13 of informality that exist in Argentina. The first consists of small informal employers, such as construction companies and warehouses hiring a few workers. The second entails individuals such as street vendors. Many of the companies working in these areas are relatively small and do not pay employee benefits or social security taxes. They also cannot afford to pay workers high wages; therefore, informal wages are 50% less than formal wages on average. Among the poorest 20% of the workforce, nearly four of every five work in the informal sector, suggesting that the informal sector consists primarily of lower-waged workers, in either poverty or extreme poverty (Bonnet et al., 2018). An example of a typical informal worker is an urban resident who operates a small street vendor enterprise fully in the informal sector. They may use all their money for food and shelter for their family. They would not be worrying over taxes or employee benefits, such as health care, retirement, or social security, but may receive small subsidies from social benefits, such as the Universal Child Allowance program (described in more detail in the next section). If this vendor were taxed, they would not be able to survive, even if they increased their prices. This is because low-end goods, such as inexpensive eyeglass frames and other knockoff products, often are the most sold items in informal markets; hence, consumers purchase them primarily due to their cheap prices (Oceguera, 2017). Table 1 breaks down the sociodemographic characteristics of the informal workforce as compared to formal workers. It suggests a disproportionate number of younger single women, who are less educated and are more likely to be in the informal sector compared to those in the formal sector. Initiatives to reduce the informal sector need to be targeted at this group and at related, young, less-educated demographics. Change should be instituted at a young age, so working in the informal sector does not become a lifelong problem for these individuals. Figure 1 Informal Employment Share of Workforce in Argentina, 2004–2019 (%) Source: ILO, 2019. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 60 58 56 54 52 50 48 46 Percent of Workforce
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