Informal Labor Market Differences

The informal labor market consists of jobs that aren’t regulated or protected by government laws, like minimum wage and benefits. People in this market often work in sectors like day labor, street vending, or domestic help. Inequalities arise because workers lack job security, fair wages, and access to healthcare or retirement plans. These positions often fall to marginalized groups who may not have the education or connections to secure formal jobs. Consequently, the informal market perpetuates cycles of poverty and limits economic mobility, contributing to broader labor market inequalities.