Economic informality on the U.S.‐Mexican border: A (re)view from South Texas

Abstract

In this paper, we review and extend previous work on U.S.-Mexico border economic informality with a special focus on the South Texas borderlands. Specifically, we offer three conceptual models of economic informality relevant to South Texas: 1) the informal marketplace at the border; 2) the confluence of (in)formality through the possession of different forms of personal documentation including the relationship between earnings and individual documentation; and 3) the graduation of informality to formality as informal firms mature (and grow) over time. Each of these models is supported with fieldwork, extended interviews, and case studies from the region. We conclude with a call for further research initiatives based upon the conceptual models proposed and offer methodological suggestions in the conduct of borderlands research on economic informality.

“Eyes that don't see, heart that doesn't feel”: Coping with sex work in intimate relationships and its implications for HIV/STI prevention

“…In the burgeoning, informal border economy (Pisani et al, 2008), this often took the form of sex work among women and odd jobs and petty crime (e.g., drug market activities) for men. Mercedes Gonzalez de la Rocha (2006) has suggested that this decay of formal labor market opportunities is creating new urban patterns in which men are increasingly alienated from their capacity to fulfill socially and culturally assigned roles as household providers.…”

The Determinants of Nicaraguan Nonagricultural Exporters: A Firm-Level Perspective

“…The path from informal business to exporting firm is a surprising finding in this study. Previous tentative research has documented this business progression from informal to formal (Pisani, Richardson, & Patrick, 2008), but not from informal enterprise to exporter. A more developed and purposeful investigation into this informal-to-export progression is called for.…”

“…See Pisani, Richardson, and Patrick (2008) for a discussion of informal to formal business progression.…”

Does Informality Impact Formal Sector Firms?: A Case Study from Nicaragua

“…Roughly one-third answered that informal firms were not much or of no concern, 39.0% answered that informal firms were a moderate obstacle to business success, and 27.9% indicated informal firms were a major or severe obstacle to conducting business. As there is often a progression toward formality through informality (Pisani, Richardson & Patrick, 2008), one-quarter of surveyed firms indicated that that had begun operations as informal firms with the average time to formality for this group 8.5 years. Within this time span, these firms spent about one-third (34.2%) of their existence as informal businesses before transitioning into the formal sector.…”

“…At times, these sectors may be in direct competition which operationally occurs at the level of the firm (Milgram, 2011). Typically firm progression or upgrading, if it occurs at all, is one from informality to formality (Pisani, Richardson, & Patrick, 2008;Sonobe, Akoten, & Otsuka, 2011).…”