Objective:

To analyze the socio-economic conditions and the economic efficiency of informal workers; as well as, determine the factors that contribute to the growth of informal employment in Mexico City.

Methodology:

Information was obtained from a questionnaire applied to informal workers considered subsistence and a Cobb-Douglas production function was estimated to determine the efficiency of informal activities.

Results:

Informal workers have various social deficiencies related to health services, housing, education, among others. It was also found that informal workers receive daily incomes higher than the national average and with the same hours worked.

Limitations:

Only a specific portion of the population was considered because the informal economy is complex and heterogeneous. However, the workers interviewed carry out their activity in precarious conditions and lack social protection, which is why they must be cared for by public policies.

Conclusions:

Informal activities with low investment are economically efficient, but the increase in their productivity is limited and therefore it is difficult for informal workers to improve their socioeconomic conditions. A policy focused on the creation of quality, well-paid formal jobs can influence the reduction of informal activity.

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