Making Trade Liberalization Work for the Poor: Trade Law and the Informal Economy in Colombia

Abstract:     
This is a qualitative study of the working conditions and income of informal workers in Colombia, examined through the lens of legal change in the area of trade liberalization. I will begin by describing the informal economy in general, and its makeup in Colombia in particular, showing the importance of this portion of the economy in fostering economic growth and development. I will go on to describe the changes in Colombian laws that led to further trade liberalization and its opening to international commerce. Finally, I will describe the relationship between the opening of the Colombian economy to external trade and the size and income of the informal sector in Colombia.

Keywords: informal economy, informal sector, trade liberalization, Colombia, free trade agreement

JEL Classifications: O17, F43, F41, N16

Accepted Paper Series