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It has been argued that the high degree of informality in Latin America’s labor market has led to stagnation in the control of economic activities, and in turn, the authorities are preoccupied with more pressing matters than modernizing their approach.

Tradition and culture also play a key role. In poorer, remote regions far from law enforcement, values and practices are passed down from generation to generation and the influence of a history paved with slavery can be seen clearly on many levels to this day, including within the labor market.

Where labor laws appear to be more progressive, lack of enforcement is rife, and unions form to fight for the rights of the workers, but within smaller companies, unions can lack leverage and leaders are free to abuse their position, resulting in lower pay, longer hours and fewer vacations for the majority of workers in Latin America, including children.

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Employment and Labor Law

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