The informal economy of Guayaquil: A review of the theoretical approach

Abstract

DOI: https://doi.org/10.46296/rc.v9i17.0411

ABSTRACT

The informal economy is one of the most important structural phenomena in the Latin American labor market, and especially in the city of Guayaquil, where there is a high prevalence of unregulated employment across various productive sectors and population groups. This article aims to analyze the informal economy in Guayaquil from a theoretical perspective through a review of the scientific literature published since 2005. The research was developed within a qualitative, documentary, and descriptive-analytical design, using indexed academic databases and applying selection criteria based on thematic relevance and scientific rigor. The findings indicate that in Guayaquil, informality responds to structural factors specific to the region, such as socioeconomic inequality, the disconnect between education and the labor market, limitations in access to formal financing, and institutional weakness. It was also found that certain groups (young people, women, migrants, and people with higher education) are highly vulnerable to informal working conditions. Likewise, it was also found that informal financing, including loan sharking, undermines the sustainability of urban businesses, especially those led by women. In conclusion, the informal economy in Guayaquil cannot be understood solely as a consequence of unemployment; rather, the phenomenon must be considered an intricate dynamic complexly linked to economic, social, and institutional factors that demand public policies promoting formal financial inclusion, formalization, and strengthening the labor market.

Keywords: Informal economy, informal employment, urban entrepreneurship, informal financing, labor inequality, Guayaquil.