Informal economy: An analysis of itinerant commerce in the Maule region, Chile

Abstract

The present work characterizes the informal business of the Maule Region in Chile. It identifies causes, limitations and participants‘ motivations as well as compliance with legal, sanitary and labor regulations. A questionnaire was administered to a random sample in six cities that included four provincial capitals and two medium size cities. The survey reveals that the majority of the participants have a low educational background, an average age of 45 years, possess some type of municipal permit, and do not have the minimal work and health conditions. Nonetheless, although they face social neglect, the participants expressed no desire to change their present labor situation which confirms that the informal economy is their life style.