SEPTEMBER 8TH

The last class the professor started talking about some kinds of hostile reception, including xenophobia,social invisibility ( guilt that creates hate), discrimination and social, economical and legal abandonment.

Then we define informality which means operate in illegality but not whit illegal objectives.

Characteristics:

• Do not use complex technologies
• There is not a well establish work division
• They are not legally constituted
• They have many work relationships at the same time

Informal workers (DANE)

• Unpaid family employees
• Domestic service
• Self-employees
• Ten or less

ELEMENTS

• High or low entry or exit barriers,depending on the activity: there are mental barriers such as "What'd people say?" or other human barriers like in Medellin there are semaphore's owners so no one but them can work there.
• Need for seasonality: Christmas' trees , Valentine's cards...
• Ilegal control of certain activities
• Abuse of power
• Irregular salary
• Reduced or no control from the government
• Autonomous or complementary activities
• Small scale with some exceptions
• Reduced or no control from the government
• Social or family relationships replace the impersonal work
• Poor competitiveness: buy expensive & sell cheap
• Not reinvestment (short-term orientation)
• Low voice and non-unionization

Social problems

• Do not pay taxes
• Unfair competition with the formal sector: prices, piracy,distribution,copyright, etc.
• No warranty on products
• Social discomfort
• Threats on health

Induction factors

• Economic needs
• Traffic and exploitation of human beings
• Migrations
• Access to cheaper resources
• Lack of legal and financial opportunities
• Unemployment
• High transaction costs
• Poor economic growth and high birth rate