reconceptualization, an empirical analysis is conducted in Guatemala; using logistic regression and risk matrix analysis, vendors can be allocated somewhere on the spectrum. Additionally, it is possible to understand how urban policies like relocations affect vendor likelihood of being formal or informal depending on their decent work characteristics. Specifically, the empirical analysis is applied to a relocation experience of street vendors of 6th Avenue in Guatemala City. These vendors were relocated to a nearby ad-hoc market, El Amate. Analyzing post-relocation data and comparing them with so-called “formal” vendors allows for testing of the model. Results show that when El Amate vendors are recategorized based on the proposed spectrum, 85% fall under low or medium-low likelihood of being informal. Work characteristics like access to physical infrastructure that provides lifeline services, bathrooms, storage, and safety, as well as having access to a written contract, are some of the decent work elements that push vendors closer to formality on the informality-formality spectrum. On the contrary, not providing vendors with access to training on how to grow business puts vendors closer to informality. Sociodemographic elements like being represented by an organization that is recognized by local officers, like in the case of El Amate, is significant in increasing vendor likelihood of being informal on the spectrum. This contrasts with current definitions that characterize vendors at El Amate as informal based only on traditional measures. On the other hand, results for businesses of 6th Avenue show that despite their formal status in the economy, they can lack decent work elements. Local authorities may use this approach as a tool to improve decent working conditions of vendors at all levels, formal or informal.
Subject
InformalityUrban Policies
Economic Development
Latin America and the Caribbean
Risk Analysis
Citation
Perez Arguelles, Maria Paula (2020). Socio-Economic and Spatial Determinants of an Informality Spectrum: The Case of El Amate in Guatemala City. Doctoral dissertation, Texas A&M University. Available electronically from https : / /hdl .handle .net /1969 .1 /191816.