From the Consensus Reforms to Reforms for Protected and Inclusive Employment

This article analyses the effects of labor reforms in Latin America. Although they were geared towards introducing more flexibility in labor markets, the side-effects were precariousness & exclusion. This is examined by reviewing the transformation in the labor contract structure that shifted towards atypical contracts & non-registered labor. The latter concentrated in the informal sector, while the former was mainly in formal enterprises with unstable & not fully protected workers. This is linked to the expansion of the concept of informality from sector to the economy. The article suggests five components for a strategy of inclusive & protected employment: less & better regulations of informal activities; ensuring labor rights in informal enterprises; shifting labor reforms towards flexible but secure employment contracts; the need to recognize the existence of employment relationships; & to introduce regulation & guaranteeing social protection on universal basis. Adapted from the source document.