Definition of Informal Work (in black)

Certain work activities are performed while margin of the established legal framework. The term informal work is used to refer to them, but also other names, such as black work or economy submerged.

Regardless of what it is called, it is an activity with a double face, since it serves so that a part of the population can survive and, at the same time, poses a problem for the economy of a country.

Typical activities seen in this scenario

In all countries there is a percentage of the population that works in black and in some cases this percentage can be very high. In general, these are activities that do not require great specialization: sale of merchandise in the streets, manual work carried out in the home, home arrangements at home, transport from goods to small scale, removals, private classes, etc.

It should be noted that people who carry out informal work activities do not always have the purpose of defrauding the ranch or deceiving anyone, but its sole purpose is to get ahead with its lives.

Problems associated with working in black

It generates a series of inconveniences in the whole of the economy of a country. First, the official calculation of a country's wealth (GDP) is fictitious, since the entire black economy is not accounted for.

The state stops collecting taxes and, therefore, a tax fraud occurs that affects the state coffers and, consequently, the public services that citizens receive. A comparative grievance is generated among citizens, since some pay taxes related to their work and others do not.

On the other hand, the underground economy often leads to problematic situations (semi-slavery work, lack of control in the quality of the products and services offered, social lack of protection for workers and a price level that destabilizes the market labor legal).

Causes that explain the phenomenon of informal work and strategies to combat it

Experts consider that there are three main reasons why the so-called economy exists submerged: an excessive tax burden, a certain corruption in society as a whole and a limited social conscience on the importance of regulating any work activity.

The main problem generated by the underground economy is tax fraud and to combat it, experts propose two fundamental strategies:

1) intensify government control over informal work and

2) increase sanctions and fines for this type of activity.

Photos: Fotolia - Vichailao / Mauro Rodrigues

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