ABSTRACT
This chapter attempts to clarify what definition is being used for the data and discussion. There are very high percentages of workers in the 'informal economy' in Latin America and Mexico. In Mexico, estimates vary but a recent one by a knowledgeable observer made an estimate of that the informal economy represents 10 percent of Producto Interno Bruto (PIB). The informal sector includes the whole array of goods and services that generally are ignored in official statistics. The informal labor force also is linked to globalization by its increasing demand for low-cost services and products being produced by an expanding low-income population. In Mexico the informal sector has been analyzed by different governmental organizations. However, these analyses rely substantially upon demographic and structural analysis. There are a number of different ways of calculating the extent of the informal sector on the gross national product (PIB).
